GENIUS sets new stablecoin rules but remains vague on foreign issuers
The GENIUS Act leaves a foreign stablecoin loophole that puts US issuers at a competitive disadvantage, says former CFTC Chair Timothy Massad.
The signing of the GENIUS Act into law established the first comprehensive regulatory framework for US-issued stablecoins. Supporters argue it will enhance trust, drive mainstream adoption and bolster the dollar’s status as the global reserve currency.
With stablecoins now gaining traction in global finance, the GENIUS Act could also prove a boon for the developing world, attract institutional interest and drive a resurgence in decentralized finance (DeFi).
However, concerns remain over unresolved issues, such as the regulation of foreign issuers, doubts about the ban on yield-bearing stablecoins and the potential dominance of corporate and traditional finance players.
