Bitcoin

Trump’s Crypto Law Could Kill Decentralized Stablecoins

The American political landscape has just turned pro-Crypto – And that already makes waves on the Stablescoin market.

After Donald Trump’s victory over Kamala Harris in the presidential race, the new administration has not lost time to advance its friendly program. As promised, Trump has launched several pro-Crypto policies, including the creation of a special dry working group focused on the creation of a clear regulatory framework for cryptocurrencies.

Now, the spotlights are on the Act on Engineering – a historic Stablecoin bill which could redefine the future of digital finance in America.

What is the act of genius?

Stablecoins are digital assets fixed to fiduciary currencies such as the US dollar. With current market capitalization of more than $ 261 billion, stablecoins like Tether (USDT), USDC and USDS dominate this segment.

The law on engineering is a new law adopted to regulate this rapidly growing space. Although it may seem just another step in compliance, crypto experts as Quinten believe that its impact could be much more important – potentially remodeling that wins and loses in the cryptographic economy.

Key characteristics of the act of genius

The act present Strict regulations For stablecoin issuers. Here is what he changes:

  • Required license: All transmitters must be authorized by the federal or federal authorities.
  • Supported by safe assets: Stablecoins must be supported 1: 1 per Treasury in cash or the United States.
  • Monthly reserve reports: Transmitters must publish detailed monthly reserve data.
  • AML and KYC compliance: Complete membership in anti-flow And know your customer regulations.
  • No political affiliation: Transmitters should not be linked to political organizations.

However, criticisms have already raised eyebrows about the involvement of World Liberty Finance, who would have links with Trump’s family.

How could it encourage us to dominate stables

According to Quinten, the law on engineering provides essential legal clarity, in particular for banks and companies that seek to issue their own digital dollars.

His viral post on X claims that the law will lead to an increase in the adoption of stablescoin by large institutions.

Insider Buzz suggests that giants like Amazon, Apple, Walmart and JP Morgan are already preparing to enter the space of Stablecoin.

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Bad news for decentralized stablecoins?

Although the law supports institutional stables, it could crush decentralized projects.

Here is why:

  • Bachelor -free transmitters are prohibited of the operation in the United States
  • Government can freeze Stablecoin assets at will.
  • Non-compliance causes 5-year-old prison terms Or $ 1 million / fines day.

Quinten warns that this repression could fully push decentralized and foreign staboos on the American market.

Final reflections: Is genius the start of a new era?

The law on engineering marks a clear pivot in the policy of American cryptography – which promotes regulations, institutional adoption and digital assets supported in dollars. Although it opens up new doors for corporate skims, it also risks the sidelining of decentralized innovation. With Trump’s Pro-Crypto working group which is gaining momentum, the United States could soon lead the world in the development of regulated digital assets-but at what price?

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Faq

What is the act of genius?

The Genius Act is a new federal law which establishes complete regulations for stablecoin issuers in the United States, demanding full reserve support, strict transparency and compliance with anti-whitewashing laws

Who can issue stablecoins under the Act on Engineering?

Only insured banks, credit cooperatives, issuers qualified or qualified by the State can issue stablecoins, subject to federal or certified surveillance of the State

How does genius Act tackle money laundering and compliance?

The issuers must comply with the Bank Secrecy Act, including money laundering (AML), the knowledge client (KYC) and sanctions programs

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