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After numerous Congressional debates and revisions, the GENIUS Act is now on the verge of becoming law. The bill, which aims to regulate the stablecoin industry across the United States, is widely expected to be signed.

According to representatives from Digital Chamber, a D.C.-based advocacy group for the blockchain industry, the bill approval will likely come before the end of June. Such a move would increase institutional adoption and strengthen the US dollar’s dominance globally. 

When Will the GENIUS Act Pass?

Poised for passage, the GENIUS Act is a landmark bill that would federally regulate the US stablecoin industry.

Despite recent disagreements between Republican and Democratic Senators, the bill passed a key procedural vote. Kristopher Klaich, Policy Director at The Digital Chamber, strongly believes in its impending approval.

“I feel pretty strongly that there won’t be more hiccups… I think the industry has been such a strong player in politics for the last couple of years and supporting campaigns… there’s a high cost for members that may be the stick in the mud,” he told BeInCrypto.

According to Taylor Barr, the advocacy group’s Government Affairs and PAC Manager, 53 amendments have been made. 

“Majority leader Thune is committed to having what he’s calling a fully open amendment process, which means every single amendment has the full right to go through a debate vote and to have full closure on each amendment. So at the end of the day, that could be a three-week-long process,” Barr told BeInCrypto. 

However, Barr clarified that a fully open process with 53 individual debates is unlikely. He expects these amendments to be divided into three or four groups, resulting in a more efficient and abbreviated open amendment process, given that many are duplicative.

If Barr’s estimations are correct, the bill will pass before the end of this month. When it does, the significance will be substantial for the greater crypto industry.

Understanding Stablecoin Impact

Stablecoins are arguably the most globally adopted digital asset. Unlike traditional cryptocurrencies like Bitcoin or altcoins, they provide worldwide access to a stable medium of exchange. 

According to a January report by crypto exchange CEX.io, the total stablecoin transaction volume reached 27.6 trillion in 2024, exceeding Visa’s total payment volume and Mastercard’s by 7.7%.

Tether and Circle dominate the market at $151 billion and $59 billion, respectively. Together, they have an 89% market share, according to rwa.xyz.

Their heavyweight presence in global economies makes a bill like the GENIUS Act all the more significant. This is especially true in the context of a debilitated US dollar.

The Dollar’s Waning Influence

The US dollar started the year exceptionally weakly. Two days ago, the US Dollar Index (DXY)—a key measure heavily influenced by the euro—fell nearly 9% to just under 99. The results marked its weakest calendar year opening since at least the mid-1980s. 

Faced with this data, along with ongoing trade uncertainties and recession fears, investors are fundamentally re-evaluating the dollar’s role in their portfolios.

This situation and broader de-dollarization efforts by major US debt holders like China and Japan intensify concerns about the dollar’s future. 

Data from Ark Invest illustrates this shift. In 2011, these three nations held 23% of the $10.1 trillion in outstanding US Treasury debt.

By November 2024, despite the total outstanding US Treasury debt rising to $36 trillion, their combined holdings had dropped significantly to approximately 6%. 

This substantial decrease in holdings by key foreign creditors highlights growing worries about the dollar’s long-term stability and the United States’ ability to refinance its massive debt.

“Dollars are the world reserve currency. Demand for dollars has waned at the sovereign level. Over recent years, the largest purchasers of treasuries are cutting their holdings of treasuries. That is not a good situation for the United States as they try to refinance,” Klaich said.

Klaich added that legislation like the GENIUS Act is crucial: 

“In my mind, there’s very little more important than the stablecoin bill being passed from an macroeconomic perspective… If demand for dollars diminishes at the sovereign level, structurally speaking, if that is or can be replaced by demand at a retail individual level, that is a huge boon to the US government.”

The data behind Klaich’s statements seems to back his analysis. 

What Role Will Stablecoins Play in Future US Debt Demand?

