The US has passed three major crypto bills, including one signed into law on Friday, which aims to facilitate private companies issuing stablecoins. The GENIUS Act provides specific requirements for stablecoin issuers, but its adequacy is a subject of debate among consumer protection advocates. They argue that the rules fail to offer sufficient protections.
The bill’s passage has lifted major crypto tokens, including bitcoin and ether, to all-time highs, with bitcoin outperforming other assets this year. However, concerns remain over potential risks associated with stablecoins, such as increased costs for consumers, a proliferation of privately issued stablecoins, and the risk of unregulated banks issuing stablecoins.
The Trump family’s interest in stablecoins has raised eyebrows, particularly due to World Liberty Financial, which is majority-owned by the Trump Organization. The bill could lead to a lack of clear regulation on cryptoassets, potentially benefiting Trump’s businesses. Critics argue that the GENIUS Act fails to address these concerns and risks creating another financial crisis.
The CLARITY Act aims to sort tokens into categories for clearer regulation, but it has upset some Democrats who see it as a giveaway to Trump’s business interests. The Anti-CBDC Surveillance State Act bans the issuance of central bank digital currencies (CBDCs), which are not currently being considered by the US Federal Reserve.
The passage of these bills marks significant milestones in the US crypto regulatory landscape, but ongoing debates highlight the need for clearer guidelines and robust protections to safeguard consumers and maintain market integrity.
Source: https://www.nbcnews.com/tech/crypto/genius-act-new-crypto-law-stablecoins-explained-rcna219658