The three legislations passed during the United States' 'Cryptocurrency Week' mark a substantial implementation of the cryptocurrency regulatory framework, opening a new era of global cryptocurrency legislation and significantly impacting the industry's direction.
'Guidance and Establishment of the National Innovation Act on U.S. Stablecoins' ('Genius Act') requires stablecoin issuers to obtain federal or state-level licenses and hold reserves in a 1:1 ratio of U.S. dollar cash, bank deposits, or short-term U.S. Treasury securities, enhancing the safety of funds, incorporating digital assets into the U.S. sovereign credit system, consolidating the dollar's hegemony in the digital age, creating demand for U.S. Treasuries, and helping to alleviate the debt crisis.
'Digital Asset Market Clarity Act' ('Clarity Act') clarifies the commodity nature of cryptocurrencies, delineates the regulatory division of labor between the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), weakens the SEC's regulatory power, and provides clear rules for the cryptocurrency market.
'Anti-Central Bank Digital Currency Monitoring National Act' ('Anti-CBDC Act') prohibits the Federal Reserve from issuing retail central bank digital currency without authorization, protects citizens' privacy and financial freedom, and builds a 'protective wall' for cryptocurrencies.
The passage of these three bills enhances the legitimacy of the cryptocurrency market, boosts investor confidence, drives up prices, and leads to a collective surge in cryptocurrencies. It also prompts changes in the competitive landscape of the industry, where compliance costs may eliminate smaller issuers, allowing the giants to potentially dominate the market. The global regulatory wave resonates, with countries accelerating the improvement of regulatory frameworks, moving the industry towards a golden period of compliance, which is expected to attract more traditional funds into the market and promote the integration of cryptocurrencies into the mainstream financial system.
