US President Donald Trump has called on the House of Representatives to expedite the passage of the GENIUS Act, a bill aimed at regulating dollar-pegged cryptocurrencies.

In a post on Truth Social, Trump said, “The House will hopefully move LIGHTNING FAST, and pass a ‘clean’ GENIUS Act. Get it to my desk, ASAP — NO DELAYS, NO ADD ONS.”

He believes it could help position the US as a leader in the digital asset sector.

The GENIUS Act was approved by the Senate with bipartisan support on June 17. It now awaits a decision in the House.

The bill proposes a regulatory framework for stablecoins. It requires full backing by US dollars or equivalent liquid assets.

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🔗 Source: The Block

🧠 Food for thought

1️⃣ Stablecoins could reshape treasury markets as adoption grows

The economic impact of stablecoin regulation extends beyond crypto markets, potentially affecting U.S. Treasury yields and monetary policy.

Citigroup estimates the stablecoin market could reach $1.6 trillion by 2030, which would significantly increase demand for Treasury securities since stablecoins must maintain reserves in safe assets 1.

This growing demand could put downward pressure on short-term Treasury yields, potentially lowering borrowing costs for the U.S. government but complicating the Federal Reserve’s interest rate management 1.

The GENIUS Act’s requirement for stablecoins to be fully backed by U.S. dollars or similarly liquid assets creates a direct link between crypto adoption and traditional financial markets that didn’t previously exist at this scale 2.

Economists note this connection could introduce new volatility in Treasury markets during periods of crypto stress, as large-scale stablecoin redemptions might trigger sudden selling of reserve assets 1.

2️⃣ Global stablecoin race intensifies with regulatory clarity

The GENIUS Act represents America’s bid to lead in the increasingly competitive global stablecoin landscape where several countries are establishing regulatory frameworks.

The U.S. already hosts major stablecoin projects like Tether and USDC, but faces growing competition from China (which launched First Digital USD), Switzerland (known for crypto-friendly regulations), and even Nigeria (with its eNaira initiative) 3.

The European Union is advancing its Markets in Crypto-Assets (MiCA) regulation to create a clear framework for stablecoin issuers, demonstrating how multiple jurisdictions are racing to capture market share in this emerging sector 3.

Countries leading in stablecoin development share a common approach: establishing robust regulatory environments that balance innovation with compliance requirements, suggesting that regulation is becoming a competitive advantage rather than a hindrance 3.

3️⃣ Balancing innovation and consumer protection remains challenging

The GENIUS Act highlights the ongoing challenge of creating regulations that both foster innovation and adequately protect consumers in emerging financial technologies.

While the bill establishes important safeguards like reserve requirements and bankruptcy protections for stablecoin holders, experts have expressed concerns about whether these measures provide sufficient protection, particularly regarding digital wallet security 4.

The legislation passed with bipartisan support (68-30 in the Senate), but divided opinions exist on whether it achieves the right balance—proponents argue it will increase competition and benefit consumers while critics warn about potential regulatory capture by industry insiders 2.

Market concentration remains a concern, as the potential for monopolization in the stablecoin market raises questions about how different stablecoins will interoperate in a regulated environment 4.

This balancing act mirrors challenges faced globally, as the Atlantic Council’s tracker shows 45 countries have legalized cryptocurrencies while others have imposed partial or general bans, reflecting different approaches to managing innovation and risk 5.

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