GENIUS Law Set US Stablecoin Rules wit 100% Reserves but lef Foreign Loophole
Congress don pass GENIUS Act wey introduce di first full US stablecoin regulation. Di stablecoin regulation go help boost trust and make am mainstream. Di law require 100% reserve backing for cash or better assets, strict AML/KYC controls, monthly reserve disclosure, and yearly PCAOB audit for big issuers. E set dual oversight: Fed and OCC go dey check issuers wey get over $10 billion, state regulators go dey deal with smaller ones, plus give holders priority when bankruptcy show. Dem ban yield-bearing stablecoins to protect consumers but e fit make users go DeFi. One big loophole dey wey exempt offshore issuers like Tether, dem need only follow some undefined ‘comparable’ standards. Tether don promise say dem go comply plus plan make domestic stablecoin. Di Act open stablecoin issuance to banks and retailers, like Bank of America and Amazon, e fit increase demand for US Treasuries. Traders suppose watch market share move to compliant alternatives and sharp changes when transition dey happen.
Neutral
Short-term, di GENIUS Act fit cause volatility as traders dem go rebalance towards stablecoins wey comply like USDC plus new corporate issuers. Di undefined foreign issuer standards fit make USDT still hold e market share, limit winners wey fit show quickly. Long-term, clearer stablecoin regulation plus 100% reserves fit boost trust and make mainstream adoption easier, benefit regulated issuers and raise demand for US Treasuries. But di loophole wey dey for offshore issuers go dey cause uncertainty steady, balance di bearish and bullish force dem make market impact neutral.