Treasury Chief Declares GENIUS Act a Game-Changer in the Global Digital Currency Arms Race

The U.S. just fired its biggest shot in the crypto regulatory war—and Wall Street's scrambling to keep up.

Legislation That Actually Gets It?

The GENIUS Act—finally—gives federal agencies clear marching orders on digital assets. No more turf wars between the SEC and CFTC. No more 'regulation by enforcement.' Just a 12-month countdown to coherent rules.

Why This Hurts Legacy Finance

JPMorgan's blockchain team reportedly went into emergency meetings post-announcement. When DC moves faster than Manhattan skyscrapers, you know the game's changed.

The Cynical Take

Of course, the banks will now lobby to 'help shape implementation'—DC-speak for watering it down behind closed doors.

GENIUS Act sparks market optimism

Crypto markets rallied on news of the GENIUS Act’s passage, and major digital currencies such as Bitcoin (BTC) and ethereum (ETH) gained momentum. This is no coincidence, industry leaders say.

Lukas Enzersdorfer-Konrad, Deputy CEO of Bitpanda, said the move shapes investor sentiment in the crypto space. He noted that the milestone drives broad market optimism, attributing the recent Bitcoin rally and growing interest in altcoins like XRP and DOGE to increased regulatory clarity.

He added that investors need certainty to commit for the long term, and that certainty comes from clear, enforceable rules.

Apart from these fluctuations, the bill could change how investment firms and hedge funds deploy capital. Obtaining prescribed rules will make it easier for institutions to manage risks when categorising types of crypto assets, trading platforms, and consumer safety.

Tae Oh, CEO of Gluwa, focused on the bill’s impact on stablecoins. He said the GENIUS Act marks a major first step in establishing a federal framework for USD-pegged stablecoins. He described it as a strong endorsement of responsible innovation, consumer protection, and the potential for a competitive and dynamic global stablecoin industry.

He explained that the bill forms the groundwork for adopting digital assets into the broader financial infrastructure, particularly payments, decentralized finance (DeFi), and cross-border transactions. He said that when the fog clears on regulations, trust in stablecoins is a legitimate tool for everyday finance.

Oh, also underscored the significance of the pending Federal Reserve policy meeting, adding that it would only take a hint of a policy pivot to have a big impact on risk asset classes, including crypto.

US aligns with global crypto regulation trend

The GENIUS Act and other similar efforts have been part of a global effort to create boundaries around the digital asset space. Analysts say the United States is starting to MOVE in line with regulatory efforts in other large economies.

The EU’s Markets in Crypto-Assets Regulation (MiCA), which is being transposed into law across all Member States, provides a continental point of reference. Offering a single market for the issuance, trading, and storing of crypto assets, MiCA already has companies lining up for a regulatory jurisdiction in Europe.

Similar measures are being developed in Singapore, South Korea, and Japan, whose digital asset guidelines will adapt to the fast-paced digital innovation. These developments, seen in combination, suggest that policymakers worldwide are increasingly of one mind: the crypto industry needs to be regulated, but not at the cost of hampering innovation.

However, global strategies vary. Some, especially in the Global South, emphasize the redesign of financial infrastructure, while others, as with the US SEC, persist in enforcement using securities laws.

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