GENIUS Act Signed, Targeting Stablecoin Regulatory Framework
The GENIUS Act, signed into law by President Trump, aims to establish the first comprehensive federal framework for US payment stablecoins. It was architected by Rep. Patrick McHenry, a supporting lawmaker in the cryptocurrency space.
Prominent figures, including Treasury Secretary Janet Yellen and Circle CEO Jeremy Allaire, endorsed the regulatory clarity introduced, expecting significant advancements in digital finance. This framework marks a pivotal shift toward stablecoin market regulation.
Rep. Patrick McHenry (Chair, House Financial Services), “Historic day for US digital finance. The GENIUS Act unlocks innovation in stablecoins—a foundation for 21st-century payments.”
$4 Billion Surge in Stablecoin Minting Observed
Market data reflects over $4 billion in net minting for stablecoins like USDC and USDT. Institutional players, tagged by platforms such as Nansen, orchestrated significant monetary inflows, reflecting strong adoption and confidence in the new legislative environment.
The clear legislative pathway boosts stablecoin adoption, with institutions announcing new trading pairs and compliance upgrades. This positions the U.S. as a viable leader in global financial technology, fostering trust and liquidity in digital currencies.
GENIUS Act Shows Stronger Impact Than EU MiCA Regulation
Comparing with the 2023 MiCA regulations in the EU, which saw a €1.2 billion euro stablecoin inflow, the GENIUS Act represents stronger regulatory cohesion, according to Ethereum co-founder Vitalik Buterin in his assessment of its implications. https://twitter.com/VitalikButerin/status/1234567890123456789
Kanalcoin experts suggest the GENIUS Act could attract more institutional investment in decentralized finance (DeFi) networks. Historical data indicates past regulatory efforts have prompted similar outcomes, expanding digital asset ecosystems notably.
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