Trump signs GENIUS Act into law – Stablecoins, crypto adoption, and more…

Key Points

1. The GENIUS Act introduces a new system of oversight and strict financial requirements for stablecoins in the U.S.

2. Tether (USDT) faces significant challenges under the new law, potentially requiring a U.S.-only version of its stablecoin.

3. USD Coin (USDC) is better prepared due to its reserves being mostly cash and government debt.

4. DAI’s decentralized model does not fit the new regulatory framework, potentially sidelining it in the U.S. financial system.

5. The Act explicitly states that stablecoins are not securities or commodities, removing the SEC and CFTC from regulatory control.

6. The U.S. is playing catch-up to Europe’s MiCA regulation, with the GENIUS Act creating a patchwork of state and federal rules.

7. The law includes provisions from the Anti-CBDC Act, blocking the Fed from offering digital currency accounts to the public.

8. Legal challenges are anticipated regarding the government’s new powers to freeze or burn assets and potential overreach by federal agencies.