GENIUS Act May Impact Stablecoin Liquidity
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: 6h ago- Liquidity Impact: The GENIUS Act may restrict interest payments on stablecoins, leading to a shift of funds into traditional safe-haven assets like gold and silver, thereby reducing stablecoin liquidity and impacting short-term crypto purchasing power.
- Market Dynamics Shift: Circle is shifting its focus from market capitalization to trading activity, reflecting mixed views on stablecoin utility, with some analysts seeing this as an opportunity for alternative assets while others view it as a threat.
- Compliance and Innovation: According to the Coincu research team, the potential prohibition on interest yields from the GENIUS Act may drive stablecoin issuers to prioritize compliance and innovation in payment solutions, fostering technological advancements and collaborations.
- USDC Market Performance: USDC is currently priced at $1.00 with a market cap of $71.6 billion and a 24-hour trading volume of $22.7 billion, showing a 73.55% increase in activity despite limited price volatility, indicating a vibrant market engagement.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
