US government approves GENIUS Act - $260 billion stablecoin market is now legal in US 🇺🇸
GENIUS Act Unleashes Dollar Stablecoins - Why US and UAE Now Dominate
GENIUS Act just passed Senate.
Most pro-crypto move from US in 10+ years.
GENIUS Act creates federal framework for dollar stablecoins.
And it makes US competitive again.
I explain:
- Only licensed banks, fintechs, or state-qualified issuers can issue stablecoins
- Reserves must be 1:1 in cash, Treasury instruments, or Fed balances
- Monthly audits & redemption rules are mandatory
- Federal licensing pre-empts state MTLs – with passporting across states
- Custodians must be federally supervised trust banks
- Treasury has full oversight on foreign stablecoins
This ends gray zone.
And it gives Tether, Circle and PayPal green light to operate at scale.
I see one flaw:
You take on the risk of collateral backing stablecoin…
But you CAN’T get the yield.
Stablecoins are backed by interest-bearing U.S. Treasuries.
Yet under GENIUS - you can’t receive interest.
As my friend Phillip Moran, CFA said:
“You bear the risk of collateral, but none of the reward.”
Collateral is public and conservative.
Audits are mandatory.
Risk is minimal.
Why block stablecoins from paying yield?
That makes no sense.
I explain what stablecoins are actually used for:
- $1T+ monthly volume
- 90%+ used by hedge funds, prop firms, market makers
- For rebalancing liquidity, moving capital between venues, and collateral posting
Less than 10% is used for retail payments or remittances.
GENIUS is win for professional liquidity flows.
And warning to Europe.
MiCA still limits daily redemptions & mandates 60% reserves in fragile EU banks.
UAE already approved first regulated AED stablecoins.
Future is clear:
- U.S. + UAE will lead crypto industry
- MiCA will put Europe behind
Founders, investors, builders:
If you’re serious about stablecoins…
Build in U.S.
Or build in UAE.
Everything else is noise.👇