“Competition will be fierce,” says Christian Catalini, founder of Mit Cryptoeconomics Lab and co -creator of Diem, a non -existent Stablecoin project financed by META. “You will see that many other issuers enter the market and compete. Many of these issuers will be more traditional banks and fintechs.”
Proponents of cryptocurrencies to argue that Stablecouins will strengthen the American dollar as a global reserve currency by increasing demand in developing countries with unstable economies and allow the USA to cheaply borrow by squeezing demand for government bonds. “You can’t find better innovation for Greenback on the board,” says Christopher Perkins, president of Crypto VC Coinfund.
However, Stablecoin proliferation may destabilize the financial system if the regulatory authorities do not maintain adequate supervision, Critics warned. For example, if the chief issuer had a fatal impact of Stablecoin reserve, which led to the collapse of the value of the coin and the potential course of other stableleins, the value of government bonds could be forced to force themselves when the issuers are forced to eliminate their reserve principles to cover the appeal, leaving taxpayers to the hook for payment for payment.
“I am very careful in relation to the steps to basically integrate a private currency with the financial system. At the bottom he represents,” says Jacob Silverman, co -author of the book Simple money: cryptocurrency, casino capitalism and the golden age of fraud.
Another widespread opposition to the Genius Act concerns the lack of all provisions that would prevent Trump and his family from profits from his own stableleins.
In May, World Liberty Financial announced that his Stablecoin will be used by the MGX investment company, which is financed by the United Arab Emirates to make an investment of $ 2 billion in Binance, the world’s largest cryptographic exchange. The company related to Trump can earn tens of millions of dollars from the contract, which caused complaints among critics who claimed that the transaction was a “foreign policy for sale”.
“Omaging the act on genius, politicians bless the corruption of President Trump,” says Silverman. “We want to protect consumers, but I don’t think [crypto] It should be further legitimized in the USA until the situation with Trump’s cryptocurrency and the Republican party is resolved. “
The White House did not answer the request for comment.
However, when the Chamber came to vote on Thursday, even the legislators who previously opposed the crypt of Trump – I have their Democratic Congressmen Sam Liccardo, who in February in February introduced regulations to prevent profits from being derived by selected officials with their own cryptographic coins and some other assets – lifted after the Genius Act.
“Regardless of whether there is a congress seal of approval or not, it is obvious that the Trump Memecoin program, and now Stablecoin, they seem to not lie to any fears that people may have,” says Liccardo. “Even if we have exactly the language that I wanted to prohibit Trump in this bill, we do not have the Department of Justice that will ever prosecute this president or everyone around him for violating this law,” he adds.
Dojat also did not answer the request for comment.
Although the Genius Act may be imperfect, the urgent need to stop the Stablecoin market “Wild West” required a calculated compromise, says Liccardo. “If we don’t pass anything, we still have great uncertainty about who can regulate and how,” he explains. “I see it as I don’t want to make a great enemy a good enemy.”