US President Donald Trump, who called the first American “president of cryptography”, wanted the stabbed legislation to reach his office before the Congress recreation in August.
Tuesday, June 17, this wish approached a step of reality with the Senate adopting the Act on Engineering, an acronym to guide and establish national innovation for the American stables of the law of 2025, during a 68-30 vote.
“Today is a daring step – not only for financial innovation, but for American leadership, consumer protection and economic opportunities. GeniusWe provide the clarity of a sector that has been darkened by uncertainty and proving that bipartite leadership and principles can still provide real results for the American people, “said president of the Banking Committee of the US Senate, Tim Scott, Rs.C., in a press release.
“Clear rules of the road for the stablescoins have been expected for a long time, and today we are a little closer to the creation of a functional regulatory framework … I can’t wait to work with my colleagues in the House to provide clarity and essential protections for the digital asset ecosystem,” said the chamber committee on French Hill financial services, R-ARIZ.
The vote reflected the bipartite fracture of last week’s vote (June 11) where the Senate, after a procedural vote from 68 to 30, eliminated some of the more than 10 dozen modifications proposed to the Act on Engineering.
However, before reaching the office of Trump, the bill must empty the house, where the recess of August begins in about 50 days. But political theater surrounding what could be the transition from the very first cryptographic framework in the United States, the world’s implications for sustained digital currencies of a dollar and the growing institutional administration of the blockchain infrastructure tell a much greater history on the rewrite of the architecture of money itself.
Learn more: Are the financial instruments in a closed loop are the future of institutional stables?
Implications for financial services and payments
The momentum behind the law on genius is increasingly considered as a sign of approval by the wider crypto and traditional financial spaces. The circle of stablecoin issuers, for example, has become public on the NYSE, while the interest of companies for stablescoins is no longer theoretical. The main financial institutions such as Bank of America (BOFA), Wells Fargo and Citigroup explore the launch of a stablecoin to operate joint.
On Tuesday afternoon, JPMorgan announced that he planned to offer his own stablecoin, JPMD.
“Everyone jumps into the stablecoins right now,” said Brett Mclain, chief of payments and blockchain in Kraken, in Pymnts. “All the big banks, they speak of creating theirs; Others want to take advantage of those existing.
Retail giants like Walmart and Amazon explore integrated payments powered by stablecoins. And the world’s general company banks in Banco Santander are experimenting with the management of cross -border liquidity using token in chain dollars. The adoption of the law on engineering abolishes a major obstacle to entry – legal risk – and adds institutional quality legitimacy to what was formerly a speculative fringe technology.
The creation of a federal framework governing the stablescoins is important for the confidence of the industry, the co-founder and CEO of Chainalysis, Jonathan Levin, said in an interview with the CEO of Pymnts, Karen Webster, published on April 7.
The market, in turn, responds with Vigor. OpenPayd and Circle teamed up on Tuesday to offer global companies a Fiat and Stablecoin infrastructure layer. Also on Tuesday, the startup of digital assets Ubyx raised $ 10 million to promote what she calls “the ubiquity of Stablecoin”.
See also: Cryptographic companies are struggling with banking risks, without the regulations
Understand the risks for financial stability and markets
But the extent of this change in policy is not without systemic risk potential having an impact on the rest of the financial landscape. Observers warn that stablecoins could divert the deposits from traditional banks, in particular smaller institutions that are based on low -cost and tight retail deposits.
Liquidity flight in stabbed, in particular those issued by large technology or financial conglomerates, could destabilize the deposit base and erode the traditional banking financing model. There are also concerns about monetary sovereignty, privacy and surveillance – problems that have aroused similar proposals on the world.
At the same time, the support and reserves of the stablecoins are also questioned, although the regulations seek to appease this by requiring that stablecoins are supported 1: 1 by the American treasure goods, issued by regulated entities and subject to audits / LMA. However, there is an escape protecting the presidential issuers that Democrats always seek to close.
Some legislators have suggested merging the law on engineering with broader legislation such as the Clarity Act, which aims to define most cryptocurrencies as non-security. Such a group could delay the implementation or fracture of the fragile bipartisan consensus. But if the room moves quickly and President Trump signs the bill – as it is widely provided – the law could take effect before the end of the summer.
If the law is adopted, its implications will be sustainable. The law on engineering establishes a precedent not only for the management of digital currencies, but on the way in which future innovations in finance will be legislated. By codifying clear and enforceable rules without relying on the government program, he reports a new era in which the private company could play a new role in the evolution of money.
