The United States is currently prioritizing a draft law that focuses on Stablecoin as part of its broader effort to create a comprehensive regulatory framework for the encryption industry. The proposed legislation seeks to provide clear instructions for the issuance and management of Stablecoins – known as the National Guidance and Construction Law for Stablecoins (Genius). Recently, Senator Elizabeth Warren stressed the need for Stablecoin regulations to prevent private companies from creating their own copies of the US dollar.
Earlier this week, the draft law was approved by the Financial Services Committee in the House of Representatives, which submitted it to the Senate for the final approval. The encryption industry praised the development, describing it as a teaching moment to get to know the sector.
Paul Atkins, head of the SEC Checks Squad, has shown strong support for the Genitis bill. “We have all the expectation now after it passes,” said Atkins, in an interview with CNBC.
Since the momentum revolves around the law of genius, let us take a closer look at what this proposed legislation might mean for the future of the Stablecoin sector.
Bill Genius: Main Details
Bill was the genius first foot To American lawmakers in February this year. Tim Scott, Chairman of the Senate Banking Committee, is among the four sponsors of the proposed laws.
In clarifying the aspirations of these legislation, its sponsors said that the rules will establish clear protocols to direct the Stablecoins version in the United States. Institutions such as Meta may seek to obtain licenses for Stablecoins to comply with these states.
The rules will determine the reserve requirements for the current and potential Stablecoin Exporters, with the creation of systems to oversee and enforce business, examination and examination.
Sources are proposed to be widely of Stablecoin, to offer 10 billion dollars or banking companies under strict supervision by the Federal Reserve (for banks). Meanwhile, non -banking entities will be widely monitored by the currency observer office according to the draft law in a law by the Senate.
The states may obtain the right to organize smaller than the exporters of Stablecoin internally.
according to Senator Bell Hajari“The former administration’s hostility to encryption and refused to provide clear organizational guidelines has suffocated intense innovation.” He believes that this legislation can maintain the strong path of the state to issue Stablecoin.
The Financial Services Committee of the US House of Representatives approved the Stablecoin Law in April.
Stablecoin noise
The United States is among the many countries that are now Stablecoin as a Blockchain solution for rapidly border transfers.
Scott, head of the US Senate Banking Committee, believes that Stablecoins is a great progress in the financial sector.
He said: “Stablecoins managed to transactions faster, cheaper and competitive in our digital world and facilitate smooth payments across the border.” “From enhancing the efficiency of transactions to increased demand for US Treasury bonds, the potential benefits of strong Stablecoin innovation.”
US President Donald Trump himself is part of the Stablecoin USD1 version, indicating the support of the sector’s capabilities.
While the Stablecoin Bill continues to make its way through the legislative process in the United States, Hong Kong has approved its Stablecoin’s bill on May 21, which is scheduled to enter into force this year.
It also explores the traditional Fintech giants such as Visa, MasterCard and Paypal services offers related to Stablecoins.
Among the Blockchain specialties, Polygon plans to focus on Stablecoin plans this year, due to “high institutional demands”.
A recent report issued by Standard Charted that the size of the Stablecoin market could rise by about 10 times to 2 trillion dollars (about 171,29,830 rupees) during the next three years.
