The GENIUS Act Won't Save the Dollar

Group 1 - The GENIUS Act provides regulatory clarity for U.S. stablecoin operations, establishing clear reserve requirements and compliance frameworks, which alleviates uncertainty in the sector [2] - While the act is celebrated for reinforcing dollar dominance, it inadvertently offers a regulatory template that other nations are adapting for their own digital currencies, such as Japan's JPYC initiative and frameworks in Hong Kong and Latin America [3][6] - The act standardizes USD stablecoins but does not address local liquidity gaps that hinder their global adoption, as cross-border payments still incur significant foreign exchange costs [4] Group 2 - The current cross-border payment system is inefficient, requiring complex conversions that impose fees and delays, particularly for non-dollar economies, which raises questions about the necessity of using USD intermediaries [5] - The GENIUS Act's influence may lead to an unintended revolution in global digital currency regulation, as it reduces the perceived risk for sovereign stablecoin projects, encouraging countries to adopt similar frameworks [6]