Anybody with any skin in the crypto market has their eyes on the US right now. The Genius Act (Guiding and Establishing National Innovation for the United States) has recently been voted through the Senate. Its purpose is regulating the use of Stable Coins and may pave the way to completely change how the global financial system works.
Stable Coins – backed by traditional currencies
Stable Coins are a digital currency that can be backed by something tangible such as the dollar, bonds and gold. As the name would suggest, they do not have the volatility of crypto currencies such as BTC, XRP, Solana, ADA etc, and this legislation would also allow for consumer protections which do not currently exist.
Under the Biden administration, the crypto industry was targeted by the Securities Exchange Commission (SEC) under Gary Gensler, who brought a multitude of lawsuits against several crypto exchanges, assets and currencies. Barely any of these lawsuits bore fruit for the SEC as they were founded on wild accusations not evidenced by any standing legislation or precedent.
Authorities tried to steer investors off crypto
Many financial reporters and market commentators saw this regulation by enforcement as an attempt to drive speculators away from the crypto market. Wall Street and other institutional investors took advantage of rock-bottom prices. They scooped up huge amounts of ISO 20022-compliant currencies – pre-empting big price hikes driven by retail customers’ FOMO (fear of missing out) in this fledgling industry.
Trump is pro crypto
President Trump has been very pro crypto and has been pushing Congress and the Senate to get a bill passed for the use of Stable Coins in the US. After a second hearing he managed to flip some votes from the Democrat side of the isle, enabling the Genius Act tol be advanced to a full Senate vote. Should it pass, it will be signed into law by the President later this year.
Events like this are likely to precede political and financial change that will have profound effects on the way we live our lives and use currency and money.
So, be diligent, get informed and do not get left behind.
