The United States Congress plans to pass crucial cryptocurrency legislation during this week which will bring regulatory clarity and move the industry toward traditional financial acceptance. The bipartisan GENIUS Act serves as the main bill because it creates federal stablecoin regulations which will move through the House before reaching President Trump for signature.
Under the new legislation stablecoin issuers must maintain liquid reserves of U.S. dollars and Treasury bills while being required to publish their reserve compositions on a monthly basis. The implementation of this regulation would lead to increased acceptance of the asset class by banks and businesses which would enable them to safely use stablecoins in their operations.
A separate bill under review establishes criteria to determine which crypto tokens qualify as commodities which would resolve the existing regulatory ambiguity that has restricted innovation and investment opportunities.
The current uncertainty that forced institutions to step back from the market now makes them more inclined to return according to Bitfinex representative Jag Kooner. The recent price increase of Bitcoin stems from expectations that the new legislation will establish new financial opportunities.
The bills gained support from Republicans while some Senate Democrats chose to support them. Some lawmakers maintain opposition because they believe the proposed measures fail to protect consumers adequately and would primarily benefit large technology companies seeking crypto opportunities.
The enactment of these new laws would establish a fundamental change in how the United States governs cryptocurrencies.
