U.S. Enacts “Genius Act” Recognizing Crypto Assets

SEC Chairman Paul Atkins announced that Congress passed the ‘Genius Act’, recognizing crypto assets and providing a regulatory framework for stablecoins in the U.S.

The recognition significantly impacts the crypto market, enhancing regulatory clarity and expanding investor protection as the U.S. aims to become a global cryptocurrency hub.

Genius Act Sets Groundbreaking U.S. Crypto Framework

The “Genius Act” represents a legislative milestone in the field of cryptocurrencies. Passed by Congress and signed by the President late last year, it establishes a comprehensive regulatory framework for stablecoins. This effort aligns with President Trump’s vision of making the U.S. the “world’s cryptocurrency capital.”

The new legislation provides clarity and certainty to crypto markets through an enhanced regulatory structure. Its focus on payment stablecoins aims to reduce costs and risks under the purview of banking regulators, as highlighted by SEC Chairman Paul Atkins in a recent Fox Business interview.

“I thought this was a really great watershed… the Genius Act is focused on payment stablecoins. And so that’s not really within the ambit of regulation, but it’s really for the banking regulators as is appropriate.”

Crypto Industry Optimistic: Immediate Reactions and Analysis

Did you know? For the first time, the U.S. government formally recognizes cryptocurrencies through the Genius Act, underscoring a shift from uncertainty to structured regulatory oversight, especially in the context of stablecoins.

Based on CoinMarketCap data, Ethereum (ETH) is currently valued at $3,099.27 with a market cap of $374.07 billion, despite recent declines. Over the last 90 days, ETH has seen a drop of 24.74%. The 24-hour trading volume increased by 62.23%, reaching approximately $19.78 billion.

Coincu research suggests the Genius Act could have substantial benefits for the financial ecosystem. Historically, clearer regulatory paths have led to increased investor confidence and market innovation. Such measures might boost the U.S.’s standing in global crypto endeavors.