GENIUS Law Define US Stablecoin Regulation, No Allow Yield Tokens
US Congress don pass GENIUS Act wey establish di first federal framework for fiat-back stablecoins. Di law set strict stablecoin regulation: issuers suppose get federal license, hold 1:1 reserves for top quality liquid assets, make independent reserve audits, and show full transparency. Di Act still ban yield-bearing stablecoins. Di ban na to separate payment-focused tokens from tokenized money-market products and reshape how DeFi balance between pure payment tokens and yield products be. Fabian Dori, CIO at Sygnum Bank, talk say dis new stablecoin regulation go give legal certainty, boost institutional adoption, and promote responsible innovation plus financial stability. Compared to Europe wey dey cautious with digital euro, US dey favor innovation. Crypto traders suppose watch licensing timelines, reserve disclosures and stablecoin usage changes to check potential market moves.
Bullish
Di clear stablecoin regulation wey di GENIUS Act get dey reduce legal wahala. Dis better framework fit make plenty institutions wan buy and dem go use am well for market. Even though di ban against tokens wey dey give yield fit stop some short-term DeFi yield plans, e good for stablecoins wey get fiat back. For long-term, clear rules fit make new people begin issue stablecoins and e go make market solid, wey go make price steady go up. Before, when regulation clear, institutions dey put money more, e mean stablecoin trading and market go better.