Congress Passes GENIUS Act in Major Win for US Crypto Industry
“Competition will be fierce,” explains Christian Catalini, founder of the MIT Cryptoecomics Lab and Co-Processor of Diem, the project of Stablecoin now disappeared funded by Meta. “You will see many more transmitters entering the market and competing. Many of these transmitters will be more traditional banks and finches. ”
Crypto defenders argue that stablecoins will strengthen the US dollar as a global reserve currency by increasing demand in developing countries with unstable economies, and allow the United States to borrow at a lower cost by applying for state bond juices. “You could not find a better innovation for the greenback on a whiteboard,” explains Christopher Perkins, president of the Crypto VC Coinfund company.
However, a proliferation of stabbed could destabilize the financial system if regulators do not maintain appropriate surveillance, criticisms warned. If, for example, a major transmitter was bad via a reserve of Stablecoin, leading to a collapse of the value of the medal and to a potential race on other stablescoins, the value of the US government bonds could degrade while the issuers are forced to liquidate their reserve assets to cover the buyouts, which lets the taxpayers potentially pay to pay the rescuers.
“I am very wary of steps to essentially integrate the currency issued in the financial system. Basically, that’s what it represents, ”explains Jacob Silverman, co -author of the book Easy money: cryptocurrency, casino capitalism and fraud golden age.
Another common objection to the Act on Engineering concerns the absence of any provision that would prevent Trump and his family from taking advantage of their own stablecoins.
In May, World Liberty Financial announced that its Stablecoin USD1 would be used by the investment company MGX, which is funded by the United Arab Emirates, to make an investment of $ 2 billion in Binance, the largest crypto exchange in the world. The company affiliated with Trump could earn tens of millions of dollars from the agreement, which sparked complaints among the criticisms that said that the transaction was equivalent to “foreign policy for sale”.
“By adopting the law on genius, politicians benefit from President Trump’s corruption,” said Silverman. “We want to protect consumers, but I don’t think [crypto] should be more legitimized in the United States until the situation with Trump’s cryptographic corruption and the Republican Party is resolved. »»
The White House did not respond to a request for comments.
However, when the Chamber came to vote Thursday, even the legislators who had previously opposed the Crypto tangles of Trump – among themselves, the member of the Sam Liccardo Congress, a democrat who, in February, presented legislation intended to prevent elected officials from taking advantage of their own crypto documents and certain other assets – took place behind the law on genius.
“Whether there is a seal of approval from the congress or not, it is obvious that the Trump Memecoin program and now the stablecoin scheme seem to be inhibited by any concern that people could have,” said Liccardo. “Even if we had exactly the language I wanted in this bill to prohibit Trump, we do not have a Ministry of Justice which will never continue this president or anyone around him for having raped this law,” he adds.
The Doj also did not respond to a comment request.
Although the engineering law can be imperfect, the urgent need to slow down the Stablescoin “Wild West” market required a calculated compromise, says Liccardo. “If we do nothing, we continue to have great uncertainty about who can regulate and how,” he explains. “I see this as not wanting to make the perfect the enemy of good.”
