#GENIUSActPass The American Genius Act
Here’s a comprehensive look at what might happen if the U.S. Congress passes 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 tie them to a fixed reserve mechanism (dollar or short-term bonds) at a 1:1 ratio.
Requires issuers to disclose reserves monthly and undergo annual audits if the currency value exceeds $50 billion.
🏦 Potential Implications:
1. Increased 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 such as banks, and major merchants like Visa and Mastercard and Amazon may increase.
2. Consumer Protection and Financial Security
Prioritization for currency holders in case of issuer bankruptcy.
Prevent claims 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 securities, demand for short-term treasury bonds may rise.
This could impact the financial market and the government’s profit stability.
4. Balance Between Governance and Political Concerns
Members of Congress and executive staff are prohibited from...
