Lawmakers in the U.S. are working on a stablecoin bill called the GENIUS Act that aims to provide a federal framework for stablecoins and make them legal. While this could benefit stablecoin giants like Tether and Circle, it could also lead to increased competition in the market. Experts believe that many companies, including tech giants like Uber and Meta (formerly Facebook), will enter the $233 billion stablecoin market once the legislation passes. It is estimated that around 1,000 firms could launch their own stablecoin within a year of the bill being signed into law. These companies would want to create their own branded stablecoins to generate profits from the underlying reserves. A lack of regulation in the U.S. has hindered the wider adoption of stablecoins, but the implementation of the GENIUS Act could address this issue and increase their use in everyday payments. The legislation may also lead to more integration between traditional finance and decentralized finance (DeFi).



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