📰 A New Fog Around Stablecoin Regulation: After the GENIUS Act, Do Money Transmitter Licenses Still Matter?
The U.S. Congress has just passed the GENIUS Act, aiming to loosen restrictions on stablecoins. But there’s a small detail in the legislation: if a stablecoin is pegged directly to the U.S. dollar, does it no longer need a money transmitter license? The Law and Ledger show says stablecoin companies now have to rethink the numbers, unsure whether they should push to amend the regulations or keep getting licensed. For the entire crypto industry, it’s a bit like driving at night in the fog—not knowing which way to go.
Why does this news matter?
The GENIUS Act was supposed to be a policy boon for stablecoins, but this detail has left everyone confused. The root cause is that the U.S. wants to legitimize stablecoins while also fearing they could become nothing more than shadows of the dollar. Why? Because if a stablecoin is pegged directly to the dollar, how is it any different from USDC? Regulators may want to create a new set of rules, but the law is written so circuitously that it has thrown the industry back into chaos. The U.S. has also recently turned its attention to Tether. Now that the bill has passed, will Tether once again be treated like a lab rat? What does this mean? Regulators are testing the waters: do they really want to encourage innovation, or are they just looking to collect licensing fees?
Market impact
In the short term, there’s little chance this will benefit BTC and ETH. After all, everyone is busy dealing with messes like FTX and has no time to worry about stablecoin licenses. But what about the medium to long term? If stablecoins can really bypass licensing, the line between the dollar and cryptocurrencies will blur, and funds may flow out of Bitcoin and Ethereum and into stablecoins. Think about it: if USDC can be sold freely, who would still be willing to hold volatile BTC? Have there been similar events in the past? Dollarization has been happening all along; this time, regulators are simply trying to strike a balance.
Trading approach
This news has a greater impact on the stablecoin sector, but for BTC and ETH, it’s mostly a matter of sentiment. If stablecoins really go their own way, it could mean the crypto market splits into two paths: one that is recognized but restricted by regulators, and another that is completely free. This thesis would be invalidated if the U.S. suddenly tightens its policies—for example, by suddenly requiring all stablecoins to obtain licenses.
【Conditions that would invalidate this thesis】If the U.S. creates a separate licensing system specifically for stablecoins, this thesis is invalidated.
【Disclosure of position】This article is not sponsored by any project, and the author does not hold any of the assets mentioned.
【Source】According to Bitcoin.com
⚠️ This is not investment advice. Predictions are for reference only.
$XRP $BTC $ETH
The U.S. Congress has just passed the GENIUS Act, aiming to loosen restrictions on stablecoins. But there’s a small detail in the legislation: if a stablecoin is pegged directly to the U.S. dollar, does it no longer need a money transmitter license? The Law and Ledger show says stablecoin companies now have to rethink the numbers, unsure whether they should push to amend the regulations or keep getting licensed. For the entire crypto industry, it’s a bit like driving at night in the fog—not knowing which way to go.
Why does this news matter?
The GENIUS Act was supposed to be a policy boon for stablecoins, but this detail has left everyone confused. The root cause is that the U.S. wants to legitimize stablecoins while also fearing they could become nothing more than shadows of the dollar. Why? Because if a stablecoin is pegged directly to the dollar, how is it any different from USDC? Regulators may want to create a new set of rules, but the law is written so circuitously that it has thrown the industry back into chaos. The U.S. has also recently turned its attention to Tether. Now that the bill has passed, will Tether once again be treated like a lab rat? What does this mean? Regulators are testing the waters: do they really want to encourage innovation, or are they just looking to collect licensing fees?
Market impact
In the short term, there’s little chance this will benefit BTC and ETH. After all, everyone is busy dealing with messes like FTX and has no time to worry about stablecoin licenses. But what about the medium to long term? If stablecoins can really bypass licensing, the line between the dollar and cryptocurrencies will blur, and funds may flow out of Bitcoin and Ethereum and into stablecoins. Think about it: if USDC can be sold freely, who would still be willing to hold volatile BTC? Have there been similar events in the past? Dollarization has been happening all along; this time, regulators are simply trying to strike a balance.
Trading approach
This news has a greater impact on the stablecoin sector, but for BTC and ETH, it’s mostly a matter of sentiment. If stablecoins really go their own way, it could mean the crypto market splits into two paths: one that is recognized but restricted by regulators, and another that is completely free. This thesis would be invalidated if the U.S. suddenly tightens its policies—for example, by suddenly requiring all stablecoins to obtain licenses.
【Conditions that would invalidate this thesis】If the U.S. creates a separate licensing system specifically for stablecoins, this thesis is invalidated.
【Disclosure of position】This article is not sponsored by any project, and the author does not hold any of the assets mentioned.
【Source】According to Bitcoin.com
⚠️ This is not investment advice. Predictions are for reference only.
$XRP $BTC $ETH
