Ripple CEO Brad Garlinghouse has hailed the passage of the GENIUS Act as a historic milestone for both crypto and the broader financial landscape. The recently passed bill by a bipartisan vote of 68-30 establishes clear regulations for stablecoin issuers, creating a federal framework intended to bolster trust and transparency within the market.
Under this legislation, only designated entities such as banks will be permitted to issue digital currencies backed by the U.S. dollar. Additionally, the law mandates monthly disclosure reports from stablecoin issuers that detail what underpins their tokens, with a requirement for major issuers to undergo yearly audits. This move aligns with Garlinghouse's long-standing advocacy for definitive regulatory guidelines, marking a significant progression in the crypto industry's relationship with regulators.
The GENIUS Act also signals a notable shift in Washington's attitude towards cryptocurrency, with 18 Democratic lawmakers joining Republicans in supporting the bill. This bipartisan cooperation may reveal an increasing acknowledgment of crypto’s potential within a regulatory framework.
Responses from the crypto community have been optimistic, with some investors believing the GENIUS Act could lend credibility to XRP and improve its standing amongst institutional investors, particularly in cross-border transactions. Supporters of the act argue that it does more than just set regulations; it aims to fortify consumer protections and enhance national security while reinforcing the dollar's digital relevance.
As the GENIUS Act heads toward implementation, its true effects—not only on the crypto market as a whole but also on Ripple specifically—will soon become evident. This legislative progress mutes past uncertainties and sends a reassuring message of cooperation between U.S. lawmakers and the cryptocurrency sector.
Under this legislation, only designated entities such as banks will be permitted to issue digital currencies backed by the U.S. dollar. Additionally, the law mandates monthly disclosure reports from stablecoin issuers that detail what underpins their tokens, with a requirement for major issuers to undergo yearly audits. This move aligns with Garlinghouse's long-standing advocacy for definitive regulatory guidelines, marking a significant progression in the crypto industry's relationship with regulators.
The GENIUS Act also signals a notable shift in Washington's attitude towards cryptocurrency, with 18 Democratic lawmakers joining Republicans in supporting the bill. This bipartisan cooperation may reveal an increasing acknowledgment of crypto’s potential within a regulatory framework.
Responses from the crypto community have been optimistic, with some investors believing the GENIUS Act could lend credibility to XRP and improve its standing amongst institutional investors, particularly in cross-border transactions. Supporters of the act argue that it does more than just set regulations; it aims to fortify consumer protections and enhance national security while reinforcing the dollar's digital relevance.
As the GENIUS Act heads toward implementation, its true effects—not only on the crypto market as a whole but also on Ripple specifically—will soon become evident. This legislative progress mutes past uncertainties and sends a reassuring message of cooperation between U.S. lawmakers and the cryptocurrency sector.
