Currently, the Genius law – which seeks to regulate the stablcoins – is in debate in the Plenary senate of the US Senate. He had received a blow after a key vote in May, but managed to unlock thanks to a cloture motion; That is, a mechanism that allows an end to a parliamentary block known as Filibuster, in which senators prolong the debate to avoid a vote. With this proposal, from the United States they seem to have identified in the stablcoins a route to sustain the value of its monetary sign. In addition to being presented as a tool to bring regulatory clarity to the industry, figures such as Senator Bill Hagerty, main driver, and lawyer John Deaton, they assure that the search initiative reinforce the dollar (USD) compared to the attempts of de -drain -led by China and Russia. In fact, the law includes clearly protectionist measures to preserve the domain of the US currency. In the middle of a slow but growing pressure on the dollar, Stablecoins have become a strategic trampoline for the United States in their attempt to sustain the hegemony of their currency. The operational model requires that emitters such as Tether and Circle support their tokens with safe assets, mainly American treasure bonds, ensuring a constant demand for public debt and, consequently, the dollar. In turn, Stable currencies expand access to the dollar in regions with fragile economies or unstable financial systemsfacilitating its use as much as a refuge of value and means of exchange. This cycle strengthens the overall presence of the main American asset and acts as a counterweight to the de -dearization efforts driven by powers such as China and the BRICS block. Since it is logical, in the United States they are more than aware that 88% of international transactions are still carried out in dollars, so they see in the stablecoins a key tool for injecting oxygen into their financial model, challenged today by global powers. Meanwhile, Bitcoin already works as a direct competitor who can be used by those who seek to weaken the influence of the dollar.
In this scenario appears the Genius law, an initiative that promises to bring clarity to the digital asset industry, marked by recent years of regulatory ambiguity and persecutory measures. However, beyond its willingness to order the sector, The proposal imposes restrictions that limit innovation and reveal a desperate posture. Instead of focusing on the consumer, rather it seems that the project was oriented to shield the position of the dollar as a primary objective. Among the aspects worth mentioning is restrict the entry of foreign or decentralized stable (According to section 3 of the text), which ensures that those issued under US regulation remain anchored to the dollar. Although the project includes the possibility of reciprocal agreements with jurisdictions of similar regulations (Section 15), these depend on the approval of the Federal Reserve and the Department of the Treasury, thus guaranteeing that only the stablecoins aligned with the interests of the United States prosper. Alternative models that could diversify the cryptoactive ecosystem. This prioritization of the dollar and the blockade to alternatives not aligned with the United States contrasts with more open approaches adopted in other jurisdictions. Since August 2023, the Monetary Authority of Singapore (MAS) specifically regulates the high circulation stablecoins linked to the dollar of the archipelago (more than SGD 5 million) or monetary signs of the G10, such as the USD, the euro or the Yen. Unlike the American model, which requires reserves exclusively in US currency and treasure bonds, Singapore allows support in different strong currencies, provided that the assets are safe, liquid and audited. Beyond technical implications, it is worth asking if the dollar should continue to be the hegemonic currency globally. From the perspective of the current US government, the response seems evident, and many countries, either by convenience or necessity, have supported that leadership. However, in a scenario where technologies such as BTC and Stablecoins are redefining the rules of the game, each country should have the freedom to choose which currency wishes to trade or support its economy. For example, If some opt for a Bitcoin standard, in the purest style of what Saifeanan Ammous proposes, welcome. It is possible that, in the next decades, the dollar loses part of its prominence, and that would not have to be something negative. Something that at this point can be denied is that, while the United States promotes laws to protect its currency and preserve its global influence, Millions of people resort to Bitcoin for practical and deeply human reasons: Suggest your purchasing power, avoid financial restrictions or escape failed regulations. Unlike Fíat money, whose issuance can be expanded without limit according to political interests, BTC has a maximum supply of 21 million, which prevents its value from being diluted over time. Just as the dollar was key to consolidating globalization, especially after its adoption by OPEC and its expansion in other industries, Nothing prevents Bitcoin, or even a robust stablecoin, to play a similar role in the future.
Senator Bill Hagerty sees Genius law as a pillar to consolidate the global domain of the dollar. Source: @Senatorhagerty.
What follows for Genius law?
Genius law still awaits a final vote in the Senateneeding a simple majority to advance. If approved, it must be coordinated with a similar law in the House of Representatives. If both cameras approve different versions, a group of senators and representatives will negotiate a unified text, which will then require the signature of President Donald Trump. It is worth noting that The legislative proposal promoted from the House of Representatives is the Stable Lawpresented by congressmen French Hill and Bryan Steil. This initiative seeks to regulate the stablecoins demanding a 1: 1 reserve in US dollars or treasure bonds, and restricts its issuance to duly authorized entities. Approved with bipartisan support by the Financial Services Committee at the beginning of April, the law is waiting to be debated in the Plenary of the Chamber. Like the genius law of the Senate, the Stable Act prioritizes the protection of the dollar against any alternative. The regulation of the stablecoins in the US. It represents an ambitious effort to integrate them into the traditional financial system. However, it is worth asking if your protectionist approach raises the dilemma of whether it is possible to preserve the hegemony of the dollar without putting obstacles to the innovation that the cryptoactive sector needs so much. With the debate still opened in the Senate and the future regulatory in the air, it will be key to closely follow the next steps of the initiatives.
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