#GENIUSActPass
Here’s a comprehensive look at what could happen if the U.S. Congress approves the 'GENIUS Act' to regulate stablecoins.
✅ What is the GENIUS Act?
Law Name: Guiding and Establishing National Innovation for U.S. Stablecoins Act.
Aims to regulate stablecoins like USDC and USDT and link them to a fixed reserve mechanism (dollars or short-term bonds) at a 1:1 ratio.
Issuers are required to disclose reserves monthly and undergo annual audits if the currency value exceeds $50 billion.
🏦 Potential implications:
1. Increasing trust and wide adoption
By providing regulatory clarity, the stablecoin market is likely to grow to $2–3 trillion over the decade.
The influx of founders like banks, major traders like Visa, Mastercard, and Amazon may increase.
2. Consumer protection and financial security
Priority for currency holders in case of issuer bankruptcy.
Prohibits claiming that they are guaranteed by the government or by insurance institutions like the FDIC.
Strict requirements against money laundering and restrictions on transactions with startups.
3. Increased activity in the U.S. bond market
Due to the mandatory holding of treasury bonds, demand for short-term treasury bonds may increase.
This may affect the financial market and the profitability stability of the government.
4. Balance between governance and political concerns
Members of Congress and executive staff are prohibited from issuing or owning these currencies; however, it is reported that these bans do not include the office of the president or vice president.
Massachusetts Representative Elizabeth Warren raised concerns about not including Trump's spouse in the ban.
Criticism: 'The fast track to corruption under Trump.'
⚖️ Pros and cons:
Benefits Challenges
Regulatory clarity that reinforces trust Risks to the bond market
Investor protection Objections related to conflicts of interest
Support for financial and tech institutions Higher compliance costs for issuers
📌 Next step
The GENIUS Act was passed by the Senate with 68 votes to 30, and the bill is now in the House of Representatives before being signed by President Trump.
If the council passes and the signature is expected, we will witness a historic shift in U.S. digital currency legislation, especially stablecoins.
🧭 Summary
If Congress passes the law and the president approves it:
A broad range of regulation and legal clarity will be achieved.
Encourages the expansion of stablecoins with confidence.
Enhances the United States' position in 'digital leadership'.
However, it may open discussions about political powers and its effect on the bond market.