The stablecoin market is poised for significant growth. According to an April report from Citigroup, the total stablecoin supply could reach $1.6 trillion by 2030. This growth could create a demand for US debt comparable to the historical levels supported by sovereign nations.

The GENIUS Act could facilitate this transition.

“Hopefully, when it passes, demand for stablecoins will explode because there are many companies and banks that are planning to introduce stablecoins that will provide the rails for them to operate at a consumer and business level. So the efficiencies companies and individuals realize will help push that,” Klaich explained.

By serving areas and people neglected or undermined by traditional banking systems, stablecoins could also help counterbalance the global de-dollarization movement. 

“It allows anybody in the world to access US dollars. What that affords the US from an economic warfare standpoint is significant,” Klaich added. 

With persistent inflation risks, the Federal Reserve is unlikely to buy back significant amounts of US treasuries. Therefore, encouraging stablecoin use allows this market to effectively replace currently ineffective financial mechanisms.

Amendments to the Bill

If the GENIUS Act is implemented correctly, the stablecoin industry could become a valuable financial tool for the US government to ensure long-term support for the US dollar.

The bill underwent a difficult revision process. According to Barr, the process was tedious and politically challenging.

“If you look at all of the progress we’ve made, we’ve worked on this for three Congresses now. We’ve worked on this [through] multiple different leaderships– minority, majority split. So we’re so close. We’ve done all this progress so we can see the finish line. We’re going to get there,” he said. 

However, multiple revisions were a prerequisite for its passage to ensure the bill responsibly addressed consumer protection, national security, and market integrity issues.

Klaich noted that these critical concerns were addressed fairly in the legislative process. He emphasized that recent versions of the bill effectively integrated these revisions.

“None of those issues are existential, and they’ve been negotiated into the latest version of the bill that’s being considered right now. I think the changes that have been made are reasonable and acceptable,” he said. 

The future will reveal if the bill passes and achieves its desired effect in helping the US overcome its complicated economic reality.

The post Why the GENIUS Act Stablecoin Bill is Critical for the US Dollar and Economy appeared first on BeInCrypto.

Tether minted $1 billion in USDT on the Tron network today, bringing its total minted tokens since January to 12 billion. This reflects growing demand for crypto and could signal bullishness.

Previously, major stablecoin issuances have led to a bullish cycle. With fresh inflows, the market sentiment is trending towards Greed, and Tether may facilitate more bullishness.

Tether’s Major USDT Minting

Tether, the world’s largest stablecoin network, has been steadily minting USDT tokens for the past few months. It minted 19 billion in a spree between November and December last year and added another billion less than a week later.

Today, Tether’s new action on Tron could have a powerful impact on the market.

This new USDT minting could have broad market implications for a few reasons. Major net issuances often reflect growing demand from institutions and OTC desks that need large blocks of stablecoins for cross-border settlements or build-up before buying digital assets.

For example, when it issued 1 billion USDT a little over a year ago, this caused Bitcoin’s price to spike.

In isolation, this single issuance could push the needle in a bullish direction. However, since Lookonchain data shows a pattern of major mintings, Tether could spur a lot of optimism.

Despite recently hitting a three-year low, the Crypto Fear and Greed Index has been trending upward. It’s currently in Neutral but briefly exhibited Greed yesterday.

In other words, the market is primed to accept a bullish signal, and Tether’s major minting may provide it.

Still, not every mint equates to immediate market deployment. True bullish pressure arrives only when those new USDT hit exchange wallets. Luckily, that seems like a very achievable goal.

Tether has a long history of using Tron’s blockchain for USDT mintings, and the two firms enjoy active cooperation today. Hopefully, this will help ensure these new tokens quickly reach exchanges and the broader market.

If so, Tether could aid a preexisting trend of fresh inflows to the crypto sector.

The post Tether’s $1 Billion USDT Mint Fuels Bull Run Optimism appeared first on BeInCrypto.