US House Passes GENIUS Act, Marking Landmark for Crypto, Stablecoins

GENIUS Act Passes: New U.S. Law Sets Stablecoin Standards, Fuels Crypto Adoption and Innovation

  • The U.S. House of Representatives has approved the GENIUS Act, which regulates the use of stablecoins.
  • Industry analysts say the law could reduce uncertainty and boost adoption of digital assets.
  • Large companies and financial institutions are showing increased interest in stablecoins.
  • The act requires stablecoins to be fully backed by highly liquid reserves like U.S. Treasury bills.
  • Experts expect the law to strengthen U.S. dollar influence in blockchain and support future crypto innovations.

The U.S. House of Representatives approved the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS Act) this week. This law aims to provide rules for the use of stablecoins—digital currencies tied to the U.S. dollar—within the country.

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George Kailas, CEO of Prospero.ai, said in an email that the approval marks a turning point for cryptocurrency regulation. He noted that the new law sends a message that the U.S. government is ready to support digital asset innovation instead of restricting it.

Major companies and banks, including Amazon, Walmart, and leading U.S. financial institutions, have started mentioning stablecoins in earnings reports. “That signals a major shift in corporate perception and planning,” Kailas stated. He predicted that with clearer regulation, both retail and institutional investors would become more active in the cryptocurrency market. “For many retail investors, lack of regulatory clarity has been a psychological hurdle,” he added.

Tim Enneking, managing partner of Psalion, described the GENIUS Act as a significant event for digital assets. “This ‘new day’ will light the digital assets ecosystem on fire!” he stated. Enneking emphasized that although the act focuses on stablecoins, its greater importance is the official recognition given to digital currencies by the U.S. government.

Tom Bruni, editor-in-chief & VP at Stocktwits, said the law could help the crypto market develop by supporting stablecoins as a trustworthy medium of exchange. He pointed out that regulated stablecoins can make transactions, international payments, and decentralized finance apps easier to use. Bruni added that while more regulation is expected, recent energy in the market shows investor optimism remains strong.

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Greg Magadini, director of derivatives at Amberdata, explained that the act requires each stablecoin to be backed one-to-one by liquid assets such as U.S. Treasury bills. This could create more demand for U.S. government debt, further anchoring the dollar as the main digital currency reserve. He said this incentive may encourage new waves of blockchain innovation and adoption.

With these developments, experts believe the new law will help set standards for digital currencies and boost confidence among investors. The approval comes as Bitcoin and other cryptocurrencies are trading near record highs, and retail interest is growing in alternative digital assets.

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