Below are guest posts and opinions from Innokenty Isers, CEO of Paybis.
After years of uncertainty, stubcoin restrictions have finally gained momentum in Capitol Hill. Three Competing Invoices –Genius act, Stable actsand a nameless proposal Rep. Maxine Waters (D-CA)-This long-term push towards this clear rule that is fighting to define the future of the US digital dollar will allow us to determine whether Stablecoins can become a mainstream financial tool or continue to be stuck under regulations.
Earlier this month, the Senate Banking Committee proceeded with a genius act Bipartisan votes of 18-6marks the most important steps towards the federal framework of stablecoins. The bill defines “stable payment coins” as the cryptocurrency used for payment or settlement.
Both the Genius Act and the Stable Act establish the first federal licensing framework for Stablecoins in the US, and the Genius Act establishes licensing, reservations and disclosure requirements while prioritizing bankruptcy consumer claims. It regulates both banks and non-bank stubcoin issuers, which balance state and federal oversight.
Issuers above $10 billion in market capitalization, such as Tethers and Circles, must comply with OCC and Federal Reserve regulations, while smaller publishers can opt for state-level oversight.
However, the key difference here is that stable laws will implement a two-year suspension by issuing new “endogenously secured stable rocks” supported only by other digital assets, unless they exist before the legislation passes.
As Washington advances its regulatory efforts, the US stubcoin industry is undergoing significant changes. If these regulations were enacted, they could play a meaningful role in shaping a wider economy.
Stubcoin as a digital expansion of the US dollar
In particular – the genius acts will be the issuer of the payment stable, Gramm-Leach-Bliley Actand requires that you maintain customer privacy and protect private personal information.
Under the Genius Act, regulatory approval Stablecoins require assistance with high quality liquid US assets – financial notes and insurance deposits.
The double regulatory framework established by these bills is extremely important. By balancing federal and state-level surveillance, the law allows industry players to innovate at their own pace, while maintaining regulatory protection.
Beyond that, in recent months, traditional financial institutions have increasingly acknowledged the role of stubcoins. stripe and Bank of America Explore their integration. Clear regulations help reduce risk, promote adoption and contribute to stronger financial infrastructure around the US dollar.
The impact of USD on control
Under the new regulations, issuers operating in the US market must support the idiotic dollar with sectarian reserves. This means that many large issuers need to convert their assets into capital and reserves caused by dollars. Therefore, by default, it leads to increased adoption and reliance on USD.
As global demand grows, the US government can see that domestically developed crypto or ridiculous ecosystems are closely tied to USD. This integrity helps prevent foreign and digital currencies from reducing the role of the dollar in international trade.
If the US creates an innovative and safe environment for the digital dollar, global investors and businesses could support US-based Stablecoin publishers. As outlined in the law, enhanced interoperability standards may encourage smoother international transactions and integration into international payment networks.
In the long run, this could shift market liquidity towards US-backed stubcoins, further strengthening the dollar’s control. Critics warn that LAX surveillance could allow Big Tech to potentially privatize the dollar. However, by making strict reserves and transparency standards critical, the bill minimizes this risk.
What’s ahead?
The genius is bringing stubcoins closer to mainstream financial integration and increasing demand for US Treasury bills. If these bills are passed in the short term, they will likely cause a surge in institutional adoption. More traditional banks and payment providers offer Stablecoin services and see more payments and liquidity management through Stablecoins. Therefore, as domestic US usage surges, Stablecoin’s market capitalization will grow.
Once the Stablecoin framework is in place, we were able to see the emergence of auxiliary services, such as digital wallets, custody solutions, and interoperable payment networks. These services further improve the usability of US-backed stablecoins. These developments create an extensive ecosystem around digital dollars.
Over time, the US Stablecoin market can reduce transactional friction and reduce the costs of cross-border payments. It could lead to higher speeds and broader financial inclusion of digital transactions, which could enhance the usefulness of the dollar.
The ability of US regulations to set global standards could also indirectly put pressure on other countries to match US practices, further strengthening their control of the dollar.
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