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Crypto Week: A Recap
The recently concluded Crypto Week was a massive success, with exciting developments in the world of cryptocurrency.
President Donald Trump made headlines by signing the GENIUS bill into law, marking a significant milestone for the crypto industry. This legislation is focused on stablecoins and sets the stage for further advancements in the field.
However, the journey doesn’t end here. Two other crucial pieces of legislation, namely the CLARITY Act and the anti-CBDC bill, are currently in the pipeline in Washington, DC.
During a recent episode of the Empire podcast, Alexander Grieve from Paradigm shared his insights on the GENIUS bill, describing it as a fundamental starting point for Congress. He highlighted how the legislation was relatively easy for legislators to grasp and support.
On a lighter note, Grieve mentioned an interesting anecdote about the unexpected support for the GENIUS bill from a group of KFC franchisees who championed the benefits of stablecoins in driving down payment and interchange costs.
The Impact of GENIUS
One common theme that emerges from discussions within the industry is the pivotal role of the GENIUS bill in catalyzing institutional involvement in the crypto space.
Major financial institutions like Bank of America and Charles Schwab have expressed interest in stablecoins, with the former reiterating its stance in a recent earnings call. This signals a growing appetite for stablecoin adoption among traditional players.
However, it’s important to note that the GENIUS legislation sets specific criteria for stablecoin issuers. Companies that do not have financial services as their core business may not be eligible to issue stablecoins under the new regulations.
According to Grieve, this restriction means that non-financial companies looking to enter the stablecoin market will need to collaborate with existing issuers, maintaining a clear separation between the customer-facing entities and the issuers themselves.