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Genius Act: This New US Cryptocurrency Law Could Pave the Way for the Next Global Financial Crisis
UNITED STATES, JUL 8 – The US House aims to pass three bills to regulate stablecoins, clarify crypto oversight, and block central bank digital currencies amid bipartisan debate and industry support.
- On June 17, the GENIUS Act was approved by the US Senate with a bipartisan vote of 68-30, creating a regulatory framework for stablecoins.
- The law aims to protect consumers and the financial system amid concerns that stablecoin issuers may hold insufficient reserves, as seen in past crises.
- A large US firm launches stablecoins tied to the US dollar, totaling 100 billion USD and backed by Treasury securities, but later experiences financial difficulties that might lead to investor concern and mass selloffs.
- If investors return stablecoins en masse and the company liquidates Treasury holdings, US bond prices would drop, causing interest rates to spike and risking a global financial crisis.
- Though regulation provides guardrails, experts warn the GENIUS Act might increase risk by creating false confidence, possibly leading to a destabilizing chain reaction worldwide.
23 Articles
23 Articles
In the United States, few things are coincidental. In the last month, the Senate passed a law that promises to bring order to one of the most chaotic corners of the financial system: the stablecoins, cryptocurrencies that replicate the value of the dollar. The legislation, called GENIUS Act, seeks to regulate what has so far been a mixture of speculation, promises of financial freedom and digital scams. But just when it comes to transparency, th…
Genius Act: this new US cryptocurrency law could pave the way for the next global financial crisis
Aijiro/AhutterstockOn June 17, the US senate passed the GENIUS Act, which was seen as a big win for the cryptocurrency sector. The bill aims to regulate a type of cryptocurrency known as “stablecoins”, but a closer look at the law reveals that it could, quite easily, lead to the next global economic crash. To understand the GENIUS Act, we can look back to the early days of cryptocurrencies. They were created as decentralised currencies whose sup…
Genius Act: This new US cryptocurrency law could pave the way for the next global financial crisis
On June 17, the US Senate passed the GENIUS Act, which was seen as a big win for the cryptocurrency sector. The bill aims to regulate a type of cryptocurrency known as "stablecoins," but a closer look at the law reveals that ...
The GENIUS law, currently in the United States Congress, has the backing of Republicans and Democrats, was passed in the Senate with a strong vote of 68 to 30, has the support of President Donald Trump and will be debated from July 14, during which it has been called by the House of Representatives as the “Cryptus Week.” The law is much more than a regulation of stablecoins (virtual currencies indexed to assets of stable value).
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