The GENIUS Act includes a clause designed to prevent major technology companies and banks from controlling the stablecoin market, according to Circle's Chief Strategy Officer, Dante Disparte. To mint a dollar-pegged token, non-bank entities will need to establish a separate entity that resembles Circle, navigate antitrust regulations, and gain approval from a Treasury Department committee. Banks that want to issue stablecoins must do so through a legally distinct subsidiary, without engaging in risk-taking activities. This regulatory framework ensures clarity and protects consumers, as asserted by Disparte. The bill was recently passed with bipartisan support and aims to provide a structured environment for the digital currency market. It introduces a ban on interest-bearing stablecoins, rigorous disclosure requirements, and criminal penalties for unbacked stable tokens, which critics argue may hinder consumer adoption and favor foreign issuers. The act also preserves various state money transmitter laws for smaller issuers but mandates a national trust bank charter for those exceeding $10 billion in assets. Overall, the legislation is expected to shift investor interest towards decentralized finance platforms as yield opportunities are curtailed in traditional stablecoins.

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