GENIUS Act

[zasad@]

Treasury Secretary Scott Bessent(C)
79th United States Secretary of the Treasury
https://x.com/SecScottBessent/status/1935027160374210573
"Recent reporting projects that stablecoins could grow into a $3.7 trillion market by the end of the decade. That scenario becomes more likely with passage of the GENIUS Act.

A thriving stablecoin ecosystem will drive demand from the private sector for US Treasuries, which back stablecoins. This newfound demand could lower government borrowing costs and help rein in the national debt. It could also onramp millions of new users—across the globe—to the dollar-based digital asset economy.

It’s a win-win-win for everyone involved:

✅The private sector
✅ The Treasury
✅ Consumers

These are the fruits of smart, pro-innovation legislation."

Key Points:

◽️AML/KYC – Requires compliance with anti-money laundering standards and customer identification for large transactions.

◽️Transaction Freezing – The US Treasury is given the authority to block suspicious transactions, and issuers must have mechanisms to freeze transfers.

◽️Separation of Supervision – Stablecoin issuers with a market cap of up to $10b are regulated by states, while larger ones are regulated by federal agencies, but may remain under government supervision if conditions are met.

◽️Reserves – Stablecoins must be backed by liquid assets (cash, deposits, and US government bonds).

◽️Transparency – Stablecoin issuers are required to publish monthly reports on liquidity and reserve composition.

[Free Market Capitalist]

What this will do is make it easier for the US to export its dollars. When people can access to buy dollars with worse currencies easily and from their mobile, the demand is going to explode. In the EU they know this and that is why they have banned USDT.

[btc-freedom-money]

Separation of Supervision - Makes stablecoins almost same thing as cbdc.
AML/KYC - No privacy.
Transaction Freezing - They will freeze all stablecoins that are anonymous. They say they only require AML/KYC for large transactions but that's just officially. They also in the shadows do mass surveillance with coinanalysis to track all transactions and if a transaction is anonymous they will freeze it.

This is bad news but it's always bad news when there is progress with regulations. Crypto is meant to be unregulated and censorship resistant.

I will never use a stablecoin again. Expect many bitcoiners to be mad when they sell their bitcoin before bear season starts. Their stablecoins will be frozen.

[zasad@]

What this will do is make it easier for the US to export its dollars. When people can access to buy dollars with worse currencies easily and from their mobile, the demand is going to explode. In the EU they know this and that is why they have banned USDT.

Do you think this is a problem for Tether?
Read the latest news on their website.
https://tether.io/
The company is working on new stablecoins for Europe and is also actively investing in platforms for asset tokenization.

I will never use a stablecoin again. Expect many bitcoiners to be mad when they sell their bitcoin before bear season starts. Their stablecoins will be frozen.

I think there will always be an alternative in the form of stablecoins like DAI.

[Free Market Capitalist]

Do you think this is a problem for Tether?

No, on the contrary, it is a problem for the EU, which is trying to crush everything that can compete with CBDCs. I believe that eventually they will have to capitulate but in the meantime they will put as many roadblocks in the way as they can.

[BitGoba]

One thing is certain  these are not stablecoins  they’re actually unstable, inflationary coins. Their purchasing power melts away like an ice cube under the spring sun. Unfortunately, many people don’t understand this and live under the illusion that these coins are truly “stable.”

[Free Market Capitalist]

One thing is certain  these are not stablecoins  they’re actually unstable, inflationary coins. Their purchasing power melts away like an ice cube under the spring sun. Unfortunately, many people don’t understand this and live under the illusion that these coins are truly “stable.”

Well, it depends. Stablecoins that are pegged to currencies like the dollar are very stable for people in developing countries. The point is that the inflation of the dollar is much lower than that of the Venezuelan bolivar or the Turkish lira, and therefore if someone from those countries acquires USDT for example it keeps its value more stable. The stability of the name does not refer so much to the loss of value as to the absence of volatility.

[zasad@]

Do you think this is a problem for Tether?

No, on the contrary, it is a problem for the EU, which is trying to crush everything that can compete with CBDCs. I believe that eventually they will have to capitulate but in the meantime they will put as many roadblocks in the way as they can.

And don't you notice some oddities that despite the politics and disagreements between countries CBDC is actively being introduced in all countries almost simultaneously?
If you think locally, you can talk about countries, but if you go a level higher, you can fantasize about a new digital future.

Quantum Financial System (QFS)
https://www.youtube.com/watch?v=FsfkLWur-wM

[bbc.reporter]

I have already created a thread for discussion of stablecoins bills and laws including the Genius act.

https://bitcointalk.org/index.php?topic=5542218.0

I reckon we should collect all discussion there to avoid duplications of discussions. I am very much aware that many people in the forum want to meet their weekly quota for their signature campaigns, however, we should also not spam the forum with these duplicate threads.

