The battle over stablecoin regulation—Cryptocurrency industry strongly opposes the Genius Act amendment

The proposed revision of the Genius Act, a key legal framework in the cryptocurrency industry, is attracting attention. Currently, traditional financial institutions are pushing for amendments to this law, causing significant ripples within the industry.

Current Legal Status and Bank Movements

The Genius Act currently imposes strict restrictions on providing rewards to stablecoin issuers, while allowing more flexible treatment of crypto asset platforms. This asymmetrical regulatory structure has prompted the banking sector to advocate for revisions, sparking major debates within the industry.

Mr. Armstrong’s Firm Opposition

Industry leader Mr. Armstrong has taken a strong stance against the proposed revision, clearly stating on X that this issue is a “line that cannot be crossed.” He harshly criticizes the attempts by banking institutions to amend the law, calling them unprincipled and dishonest.

According to Mr. Armstrong, it is an inevitable trend for banks to support interest policies for stablecoins, and the current revision attempt is a futile effort that hinders this future development.

Impact on the Entire Industry

The current conflict surrounding the Genius Act highlights fundamental disagreements over the regulatory framework between the traditional financial system and crypto asset platforms. This tension is expected to be a crucial factor in determining the future direction of the cryptocurrency industry.