U.S. Treasury Secretary Scott Bessent Announces the U.S. Dollar Going On-Chain, Following the Enactment of Significant Stablecoin Legislation
The US has taken a significant step forward in the digital finance world with the passing of the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act. This legislation establishes a comprehensive federal regulatory framework for U.S. dollar-backed stablecoins, filling a longstanding regulatory gap and bringing much-needed clarity to the industry.
The GENIUS Act sets strict regulatory standards for banks and qualified stablecoin issuers. It requires stablecoins to be fully backed by U.S. dollars or short-term U.S. Treasury bills, enforces monthly reserve disclosures, annual audits for large issuers, and mandates strict anti-money laundering compliance.
The aim of the GENIUS Act is to enhance consumer protection, encourage responsible innovation, and reinforce the U.S. dollar's role as the world's reserve currency in the digital asset space. By bringing legal transparency and regulatory certainty, it removes much of the previous uncertainty around stablecoin issuance and use, which is critical for broad adoption by institutional players, payment service providers, banks, businesses, and retail users.
Scott Bessent, a prominent figure in the financial industry, believes that the passing of the GENIUS Act signals the greenback's embrace of cryptocurrency technology. This legislation creates a secure legal pathway for dollar-backed stablecoins to operate under federal oversight, accelerating their use for everyday transactions, cross-border payments, and digital liquidity management on blockchain platforms.
In a separate development, financial giant Charles Schwab has announced plans to launch Bitcoin and Ethereum trading. Analyst Kevin Svenson has identified a 'very bullish signal' for Bitcoin, with a potential target of $136,000, albeit with a caveat.
The GENIUS Act is described as a major leap forward for US financial technology, and it indeed seems to be a watershed moment that legitimizes and stabilizes payment stablecoins in the U.S., encourages safer digital dollar representations on blockchains, and strengthens the dollar’s global competitiveness in the emerging digital economy.
[1] Source: Coindesk.com [2] Source: Forbes.com [3] Source: Cointelegraph.com [4] Source: Investopedia.com
- The GENIUS Act, designed to bring legal transparency and regulatory certainty to the digital asset space, also creates a secure legal pathway for dollar-backed stablecoins to operate under federal oversight, potentially driving their use in everyday transactions, cross-border payments, and digital liquidity management on blockchain platforms.
- Financial giant Charles Schwab's plan to launch Bitcoin and Ethereum trading, complemented by the passage of the GENIUS Act, could signal a broader acceptance of cryptocurrency and altcoins in the traditional finance and business world, further expanding their usage and increasing their potential value.
