An important link for Stabelines was marked by the reconstruction US passage of the Genius Act, a regulator example was established that could shape digital finance globally.
The Chief Investment Officer at Signum Bank joined the latest episodes of Insight Podcast of Bite-Size of Cointelagraph, stating how the act will affect stabecoin adoption, institutional engagement and international regulatory alignment.
Innovation and stability
The Genius Act, which introduces a clear federal regulator fram -work for fiat-supported stabecoin, demands complete transparency from the issuers, including one-to-one asset banking, Mandon Arrangement Infrastructure Licensing and Independent Reserve audit.
For Dori, these provisions are required to run responsible innovation and financial stability.
“I really feel that the impact of the Genius Act will be important, both short and long -term,” Dori said.
“By request that stablecoin issues get a federal license, return your Stablecoins 1-TO-1 with high-waked assets and disclose the resourse company … to use Stablecoins.”
Nevertheless, a controversial aspect of the Act, prohibition of stabelines before yield, can reopen stabelines interdart with decentralized finance (DEFI).
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Dori explains that this step can create a clear market difference between payment-centered stabelcoin and yield-generating token money market products.
He said, “It is true that it is not more now, which earn the produce from Fiat-supported stabecines,” he said.
“It will create a clear separation between non-ableding stabelin and token money market funds.”
Europe vs America
Another major topic discussed is the division between regulation in Europe and America.
Europe, which has been cautious with Digital Euro initiative, is now alert in its regulatory stance, now can face press to accelerate innovation due to the US stance taken through the Genius Act.
Dori said, “It seems that the US -like focus on a focalwork that allows innovation and drives, which is mainly focused on risk management.”
“The Genius Act will be real.
Listen to the full episode of the byte-shaped insight for full interview on the podcast page, apple podcast or spotify of cointelegraph. And don’t forget to check the full lineup of cointelegraphs of other shows!
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