Senator Hagerty’s GENIUS Act aims to regulate stablecoins, boosting US dollar dominance by ensuring 1:1 backing and fostering global adoption.
Senator Bill Hagerty’s most recent social media post has offered a more comprehensive understanding of The GENIUS Act, more commonly known as the stablecoin bill. The Senator asserts that the objective of this proposed legislation is to fortify and modernize the financial infrastructure of the United States.
The Stablecoin Bill will enhance the efficiency of payments and the dominance of the US dollar
The primary objective of the GENIUS Act is to modernize the payment system in the United States. The country intends to modernize its payment system by incorporating new technology or optimizing existing methods.
The stablecoin law will enable individuals and businesses to conduct financial transactions that are more secure, efficient, and seamless. This revised system would address constraints such as the use of outmoded technology by cybercriminals, the cost of transactions, and the slowness of payments.
The RLUSD stablecoin’s listing on its fourth crypto exchange illustrates the swift adoption of these cryptocurrencies. The stablecoin bill serves a critical function in preserving the US dollar’s position as the dominant currency in the global currency market.
The dollar’s strength is a concern to US policymakers, as digital and alternative currencies are becoming increasingly prevalent. The act’s strategy for enhancing the dollar’s stability is a critical component.
The GENIUS Act is dedicated to enhancing innovation
The stablecoin law will also impact global trade. The objective is to ensure that the dollar is the preferred currency for international trade and savings. Consequently, this ensures the preservation of America’s economic influence on the global stage.
The legislation prioritizes customer protection. This aspect implies the implementation of provisions that are intended to protect both consumers and businesses that engage in financial transactions. Enhanced security measures against fraud, clearer regulations for financial service providers, or improved recourse mechanisms for consumers in the event of disputes are all included in this.
The objective is to cultivate confidence in the contemporary payment system and guarantee that robust protections for users accompany the advantages of technological advancements.
US Treasury Demand Will Increase Due to Stablecoin Bill
Senator Hagerty further stated that the GENIUS Act would augment the demand for US treasury products, which has increased despite Trump revoking tariffs. The heightened demand for treasuries reflects the US economy’s financial stability and confidence.
This can result in a more robust fiscal position and reduced borrowing costs for the government. One significant benefit is that it assists the government in defraying operational expenses.
Additionally, the CEO of MoneyGram believes that a stablecoin law presents a significant opportunity for the company. Anthony Soohoo is enthusiastic about the measure, as it enables MoneyGram to incorporate stablecoins into its current framework.
The integration of these cryptocurrencies into international banking has the potential to revolutionize how money transactions are conducted worldwide. The FTX repayment scheduled for tomorrow illustrates the extent to which stablecoins can impact the broader crypto markets.
