CBDC News

GENIUS Act Paves the Way for Stablecoins

Finally, the US Senate has passed legislation about stablecoins after a number of years trying. The GENIUS Act now moves to the House of Representatives. The Act will provide greater regulatory certainty for stablecoins by protecting consumers, establishing transparency and creating clearly defined trading regulations. In addition, market infrastructure laws will govern regulated crypto exchanges, custodians and token issuance (other than stablecoins).

97% of stablecoins are denominated in US dollars (followed by gold), and this legislation is seen as reinforcing the position of the dollar.

The US industry sees stablecoins as being the foundation that will bring consumers, investors, and enterprises on-chain. While payments are part of the commercial process, for the ecosystem to flourish there is a need for products, services, digital assets and privacy to all scale up to operate on the blockchain.