The U.S. Senate has passed the GENIUS Act in a 68-30 vote, marking a significant step towards stablecoin regulation and eventual mainstream adoption in the United States.
This legislative move establishes a legal framework for stablecoins, potentially boosting capital inflow and signaling a shift in regulatory perspective amidst international actions. Immediate reactions include anticipation of increased market confidence.
U.S. Senate Endorses GENIUS Act for Stablecoin Regulation
The GENIUS Act has gained approval in the U.S. Senate, facilitating stablecoin regulation. This act aligns with international regulatory momentum and sets the stage for stablecoins to become mainstream financial instruments.
Key figures such as Christian Catalini and Joshua Chu support the regulation, emphasizing stablecoins’ potential. The act enables tech and private-sector issuers to operate with clarity, significantly impacting the crypto landscape.
Regulatory Clarity Expected to Double Stablecoin Market Size
The GENIUS Act is expected to enhance market stability by providing a regulatory structure, supporting increased international and domestic investment in digital assets. Academic and industry leaders have expressed optimism about these developments.
Analysts predict stablecoin supply could double to over $400 billion by 2025, driven by regulatory measures and higher institutional participation. This aligns with ongoing trends witnessed in the European and Asian markets.
Global Influence: Learning from MiCA and HK’s Ordinance
Past regulatory efforts, such as Europe’s MiCA and Hong Kong’s Stablecoin Ordinance, set historical precedence for the GENIUS Act. These actions signal a global shift toward integrating stablecoins within traditional finance frameworks.
Experts like Christian Catalini emphasize stablecoins’ potential to reshape financial systems, supported by historical analyses of similar uptakes. The act’s approval could trigger further innovation and market alignment in digital finance.
| Disclaimer: This website provides information only and is not financial advice. Cryptocurrency investments are risky. We do not guarantee accuracy and are not liable for losses. Conduct your own research before investing. |