[Free Market Capitalist]

I have already created a thread for discussion of stablecoins bills and laws including the Genius act.

https://bitcointalk.org/index.php?topic=5542218.0

I reckon we should collect all discussion there to avoid duplications of discussions. I am very much aware that many people in the forum want to meet their weekly quota for their signature campaigns, however, we should also not spam the forum with these duplicate threads.

I don't agree with that. As long as one thread is not a duplicate of the other it doesn't break any rules, and I don't see any better to concentrate all the discussion in one.

It got to the absurdity of someone asking for all threads about Donald Trump to be merged into one. By the same token we could ask that all threads about bitcoin be merged into one.

To me it's better to have several as long as they focus on different points of view. When a thread gets too long people lose focus on the main issue, and to avoid that better to have diverse threads. If yours is good enough it will be the most commented and the one that will last the longest.

[cabron]

What this will do is make it easier for the US to export its dollars. When people can access to buy dollars with worse currencies easily and from their mobile, the demand is going to explode. In the EU they know this and that is why they have banned USDT.

Do you think this is a problem for Tether?
Read the latest news on their website.
https://tether.io/
The company is working on new stablecoins for Europe and is also actively investing in platforms for asset tokenization.

I will never use a stablecoin again. Expect many bitcoiners to be mad when they sell their bitcoin before bear season starts. Their stablecoins will be frozen.

I think there will always be an alternative in the form of stablecoins like DAI.

Tether is creating a stablecoin like EUR for the EU? How odd is that, it should be a company from EU also that should create this or else, it would only mean Tether controls the EUR. EU is doomed in that case.

Stablecoin is going to be the main currency for all because this is what merchants will prefer to received. However this is going to make you visible to the companies issuing the stablecoins.  If surveillance is that he is concern about, its too late. Stabelcoins is the real CBDC.

[WatChe]

This is bad news but it's always bad news when there is progress with regulations. Crypto is meant to be unregulated and censorship resistant.

I will never use a stablecoin again. Expect many bitcoiners to be mad when they sell their bitcoin before bear season starts. Their stablecoins will be frozen.

It should be but that's not the case when it comes to government regulations. There is very rear chance that governments will allow any crypto in the country which they can't control. Legislation just overpowers the concept of 'censorship resistance' while make crypto very much centralised. As long as consumers are comfortable with KYC/AML and other points highlighted in OP there is no reason for government to go against crypto. To me that's just another CBDC.

[zasad@]

What this will do is make it easier for the US to export its dollars. When people can access to buy dollars with worse currencies easily and from their mobile, the demand is going to explode. In the EU they know this and that is why they have banned USDT.

Do you think this is a problem for Tether?
Read the latest news on their website.
https://tether.io/
The company is working on new stablecoins for Europe and is also actively investing in platforms for asset tokenization.

I will never use a stablecoin again. Expect many bitcoiners to be mad when they sell their bitcoin before bear season starts. Their stablecoins will be frozen.

I think there will always be an alternative in the form of stablecoins like DAI.

Tether is creating a stablecoin like EUR for the EU? How odd is that, it should be a company from EU also that should create this or else, it would only mean Tether controls the EUR. EU is doomed in that case.

Stablecoin is going to be the main currency for all because this is what merchants will prefer to received. However this is going to make you visible to the companies issuing the stablecoins.  If surveillance is that he is concern about, its too late. Stabelcoins is the real CBDC.

"Stablecoins are real CBDCs" - I strongly disagree with this statement.
CBDCs are issued and controlled by the country's central bank, while stablecoins are issued and controlled by a commercial company.
For example, if you live in Europe, your central bank
can very quickly force Tether to block the EUR stablecoin, but your central bank will not be able to quickly block the USDT stablecoin.

[zasad@]

The Bank for International Settlements (BIS) has criticized stablecoins:
https://www.bis.org/publ/arpdf/ar2025e3.htm
"Tokenisation represents a transformative innovation to both improve the old and enable the new. It paves the way for new arrangements in cross-border payments, securities markets and beyond.
Tokenised platforms with central bank reserves, commercial bank money and government bonds at the centre can lay the groundwork for the next-generation monetary and financial system.
Stablecoins offer some promise on tokenisation but fall short of requirements to be the mainstay of the monetary system when set against the three key tests of singleness, elasticity and integrity."
AI:

Stablecoins fail 3 key tests:
Unity: each token depends on the issuer and can be traded at different rates.
Elasticity: the issue requires 100% pre-collateral.
Integrity: not all comply with KYC/AML standards.

According to BIS experts, stablecoins:
Undermine the monetary sovereignty of states.
Can facilitate financial crimes.
Are not suitable as the basis of a monetary system.

However, they have advantages:
Programmability.
Convenience for new users.
Fast and cheap transfers (especially cross-border).

P.S. After the publication of the report, Circle shares fell by 15%.

[FP91G]

The Big Loser From the ‘Genius Act’ Is $156 Billion Crypto Giant Tether
Bill laying out rules for stablecoins would force issuers like Tether to be audited and end risky practices

Congress is set to bring stablecoins into the financial mainstream, with legislation that has sparked a frenzy of interest from startups, banks and even retailers like Walmart that were previously wary of cryptocurrencies.

