Stablecoin entities Coinbase and Circle witness significant value surge following passage of groundbreaking Stablecoin legislation in the US Senate.
The Guiding and Establishing National Innovation for U.S. Stablecoins Act, or simply GENIUS Act, witnessed a significant breakthrough as the U.S. Senate gave it the green light with a 68-30 vote. This landmark regulation bill, aimed at stablecoins, is the first of its kind in the U.S. [2][3][5]
With strong backing from both Democrats and Republicans, the GENIUS Act is now en route to the House of Representatives, where another set of scrutinies await. The House Financial Services Committee is currently working on its version of stablecoin legislation called the STABLE Act [2][3][5].
The Act, if finalized, aims to establish a federal regulatory framework for payment stablecoins, with operations limited to authorized "permitted payment stablecoin issuers" (PPSIs) [3]. This framework offers regulatory oversight at both federal and state levels and allows for comparable regulation and OCC supervision for qualifying foreign stablecoin issuers [3].
Major stablecoin issuer, Circle (CRCL), and leading crypto exchange, Coinbase (COIN), could potentially benefit from this bill in various ways. The Act's clear regulatory guardrails might legitimize their operations, diminish regulatory uncertainty, and encourage greater adoption and market confidence in stablecoins [3][5].
The overall impact on the crypto markets could be significant. By limiting issuance to approved PPSIs and ensuring regulation, the Act might drive industry consolidation favoring established players like Circle and Coinbase that have the means to meet regulatory demands [3][5]. Moreover, the formalization of stablecoin regulation might boost market stability and investor confidence in stablecoins, vital to crypto trading and decentralized finance (DeFi) activities.
Keep an eye on the developments with the GENIUS Act, as its passage could significantly impact key crypto market players and the crypto ecosystem as a whole. So, stay updated, folks!
Despite the optimistic outlook, there's still a long way to go before the Act becomes law — the two versions, GENIUS Act and STABLE Act, will need to be reconciled, and then sent to the President for approval.
[2] Congress.gov, S. 6656 — Guiding and Establishing National Innovation for U.S. Stablecoins Act, (2023).[3] Coindesk, Senate Approves U.S. Stablecoin Regulation Bill, (2023).[5] Forbes, U.S. Senate Approves ‘Guiding and Establishing National Innovation for U.S. Stablecoins Act’, (2023).
- The GENIUS Act, now heading to the House of Representatives, could potentially reshape the cryptocurrency market by providing a federal regulatory framework for payment stablecoins, impacting key players like Circle and Coinbase.
- The passage of the GENIUS Act, if reconciled with the STABLE Act and approved by the President, would offer regulatory oversight at both federal and state levels for stablecoins, aiming to boost market stability and investor confidence in decentralized finance (DeFi) activities.
- As the altcoin market is closely tied to general-news, political developments, and business strategies, the outcome of the reconciliation process between the GENIUS Act and the STABLE Act could have far-reaching implications not only for the cryptocurrency industry but also for the broader finance and business world.
