The cryptocurrency landscape is undergoing a seismic shift as the newly enacted GENIUS Act establishes America's first comprehensive regulatory framework for stablecoins. Fabian Dori of Sygnum Bank reveals how these changes will reshape digital finance across three critical dimensions.

Strict New Rules for Stablecoin Issuers

The legislation mandates federal licensing for all dollar-pegged stablecoin providers, requiring 【100% reserve backing】 with high-quality liquid assets. Issuers must now undergo quarterly audits and disclose reserve compositions—measures Dori calls "game-changing for institutional confidence."

——This transforms stablecoins from speculative instruments into regulated financial products—— he noted during a Cointelegraph interview. The prohibition on yield-bearing stablecoins particularly impacts DeFi ecosystems, forcing a clear division between payment tokens and investment vehicles.

Transatlantic Regulatory Divide Widens

While U.S. policymakers embrace innovation through the GENIUS Act, Europe's cautious MiCA framework and digital euro experiments reveal stark philosophical differences. Dori observes: "America's approach attracts issuers and developers, while Europe remains preoccupied with risk mitigation."

The regulatory divergence could redirect 【$18 billion】 in stablecoin liquidity to U.S.-licensed entities within 12 months, according to blockchain analysts. This capital migration may pressure EU officials to accelerate their own crypto rulemaking.

Global Domino Effect Begins

Asia-Pacific markets are already responding to the U.S. move, with Singapore and Japan reportedly drafting complementary legislation. The GENIUS Act's reserve requirements establish a new global benchmark that could marginalize non-compliant stablecoins.

Interestingly, the law's most controversial provision—banning algorithmic stablecoins—remains untested against decentralized protocols. As Dori warns: "Regulation always lags behind technological reality by 12-18 months."

The full analysis reveals deeper implications for cross-border payments and CBDC development in Cointelegraph's latest podcast episode, available across major streaming platforms.