BREAKING: Trump’s Pencil Readies for Stablecoin Chaos – The GENIUS Act Unleashed!

In a quaint little corner of the universe, wherein glittering bits of crypto magic swirl around like a hyperactive squirrel on caffeine, President Donald Trump is merely a pen stroke away from giving birth to a bill. Yes, the kind of bill that regulates stablecoins, those elusive tokens that somehow manage to keep their cool amidst a sea of chaos.

Last Thursday, the US House, presumably gathered in a room full of caffeine and good intentions, passed three crypto bills. Among them, the GENIUS Act, which—let’s be honest—isn’t exactly the name you’d expect for legislation. It supposedly stands for “Guiding and Establishing National Innovation for US Stablecoins Act.” (You could practically hear the committee patting themselves on the back, couldn’t you?) 🥳

Now, this bill, which was birthed in the lofty chambers of the Senate, only needs Trump’s autograph to join the realm of law. Expectedly, the signing ceremony is slated to occur at 2:30 pm on Friday. Will there be confetti? One can only hope. It’s high noon in Washington, DC, and Eleanor Terrett has her popcorn ready for the spectacle.

And here come the delightful tidbits about what the GENIUS Act is poised to change.

Stablecoin Issuers Yearning for a Banking Life

Logan Payne, a legal magician focused on crypto, spilled the beans to CryptoMoon that the GENIUS Act presents an irresistible temptation for stablecoin issuers to don the cap of a bank. Who wouldn’t want to feel like a big kid on the block?

The new stablecoin license under the GENIUS Act restricts a company to “purely stablecoin issuance.” But let’s be real—most stablecoin issuers also dabble in a little bit of everything, rather like your over-ambitious friend who wants to be a world-class chef, artist, and professional cat cuddler all at once.

Despite snatching the GENIUS Act-approved license, they’d still be on the hook for state-level money transmission licenses to operate nationwide. So, if you’re a stablecoin issuer dreaming of the banking life, you’d better also plan to charm the Office of the Comptroller of the Currency (OCC) for a national trust bank charter. 🙃

Interest on Stablecoins to Go Extinct

Ah, the drama thickens! A more contentious chapter in this tale is the bill’s ban on stablecoin issuers—both foreign and US-regulated—granting interest or yield. It’s like pulling the rug out from under a bunch of enthusiastic investors. 😱

Yield offerings have long been the shiny apples in the market’s orchard, drawing in users like bees to honey. But with this law, expect to see a few more frowns around the crypto campfire as arrangements morph into something less appetizing. Poor Logan would hardly be surprised to witness such transformations.

DeFi to Enter a Fog of Uncertainty

According to Logan, the GENIUS Act is set to sprinkle a bit of uncertainty onto the DeFi landscape, like a cat walking over a freshly cleaned kitchen counter. 🐱‍👤 How exactly will this legislation sway decentralized finance? Well, your guess is as good as mine, but it seems we’re in for a bumpy ride ahead.

As Logan insightfully notes, more legislation will likely emerge to fill in those pesky gaps. You might want to keep your crystal ball handy for when the CLARITY Act rolls in—the bill aimed at clarifying classifications for digital assets. Wouldn’t it be nice if clarity just showed up unannounced, with cookies and warm tea?

Prepare for Monthly Reserve Reports, Folks!

Under the GENIUS Act, permitted stablecoin issuers must ensure their tokens are backed 1:1 with reserves of real US dollars or perhaps something equally trustworthy, like Treasury bills (because nothing screams “trustworthy” quite like a government security). They’ll be obliged to flaunt their reserve compositions and even have them examined by a registered public accounting firm. It doesn’t get any more thrilling than that, dear reader!

Outlawing Non-approved Issuers, but International Friends Can Relax

Fast forward three years after the bill’s glorious signing, and any stablecoin not birthed from an approved issuer will find itself standing at the door, shivering in the cold. 🌬️ Meanwhile, foreign stablecoins can ride the wave as long as they promise to behave and comply with the bill’s legal demands. It’s like a global regulatory Headmaster saying, “Only the worthy may pass!”

Multiple Agencies Take the Reins of Stablecoins

Lastly, this bill gives the green light for a variety of regulated entities—banks, credit unions, and nonbanks—to join the stablecoin circus. With a splendid dual federal and state regulatory framework, everyone’s gathering to police these colorful creatures. Depending on what color hat they wear, they will be overseen by the National Credit Union Administration, the Federal Deposit Insurance Corporation, or maybe even the Federal Reserve itself. Ah, what a delightful hodgepodge!

2025-07-18 08:40