GENIUS Act Reshapes Stablecoin Strategy, Says Foresight Ventures Partner

Key Points

1. The GENIUS Act mandates that stablecoin issuers aiming for scale must comply with bank-level regulatory standards, pushing for institutional integration.

2. Securing a U.S. banking license is becoming a critical advantage for stablecoin issuers, creating both opportunities and barriers in the market.

3. Offshore players like Tether may continue to dominate in DeFi, while regulated issuers will integrate into traditional fintech and banking systems.

4. International jurisdictions like the UAE, Singapore, and Hong Kong are offering lighter regulatory frameworks to attract stablecoin issuers.

5. The GENIUS Act may facilitate the integration of U.S.-regulated issuers into global markets, leveraging U.S. oversight for legitimacy.