But the bill, known as the Genius Act, has a tough message for Tether, the No. 1 player in stablecoins: Shape up or get kicked out of the U.S. market.
link

[btcinfo891]

And don't you notice some oddities that despite the politics and disagreements between countries CBDC is actively being introduced in all countries almost simultaneously?

That is not really odd, but rather an expected development. Every government tries to increase its control over its citizens because it simplifies the lives of the government officials and as a whole makes the government more stable (or at least that is what they think).

Being able to control the citizens' payments is essentially the ultimate level of control that a government can exercise over its citizens. If the government wants to find out that a citizen thinks, it doesn't have to bug the citizen's phone, doesn't have to employ spies to track each step of the citizen. Instead the government can just check the list of websites that the citizen visits regularly and check the list of purchases that they make. And the latter can easily be obtained in a world without physical money, where all purchases are made solely through electronic government-controlled money.

That is why each government jumped at the opportunity to replace physical cash with CBDCs as soon as the technology matured enough to make that possible. There is no conspiracy, it's just that all governments are alike and think in the same way.

[zasad@]

And don't you notice some oddities that despite the politics and disagreements between countries CBDC is actively being introduced in all countries almost simultaneously?

That is not really odd, but rather an expected development. Every government tries to increase its control over its citizens because it simplifies the lives of the government officials and as a whole makes the government more stable (or at least that is what they think).

Being able to control the citizens' payments is essentially the ultimate level of control that a government can exercise over its citizens. If the government wants to find out that a citizen thinks, it doesn't have to bug the citizen's phone, doesn't have to employ spies to track each step of the citizen. Instead the government can just check the list of websites that the citizen visits regularly and check the list of purchases that they make. And the latter can easily be obtained in a world without physical money, where all purchases are made solely through electronic government-controlled money.

That is why each government jumped at the opportunity to replace physical cash with CBDCs as soon as the technology matured enough to make that possible. There is no conspiracy, it's just that all governments are alike and think in the same way.

I will tell you a few arguments.
Control of all citizens requires very large expenses, and there is no point in controlling all citizens. It is enough to control only a part of the population.
The most effective control system in the world is payment to agents, informants for useful information. In the USA this is very actively used, and it is used in many countries.
Even if cash is banned, which is simply unrealistic in many countries, then cryptocurrencies cannot be banned.

[freedomgo]

The Big Loser From the ‘Genius Act’ Is $156 Billion Crypto Giant Tether
Bill laying out rules for stablecoins would force issuers like Tether to be audited and end risky practices

Congress is set to bring stablecoins into the financial mainstream, with legislation that has sparked a frenzy of interest from startups, banks and even retailers like Walmart that were previously wary of cryptocurrencies.

But the bill, known as the Genius Act, has a tough message for Tether, the No. 1 player in stablecoins: Shape up or get kicked out of the U.S. market.
link

I think regulation is fair in this case because from the start, USDT has always been tied to the US dollar, which is the most powerful currency globally ( i think)... The law just formalizes things to protect users and ensure that every token is backed 1:1 with real USD. And, the US benefits since the issuer needs to purchase treasury bonds, which indirectly strengthens their economy.

But now, there’s a big difference compared to before. Even though USDT still uses the crypto network for transactions, it’s practically like a bank now. Anyone using it is subject to audits, strict KYC, and anti-money laundering checks, so privacy is basically gone in this area.

Another thing is that issuers can’t offer staking or interest-bearing services anymore because the law is very strict on that. It looks like they only want these issuers to make money from transaction fees and nothing else.

[zasad@]

I think regulation is fair in this case because from the start, USDT has always been tied to the US dollar, which is the most powerful currency globally ( i think)... The law just formalizes things to protect users and ensure that every token is backed 1:1 with real USD. And, the US benefits since the issuer needs to purchase treasury bonds, which indirectly strengthens their economy.

But now, there’s a big difference compared to before. Even though USDT still uses the crypto network for transactions, it’s practically like a bank now. Anyone using it is subject to audits, strict KYC, and anti-money laundering checks, so privacy is basically gone in this area.

Another thing is that issuers can’t offer staking or interest-bearing services anymore because the law is very strict on that. It looks like they only want these issuers to make money from transaction fees and nothing else.

All stablecoin issuers are now staking treasuries and they can share part of their profits with users
If Tether starts requiring KYC for every wallet, they will lose a huge part of their customers.
I also wonder when these stablecoins will be banned en masse in other countries, since they finance the US economy.

[yhiaali3]

Perhaps the most significant provision of the GENIUS Act that concerns the US government is the reserve clause, which states that "stablecoins must be backed by liquid assets (cash, deposits, and US government bonds)."

This is even more remarkable for the US government. Stablecoin companies will purchase all US government deposits and bonds, in addition to cash, of course, which means that all investors' money will eventually be converted into (cash, deposits, and US government bonds)!!!