The Genius Act is an important step with the creation of a crypto-dollar
The pace of regulatory and executive actions concerning the cryptocurrency and blockchain sectors continues to accelerate, with the very first press conference of American digital assets, the Senate banks committee continues to discuss and restore the initiatives of Speating, and the commissioner of the SECr Hester Peirce commissioner, the crypto crypto working group, and the Crypto working group of the SEC HESTER PIERCE, the working group on the crypto of the commissioner of The dry, Hester Peirce, the crypto working group of the Crypto of the SEC Commissioner, Hester Peirce, the Crypto Crypto Working Group, and the Commissioner of the Sec Hester Peirce is already making progress in the Establishment of guidelines and executives for the regulation of cryptography. With the wave of headlines and sound sounds, it would be easy for investors and policies defenders to neglect an important line in practically every movement of politics under the new Trump administration to date; Strengthen and improve the place of the US dollar as a global reserve currency via a dollar -sustained stable stables.
Senator Bill Hagerty presented the law on guidance and the establishment of national innovation for stablescoins (engineering), aimed at regulating the cryptographic tokens caught by an American dollar, which, according to public comments, will focus on The creation of a safe and pro-commune environment for cryptocurrency. The Genius Act relies on previous efforts to integrate stablecoins into the financial markets and the American banking system, including the Clarity for Payment Stablecoins Act. The engineering law details several important aspects of the next potential stablecoin regulation, but will also help accelerate political conversation around a crypto-dollar.
The act of engineering increases the specificity of the stablecoins
Some of the essentials and clarity essential that the Stablescoin sector are sought after, but without limiting itself, which follows. First, the bill as it is currently being written and that being discussed defines stablecoins as digital assets indicated to the US dollar, which seems to compromise efforts for stablescoins based on basic or based products on algorithmic products. Second, the bill seems to recommend the regulation of the federal level for two stalls in particular via the market capitalization threshold of $ 10 billion for federal regulations; USDT and USDC. Given that these two combined stalls have a market capitalization of almost $ 200 billion, obtaining greater regulatory clarity on these two stablescoins supported by the two dollars is imperative for greater adoption and use by individuals and institutions.
An additional point of clarity integrated into the bill is the requirement according to which stabbing issuers must undergo financial audits of reserves on a monthly basis. Apparently a simple requirement, this addition highlights one of the most difficult aspects of the regulation of stablescoin to date. Tether and the USDT token were and remain, the dominant backstroke, dominant back by a large margin but has been assailed by (justifiable) questions concerning the accounting of reserves and other financial information practices for years. The law on engineering, by (in essence) specifying these declaration requirements and monitoring at the federal level, define the bases of complete, consistent and comparable regulations for stablecoins seeking to operate on American markets.
The act of genius will lead to dollars of crypto
One of the most important discussions linked to tokenized assets and in particular stabbed is something that is outside the crypto; How can the United States take effective measures to maintain reserve status of the US dollar? The dollar has faced challenges to its geopolitical domination in the past, but few cases of these challenges have been combined with the changing political landscape which is currently taking place. The European Union, in part because of the increasingly strident language of the United States linked to defense prices and expenditure affiliated to NATO, seeks to extend the use of the euro on a global basis. China, the second largest economy in the world and the final rival in the United States, expands trade, infrastructure and the use of the Yuan on a continuous basis. Finally, the Bric nations actively seek to develop and deploy a joint currency, which would seek to serve as an international exchange support.
The status of the dollar as a global reserve currency is not that which can be supposed to continue in the coming decades, and even less in the face of technologies that redefine payments and financial markets daily. The Genius Act represents an excellent first step towards the codification and regulation around the stables supported by a dollar, relegates the stablescoins without dollar to the secondary state and will improve the transparency with which these parts work. While the dollar seeks to maintain its foreground status worldwide, the adoption of technologies to improve the efficiency and ease with which dollars can be used should be an imperative. Just like the way in which the rise of Petro-Dollar has created an endlessly endless demand for dollars, endearing value to the paradigm change technology of token payments will greatly contribute to ensuring continuous leadership.
The currencies and the nations that adopt tokenization and the blockchain -based payments will be those who assume and maintain leadership in the future; American decision-makers should continue to focus on the integration of stablecoins and the integration of the blockchain to underlie the US dollar.
