TechFlow news, August 1 — According to Cointelegraph, the U.S. GENIUS Act marks the establishment of America's first comprehensive regulatory framework for stablecoins. The bill requires stablecoin issuers operating within the United States to meet strict requirements regarding reserves, disclosure of information, and compliance with sanctions, but regulatory standards for foreign-based issuers remain unclear.
The bill also prohibits stablecoin issuers from paying interest or returns to holders. The U.S. Treasury estimates that the market capitalization of dollar-backed stablecoins could grow from the current $267 billion to $2 trillion. Several industry experts believe the legislation will encourage traditional financial institutions to participate in the stablecoin market, but its ambiguous provisions regarding overseas issuers may lead to regulatory arbitrage.
