Implications of the US Stablecoin Legislation: Expert Opinions
On May 19, the US Senate approved the cessation of debates on the GENIUS Act, a bill introducing a new regulatory framework for the stablecoin market. ForkLog gathered expert opinions on the matter.
Alexey Zyuzin, CEO of Crypto Summit, believes that “the US is demonstrating its ambition to lead the industry and establish the dollar as the key unit of account in the digital economy.”
However, he notes potential issues:
“The bill enshrines the ability to freeze funds and block transactions at the regulators’ request, which distances the market from the principles of decentralization.”
The speaker pointed out that major issuers like Tether already freeze addresses at the authorities’ request. According to Zyuzin, the GENIUS Act merely formalizes this approach at the legislative level.
Vugar Usy Zade, COO of Bitget, is confident that new licensing standards and reserve requirements will enhance trust and protect users, but will also raise entry barriers.
He believes this will accelerate market consolidation, giving an advantage to large projects with sufficient resources to meet all requirements.
However, the regulation does not affect major offshore stablecoins like USDT. This leaves them with flexibility but makes them vulnerable to pressure from US regulators.
Alexander Peresichan, CEO of Tehnobit, believes the GENIUS Act could alter the market share distribution among major players. According to him, Circle, as an American company, will be obliged to comply with the law, while Tether will formally remain outside US jurisdiction, posing additional risks for the issuer and holders.
“For institutional investors, GENIUS establishes an ‘approved’ standard, strengthening USDC’s position,” he emphasized.
As a result, the market may split: some tokens will be regulated within the strict US framework, while others will strive to maintain autonomy outside the country, noted Peresichan.
According to libertarian economist Yevgeny Romanenko, officials, under the guise of protecting users, aim to take control of stablecoins and the market as a whole. He is confident that regulatory pressure will lead to Tether losing ground not only in Europe and Russia but also in the US. USDC is likely to fill the gap in the States.
Romanenko believes that the adoption of new laws will not reduce demand for stablecoins; on the contrary, people will increasingly consider the qualities of exchange media and gradually transition to “proper cryptocurrencies” with non-custodial storage, such as Bitcoin.
Moreover, the expert sees no connection between the stablecoin market and demand for US government bonds — interest in them is driven by the country’s spending and central bank policy. Amid the accelerated growth of national debt, this issue becomes increasingly relevant, but stablecoins do not play a key role in this dynamic, the speaker concluded.
According to trader and author of the Telegram channel Coen+, Vladimir Cohen, the new law will strengthen the dollar’s position in the crypto economy.
“In the event of an issuer’s bankruptcy, stablecoin holders will have priority over other creditors. This will increase trust in the instrument: issuance volume could exceed $1 trillion in two years,” the expert noted.
However, the law creates barriers for startups and foreign companies. Issuers are required to register in the US, meet capital, liquidity, and risk management standards, and refrain from issuing stablecoins backed by crypto assets or algorithms — such projects are banned for the next two years, Cohen emphasized.
“The purpose of the GENIUS Act is to increase demand for the dollar and US government debt. This is not just regulation, but a geopolitical tool,” concluded the trader.
In May, Senator Elizabeth Warren called for a review of the GENIUS Act to ensure corporations “cannot issue their own money.”
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