GENIUS Act Set to Boost Dollar Strength and Shape Digital Finance Future

by Team Crafmin
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The United States is on the brink of a major shake-up in the way it manages digital money. A new piece of legislation, the GENIUS Act, could not only tighten oversight of stablecoins but also put fresh wind in the sails of the US dollar in the digital age. The bill, having already cleared a key Senate hurdle, now awaits a final decision before it can move to the House of Representatives.

Short for the Guiding and Establishing National Innovation for US Stablecoins Act, the GENIUS Act aims to put a firm framework in place for stablecoin regulation. These tokens, pegged to traditional currencies like the US dollar, are designed to hold steady value and serve as a more stable alternative to volatile digital coins such as Bitcoin.

If passed, the Act would require stablecoin providers to register with the federal government. Issuers would also need to guarantee their tokens are backed one-to-one by fiat currency reserves, undergo regular audits, and comply with anti-money laundering laws. This approach would bring the market under a clear set of rules, closing loopholes that have existed for far too long.

 

Image 1: (Source: PANews)

Linking Traditional Finance to the Blockchain

Roshan Robert, who leads OKX US, views this as a pivotal move. In his eyes, the bill builds a practical bridge between traditional finance and digital innovation. It would allow established financial institutions to engage more confidently with blockchain technologies, particularly for cross-border payments and faster settlements.

Stablecoins are increasingly seen as key players in digital trade. Their ability to speed up international transactions while cutting fees is a drawcard, especially in developing regions. If tied closely to the US dollar and supported by regulation, these coins could further extend the greenback’s reach, even in places where American banks don’t operate.

Mike Cahill, the CEO at Douro Labs, sees this bill as opening the door to more secure and programmable money. He believes having a national legal structure could make stablecoins more widely accepted, not just as tools for traders, but as instruments for mainstream finance and treasury management.

A Global Financial Blueprint in the Making

What makes this bill particularly significant is its potential to rewrite global standards. The US has long held the reins in international finance. With this law, it could set the benchmark for how digital assets are handled across borders. By laying down the rules early, America may end up writing the playbook for others to follow.

For many in the crypto world, such a development has been a long time coming. Paul Grewal, Chief Legal Officer at Coinbase, believes it brings long-needed certainty. Many digital firms have called for regulatory clarity, and this Act could finally draw a clear line in the sand.

Though not everyone in the political arena is on the same page, most agree the financial world is changing fast. The GENIUS Act is seen as a way for the US to stay ahead of the curve rather than playing catch-up. With strong support from the Trump administration, the bill signals a broader government shift toward recognising the importance of blockchain-based finance.

 

Image 2: (Source: Ledger Insights)

Boosting the Dollar’s Digital Influence

There’s also a strategic edge to the bill. As other countries talk of moving away from the dollar—known as de-dollarisation—this law could help the US tighten its grip on global trade. By backing dollar-pegged stablecoins with legal structure, the US might deepen its influence at a time when some critics suggest its dominance is slipping.

Currently, the stablecoin space is led by Tether’s USDt and Circle’s USDC, both pegged to the dollar. Together, they account for more than 85% of the market. Their prominence, paired with the support of this new law, could solidify the dollar’s role in the growing digital finance ecosystem.


Bill Sebell from the XDC Foundation highlighted that if this bill becomes law, the dollar could gain even more traction as a digital currency. With smartphones in nearly every hand, digital dollars could soon be used in everyday payments, no matter where users are based.

Addressing Conflicts and Building Confidence

Concerns about possible misuse haven’t gone unnoticed. Senator Elizabeth Warren has been particularly vocal, worrying that without proper checks, the law could open the door to personal gains for political figures. She’s flagged the risk of self-dealing, especially for those with ties to Trump-linked crypto ventures.

Read Also: Historic Vote: U.S. Senate Moves Forward on GENIUS Act for Stablecoin Regulation

In response, an amendment has been floated that would block public officials and their families from issuing stablecoins. This change is intended to remove any shadow of conflict and improve public trust in the system. It’s a move aimed at ensuring the law serves the broader economy and not private interests.

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