Following the recent passage of the GENIUS Act in the US, significant changes are expected in the stablecoin landscape. Fabian Dori, chief investment officer at Sygnum Bank, discussed the act's implications on the Cointelegraph podcast. The GENIUS Act mandates transparency from stablecoin issuers, requiring full asset backing, federal licensing, and independent audits. Dori emphasized that these measures are critical for fostering innovation and ensuring financial stability, offering institutional investors greater confidence in regulated stablecoins. However, the prohibition of yield-bearing stablecoins could alter their role in decentralized finance (DeFi), creating a clearer distinction between payment-focused stablecoins and those that generate yield. Furthermore, the regulatory divide between the US and Europe may compel the latter to adapt to maintain competitiveness, as the US framework encourages innovation while Europe has prioritized risk management. Overall, the GENIUS Act is poised to draw new issuers and use cases to the US market.

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