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Stablecoins quite honestly is the sweet spot in the adoption of cryptocurrency worldwide. What made people to fear investing into crypto is it's extreme volatility. Yeah high risk high reward, but not everybody is looking to necessarily make a quick buck, some simply want to preserve what they've earn and that's just fine. Stablecoins are a type of digital money, kinda like Bitcoin but their value is usually tied to the U.S. dollar or any fiat for that matter to keep them steady. So basically if a 10 dollars can buy a loaf of bread, 10 USDT, or 10 HBD (Hive backed dollar) can. I know most reading on this platform already understand this, but I'm explaining this concept just incase a newbie bumps into my blog someday.
Because it's price doesn't swing around and are pegged, traders often use it a lot when they want to take profit or get ready to invest in a trend. I tried googling the industry value of stablecoins whiles writing this blog, and I figured it's over 200 billion dollars and growing.
This figure obviously will call for the attention of governments, since it's a big part of the worlds monetary system now, so in a way, there needs to be a level of regulations but not to the extent that it hinders innovation. Because it's crypto, anyone at all can get up, pull some funds and start one. That's okay if it's a meme coin, but not so much if everyone has to buy the fact that it's safe.
We need a little security that says "safety".
That's where the bill called the GENIUS Act (yes, quite a bold name if you ask me) comes in. It’s basically a plan to control how stablecoins are made and managed in the country.
From what I've read online this morning, Two senators, Hagerty and Gillibrand, are really pushing this bill. They both agree that stablecoins are becoming a big deal in the world economy as I said before, but they want to make sure companies don’t misuse them. I also read that some people are already nervous about tech companies like Meta (the company behind Facebook) trying to get involved. They claim it's risky to let companies of that size have that kind of power over digital money. Don't really know much about that but I think it's because a social media platform can influence it in a way to their own interest.
The other thing I read which I think may, and I emphasize on the word may, be a problem is that former President Trump has his own crypto interests. Whether you buy that or not, it's something to consider. He has his one coin, and stablecoin, plus his sone Eric Trump is also pushing his stablecoin USD1. This is why it's harder for politicians to agree on pushing this bill out since it was read on February 2025.
Yeah old-fashioned politics still plays a big role in everything global. Anyways, next week, we will know if the Senate will actually move this bill forward since they've decided to debate the Genius Act. Don't know they actual day but will update this blog when I figure it out.
