- GENIUS Act aims to regulate stablecoin reserves.
- Bipartisan support for financial innovation.
- Potential 8x growth in U.S. stablecoin market.
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President Donald Trump urged the US House to pass the GENIUS Act swiftly to enhance stablecoin regulation before the congressional August recess.
The GENIUS Act’s swift passage may stabilize the crypto market, with bipartisan support and increased investor confidence.
Senate Banking Committee Chair Tim Scott endorsed the GENIUS Act, emphasizing clarity and American leadership through regulation. The bill proposes stringent backing of stablecoins with US dollars or Treasurys.
Tim Scott, Chairman, Senate Banking Committee, said, “Today is a bold step forward – not just for financial innovation, but for American leadership, consumer protection, and economic opportunity. With the GENIUS Act, we’re bringing clarity to a sector that’s been clouded by uncertainty and proving that bipartisan, principled leadership can still deliver real results for the American people.”
Trump has consistently backed the GENIUS Act, positioning himself as a pro-crypto leader. His involvement raises debates over conflicts due to his crypto business interests.
The Act is expected to dramatically expand the US stablecoin market, driven by stringent reserve backing. This could realign industry liquidity as compliant stablecoins gain prominence.
Treasury Secretary Scott Bessent predicts the Act might push the stablecoin market to $2 trillion over the next decade. This aligns with global regulatory trends paving the way for secure crypto assets.
The GENIUS Act could transform the financial industry, demanding transparency while bolstering US leadership in digital currency regulation. The Act’s progress and market responses are under close observation.
Experts suggest these regulatory changes could drive technological innovation by fostering trust and legitimacy within the crypto sphere. Historical trends in other global markets support this outlook.
