GENIUS Act Reshapes the Future of Stablecoin Utility
The post GENIUS Act Reshapes the Future of Stablecoin Utility appeared on BitcoinEthereumNews.com. Companies like Mastercard, PayPal, and Polygon are already building infrastructure to support this shift, with Polygon reporting massive growth in small and micropayment volumes. The act is expected to accelerate mainstream adoption, particularly through user-friendly platforms and DeFi innovation. Stablecoins Face a New Era Under the GENIUS Act The GENIUS Act was recently passed with broad bipartisan support in the US House of Representatives, and it is poised to reshape the stablecoin landscape by establishing the country’s first federal framework for these digital assets. With over 300 House votes, including backing from 102 Democrats, the legislation creates a clear distinction between stablecoins used for generating yield and those intended for payments. This regulatory clarity is drawing comparisons to the EU’s Markets in Crypto-Assets (MiCA) framework and is seen as a major step toward global regulatory consensus. Fabian Dori, the chief investment officer at Sygnum, explained in an interview that the impact of the GENIUS Act goes far beyond compliance. He believes the act will give issuers and organizations the confidence to innovate and build next-generation payment applications that go beyond current use cases. Fabian Dori Rather than chasing returns through interest-bearing models, stablecoin issuers are now expected to lean into the utility aspects of stablecoins—like real-time settlement, low transaction fees, and programmability. Dori pointed out that tokenized money market funds are better suited for yield-seeking investors, offering stable value and daily liquidity backed by US Treasury products, while maintaining a clear separation from transactional stablecoins. The industry is already responding to the shift. Major players like Mastercard and PayPal already began laying the groundwork for compliant stablecoin usage, and retail giants like Amazon and Walmart are exploring applications in payroll and cross-border payments. Jason Lau, chief innovation officer at OKX, believes that in the new regulatory landscape, “utility beats yield,”…
The post GENIUS Act Reshapes the Future of Stablecoin Utility appeared on BitcoinEthereumNews.com.
Companies like Mastercard, PayPal, and Polygon are already building infrastructure to support this shift, with Polygon reporting massive growth in small and micropayment volumes. The act is expected to accelerate mainstream adoption, particularly through user-friendly platforms and DeFi innovation. Stablecoins Face a New Era Under the GENIUS Act The GENIUS Act was recently passed with broad bipartisan support in the US House of Representatives, and it is poised to reshape the stablecoin landscape by establishing the country’s first federal framework for these digital assets. With over 300 House votes, including backing from 102 Democrats, the legislation creates a clear distinction between stablecoins used for generating yield and those intended for payments. This regulatory clarity is drawing comparisons to the EU’s Markets in Crypto-Assets (MiCA) framework and is seen as a major step toward global regulatory consensus. Fabian Dori, the chief investment officer at Sygnum, explained in an interview that the impact of the GENIUS Act goes far beyond compliance. He believes the act will give issuers and organizations the confidence to innovate and build next-generation payment applications that go beyond current use cases. Fabian Dori Rather than chasing returns through interest-bearing models, stablecoin issuers are now expected to lean into the utility aspects of stablecoins—like real-time settlement, low transaction fees, and programmability. Dori pointed out that tokenized money market funds are better suited for yield-seeking investors, offering stable value and daily liquidity backed by US Treasury products, while maintaining a clear separation from transactional stablecoins. The industry is already responding to the shift. Major players like Mastercard and PayPal already began laying the groundwork for compliant stablecoin usage, and retail giants like Amazon and Walmart are exploring applications in payroll and cross-border payments. Jason Lau, chief innovation officer at OKX, believes that in the new regulatory landscape, “utility beats yield,”…
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