According to Circle’s chief strategy officer Dante Disparte, the Genius Act contains a well-known clause that prevents tech giants and Wall Street behemoths from dominating the Stablecoin market.
“Genius behavior has something I want to call it – just for my own legacy – Libra terms,” Tell Saturday’s podcast. Any fixed token of a non-bank that wants to mint the dollar must rotate “a independent entity that looks more like a circle, not like a bank”, with clear antitrust barriers and facing a veto-door committee.
Banks will not get a free pass either. A stable issuing lender must place it in a legal subsidiary and keep the coins on a “balance sheet without risk, no leverage, no loans,” Disparte notes.
The structure is even “more conservative” than JPMorgan and others have surfaced. He added: “This creates clear rules and I think the ultimate biggest winner is the consumer and market participants in the United States, frankly, the dollar itself.”
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Genius Act passed through bipartisan support
Passed last week More than 300 votesincluding support from 102 Democrats Guiding and establishing national innovation for the United States’ Stability Act (Genius) Act Disparte believes that the US dollar “rules-based” firepower is provided in the global digital currency competition.
“Cryptocurrencies finally get what they want: legalization, pathways to clarity in the United States and opportunities for competition,” he said.
The bill retains a pie-in-one $10 billion signing tax against issuers, but requires that assets that violate that level are in violation of assets.
It is worth noting that the law prohibits holding stablecoins with interest, pushing for strict disclosure standards and introducing criminal penalties for non-resistance “stable” tokens. Disparte said the Terra-style experiment “disappeared.”
However, critics argue that banning yields could prevent consumer adoption and bring advantages to overseas issuers. Disparte claims that once the base layer of rock is fixed, the dispersed financial scheme can better provide benefits “is secondary market innovation.”
Related: Bank of England governor warns of stable private issuance
Defi grew when the genius ban was launched
The Genius Act prohibits stables who assume surrender may redirect investors to Ethereum’s demand Decentralized Finance (DEFI) platform.
No interest incentives are in stability, defi becomes the main choice To generate passive income, they predicted that the “Stablecoin Summer” may now evolve into “Defi Summer,” according to analysts such as Nic Puckrin and Christopher Perkins of Coinfund.
The ban is particularly important for institutional investors. Unlike retail users, financial institutions have a fiduciary obligation to generate returns, which makes earning opportunities crucial. Analysts believe this could lead to a surge in institutional capital flowing into DEFI, especially on Ethereum, which mainly locks in the overall value of the industry.
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