Congress passes the Genius Act in a major victory in the U.S. cryptocurrency industry
“The competition will be fierce,” founder of MIT Cryptoansomics Lab, Cocreator of Diem, a now-failed Stablecoin project funded by META. “You’ll see more issuers coming into the market and competing. Many of these issuers will be more traditional banks and fintech.”
Crypto defense advocates believe that stablecoins will enhance the dollar as a global reserve currency by increasing demand from developing countries in unstable economies and allow the United States to create cheaper borrowing through demand for government bonds. “You can’t come up with better innovations for green boards on green boards on green boards on green boards,” said Christopher Perkins, president of CoinFund, Crypto VC company.
But if regulators fail to maintain proper supervision, stable proliferation could undermine the stability of the financial system, critics warn. For example, if the primary issuer is to make a fatal mistake, which can cause the value of the coin to collapse and potentially run against other stablecoins, the value of the U.S. government bonds may fall as the issuer is forced to liquidate the assets of its reserves to cover the dividends, allowing the taxpayer to cover the taxes, thus allowing the taxpayer to pay the fees on the margin.
“I’m very cautious about further integrating privately issued currencies into the financial system. At the bottom, that’s what it stands for,” said Jacob Silverman, co-author of the book. Simple Money: The Golden Age of Cryptocurrency, Casino Capitalism and Fraud.
Another common objection to the Genius Act is that there is no provision that will prevent Trump and his family from profiting from their own stability.
In May, World Free Finance announced that MGX, a UAE-funded investment company, will use its USD1 Stablecoin to make a $2 billion investment in Binance, the world’s largest cryptocurrency exchange. The Trump-related company could make tens of millions of dollars from the deal, sparking complaints from critics who claim the deal constitutes a “foreign policy sale.”
“Through the Genius Act, politicians wish President Trump the corruption,” Silverman said. “We want to protect consumers, but I don’t think so,” he said. [crypto] It should be further legalized in the United States until the situation with Trump’s crypto corruption and the Republican situation are resolved. ”
The White House did not respond to a request for comment.
However, when the House voted Thursday, even lawmakers who had previously opposed Trump’s crypto-entangled lawmakers — they were Congressman Sam LiCcardo, a Democrat who introduced legislation in February to prevent elected officials from making profits through their own cryptocurrencies and certain other assets.
“Without a Congressional approval seal or not, it’s clear that Trump’s adult program and Stablecoin program don’t seem to be suppressed by any concerns that people may have,” LiCcardo said. “Even if we’re completely thinking about the language I want in the bill that bans Trump, we don’t have a Justice Department that is going to sue the president or anyone around him who violates the law.”
The Justice Department also did not respond to a request for comment.
LiCcardo said that while the Genius Act may not be perfect, there is a desperate need to curb the compromise that the stable market in the Wild West requires. “If we go through nothing, we will continue to have great uncertainty about who can adjust and how to do it,” he explained. “I don’t think it wants to make perfect an enemy of goodness.”
