A major piece of US Stablecoin law that awaits a full vote in the Senate may appear as a net positive for US dollar dominance in the digital asset economy.
The Guide and Establishment of National Change for US Stablecoins (Genius) Law aimed to set clear policies for stablecoin collateralization and command compliance with Anti-Money Laundering Laws.
The passage of the bill could strengthen the leading position of the US dollar in the web3 economy, according to a May 29th Foresight Ventures report.
By ordering that Stablecoins have been back 1: 1 in the US dollar, the Genius Act reinforces the role of dollars as “digital currency in the regulating world,” reports. It also allows Fintech companies to develop “following, safe and user-centric financial solutions,” said Zac Tsui, director of investment in Foresight ventures.
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The bill passed a vote on the Senate procedure on May 20 by a 66–32 margin. However, industry observers remain careful ahead of the last floor vote, especially after the bill Failed to gain support from the major democrats Earlier in May.
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The Genius Act may provide way for global crypto regulations
Some industry observers have seen the Genius Act as the first step for investigating a single set of crypto regulations worldwide, as other constituents have looked to follow the regulations that move the world’s largest economy.
“When the US is moving to the Stablecoin policy, the world watch,” Andrei Grachev, managing the partner at DWF Labs and Falcon Finance, told Cointelegraph during the reaction of the chain -day -day X spaces of X Show on May 20.
Stablecoins are no longer a crypto experiment. They are a better form of money. Faster, simpler, and clearer than Fiat, ”he explained.
The bill aims to set clear guidelines for stablecoin providers, which prohibit Stablecoin Reserve’s properties from being invalid or hypothecated.
Stablecoin’s exfoliation may also be forbidden to use the reserve for “anything other than redemption and some safe investment,” including low -risk instruments such as Treasury repos, to guard against the “shadow banking” dangers.
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