news 
**Trump Signs GENIUS Act into Law – Stablecoins, Crypto Adoption, and More**
The crypto community is rejoicing after the United States government finally signed the “Guiding and Establishing National Innovation for U.S. Stablecoins Act,” or GENIUS Act, into law. This significant move marks a crucial milestone in the ongoing quest for regulatory clarity within the cryptocurrency sector.
In an effort to balance growth with oversight, the newly enacted legislation establishes a comprehensive framework for payment stablecoins, laying down stringent financial requirements and regulations for companies operating in this space. Notably, issuers of these coins are now mandated to disclose their reserves monthly and undergo independent audits.
The passage of the GENIUS Act comes after an intense political struggle, with Senator Bill Hagerty championing the bill. To achieve bipartisan support, crucial changes were made to ensure consumer protection and adaptability within the regulatory landscape.
In a significant move, the law explicitly declares that payment stablecoins are neither securities nor commodities, effectively sidelining the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). While the Treasury will still study other types of stablecoins alongside these commissions, this shift in power dynamics is likely to have far-reaching implications.
Notably, this development sets the stage for a global showdown between the United States and Europe. The European Union’s Markets in Crypto-Assets (MiCA) regulation has already been implemented, offering a single, streamlined license that enables companies to operate seamlessly across all 27 member nations. In contrast, the U.S. system appears more fragmented, comprising state and federal rules designed to provide greater flexibility for private enterprise.
As the dust settles on this monumental legislation, attention turns to its impact on prominent market players. The passage of GENIUS Act may force Tether (USDT), the largest stablecoin, to undergo a significant overhaul, as it will need to switch to solely cash and U.S. Treasury bills. This could potentially lead to the creation of a new, U.S.-specific iteration of USDT.
USD Coin (USDC) is likely to fare better in this new regulatory environment. Although the company has already taken steps to strengthen its reporting and auditing processes, it still needs to adjust to the monthly certification requirements outlined in the GENIUS Act.
In stark contrast, Dai’s decentralized model appears ill-equipped to comply with these regulations, highlighting a significant loophole that could leave DAI outside of the official U.S. financial system.
The signing of the GENIUS Act serves as a catalyst for further debate and controversy. The law, once ratified, will set the stage for an impending struggle over the future of digital currencies in the United States.
Source: ambcrypto.com
