GENIUS Act blocks Big Tech, banks from dominating stablecoins: Circle exec

Key Points

1. The GENIUS Act includes a 'Libra clause' requiring non-bank entities to seek approval from a Treasury Department committee before launching stablecoins.

2. Banks issuing stablecoins must adhere to strict rules, including no risk-taking, leverage, or lending, differing from models like JPMorgan's.

3. The bill passed with bipartisan support, receiving over 300 House votes, including 102 Democrats, and aims to provide 'rules-based' stability for the dollar in digital finance.

4. The GENIUS Act bans yields on stablecoins, potentially shifting focus to decentralized finance (DeFi) platforms as the primary alternative for interest incentives.

5. The legislation preserves state money-transmitter laws for issuers and aims to prevent risky experiments like Terra, ensuring a solid foundation for stablecoins.