The United States has taken a big step in crypto regulation. The Genius Act, now signed into law by President Trump, gives banks and companies the power to issue dollar-backed stablecoins.
Mastercard considers it a watershed moment. The company asserts that the law brings about meaningful clarity and enables large institutions to enter the space with confidence.
Jesse McWaters, Mastercard’s global policy lead, pointed to the moment. He thinks the law shifts the world’s perception about stablecoins. Years of work by Mastercard now appear to coincide with the market movement. More regulated products are expected by the company in the near term.
Stablecoins gain ground in mainstream apps
Stablecoins are now beyond just being tools for crypto traders. They are now being incorporated into everyday financial infrastructures. Even giants are already doing something about it. JPMorgan, Citi, and Bank of America are all keen to jump into the stablecoin bandwagon.
They are fine-tuning their product now that the law allows them to issue tokens on stringent terms. There are definitive reserves, audits, and full compliance with the finance rules. Even the technical world is reacting.
Amazon and Apple are looking at incorporating stablecoins into their platforms. If they do so, stablecoins could show up in daily consumer apps and services. That would speed up digital dollar adoption and change the manner in which people pay online.
Big banks may benefit from the new crypto law
The Genius Act is a comprehensive legal regime for the industry. It is the United States’ historic enactment of a law solely for crypto. Most in the digital asset world reacted positively. Circle, Coinbase, Gemini, and Tether industry representatives attended the White House bill signing ceremony.
However, all are not in favor of the approach. Opponents feel the law could also work against small crypto businesses in favor of large banks. Others fear it could kill innovation and openness and see the banks dominate the segment. Others feel concerned the law is still not strong enough on consumer protection as well as anti-criminal sides.
Despite the concerns, the industry now has laws to work with. That alone makes this period unique. The United States has come out firmly on stablecoins. Mastercard, accompanied by important finance and technology bodies, is about to take action. A new digital finance era has started on a formal note.
