- Ripple warns stablecoins need infrastructure, not just brand ambition.
- Coinbase says stablecoins could modernize outdated global payment systems.
- GENIUS Act sets legal standards for stablecoin transparency and reserves.
The GENIUS Act’s signing into law has reignited interest in stablecoins, setting the stage for a new era in digital finance. As the regulatory framework gains traction, industry leaders are weighing in on the future of stablecoin utility and responsibility.
According to Ripple’s SVP of Stablecoins, Jack McDonald, the law has sparked a rush among consumer companies and tech firms eager to launch their stablecoins. Through X, he expressed that although the interest is high, stablecoins should not be considered brand extensions or mere tech tools.
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McDonald cautioned that the generation of stablecoins comes with grave infrastructure, and erroneously doing this can have significant ramifications.
Few days ago U.S. President Donald Trump signed the GENIUS Act, which made stablecoins legal but required that liquid assets, such as U.S. dollars and short-term treasuries, back them.
Issuers are also required to periodically reveal the reserves composition in order to suggest transparency and trust by the people.
Stablecoin Reform Gains More Support from Crypto Leaders
Coinbase CEO Brian Armstrong has publicly praised the GENIUS Act, calling it a critical move toward modernizing outdated financial systems. Addressing CNBC on the White House lawn, Armstrong argued that the law could transform payment in the United States.
He focused on how the money transfer system has not changed much in decades and how stable coins are now faster and cheaper, especially for cross-border transactions.
In a follow-up post on X, Armstrong described the signing as a defining moment for the financial sector. He spoke of the power of the law to open up the next tier of financial infrastructure and said that the financial revolution forayed here.
In the meantime, McDonald has warned that most new stablecoins are created in closed environments, which hamper their applicability in real life. He demanded that stablecoins are not another aspect of products but the backbone of the country financially.
Reserves that can be audited, infrastructure, and clarity are crucial to long-term success.
Armstrong also noted that notwithstanding the breakthrough of the GENIUS Act, additional legislation is necessary. He pressured legislators to approve the Clarity bill, which would govern the wider crypto sector comprising stablecoin.
President Trump has also shown interest in having the bill considered before the end of September, as per Armstrong.
Conclusion
The GENIUS Act has brought stablecoins into the regulatory spotlight. Ripple’s Jack McDonald and Coinbase’s Brian Armstrong agree that this marks a pivotal shift in digital finance. As momentum builds, the focus now shifts toward implementation and the future of crypto regulation in the United States.
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