TLDR:
- The GENIUS Act sets the stage for federal stablecoin issuer rules within a shifting monetary landscape.
- Jack’s post links the framework to broader legislation needed for deeper structural reform.
- Bitcoin and stablecoin activity form a growing cycle that influences Treasury demand.
- JPM Coin signals how major banks are adjusting ahead of new competition.
The FDIC is preparing to release the GENIUS Act framework proposal, marking a pivotal moment for stablecoin oversight.
Acting Chair Travis Hill confirmed that the issuer rules will arrive before the end of December. The update follows growing discussion about how new legislation could reshape the structure of money in the United States. The news has triggered fresh attention across crypto channels as users assess its potential impact on stablecoin competition.
GENIUS Act Framework Targets Stablecoin Issuers
The upcoming framework aims to define how stablecoin issuers operate under federal guidance. According to commentary from Jack on X, the proposal could shift key elements of money creation away from fractional-reserve banks.
His post noted that a decentralized network of issuers may reduce reliance on a single centralized model. The shared view is that optionality matters because users can change issuers if policies or terms evolve.
Jack also referenced the broader policy environment shaping the legislation. He pointed to the CLARITY Act and the Bitcoin Act as additional components required for meaningful structural change.
The post argued that the GENIUS Act alone cannot rebalance the system without these supporting bills. That position reflects debate around how fast traditional banks can adapt to new monetary rails.
JPM Coin was cited as an example of this adaptation. The bank’s deposit token demonstrates an early move to preserve existing models within evolving digital frameworks.
Jack framed the product as a response to expected competition from outside the banking sector. The message indicates that major institutions are positioning ahead of regulatory shifts.
Bitcoin and Stablecoins Form New Market Dynamics
Jack described a feedback loop developing between Bitcoin markets and stablecoin circulation.
He stated that higher BTC prices can lift demand for stablecoins used for trading and collateralized loans. This trend increases the need for U.S. Treasuries that back leading stablecoins. The result places more pressure on traditional bank deposits as funds migrate toward digital assets.
Exchange activity was also highlighted in his breakdown.
Stablecoins remain the dominant settlement tool across major trading platforms. As trading volume grows, the demand for liquidity outside legacy systems increases. This dynamic gives policymakers a new lever through Treasury markets as crypto adoption accelerates.
Jack connected this shift to the incoming administration’s policy direction.
His post noted that officials are pushing the framework early to shape how the new monetary structure develops. He emphasized the importance of public awareness as new rules gain momentum. His thread encouraged users to stay informed as updates continue to unfold.
The post New GENIUS Act Framework Pressures Traditional Banking appeared first on Blockonomi.
Source: https://blockonomi.com/new-genius-act-framework-pressures-traditional-banking/