The Genius Act, a newly implemented American law regulating stablecoins, is already under scrutiny for potential modifications by traditional banks and consumer advocacy groups.
The two sides co-signed a letter requesting the removal of a clause that permits state-licensed stablecoins to operate nationwide with fewer regulations than traditional banks. This change would create room for “regulatory arbitrage,” allowing institutions to select locations with more lenient rules and bypassing current banking system requirements.
Banking associations are concerned that the law restricts stablecoin issuers from offering income on assets, while allowing affiliated companies to do so, potentially leading to unfair competition with traditional banking services.
Faryar Shirzad, policy director of Coinbase, questioned the value customers perceive from banks in light of potential large-scale transfers to stablecoins, dismissing bank concerns as exaggerated.
Cryptocurrency market performance.
Bitcoin fell on Friday after reaching a new all-time high earlier in the week, following the release of higher-than-expected US producer price index (PPI) data. This reduced expectations of aggressive interest rate cuts by the Federal Reserve. At 8:35, the world’s largest cryptocurrency was trading at $119,119.52 (R$644,305.57), down approximately 2.2%.
At 8:20, major cryptocurrencies were experiencing a decline in value; refer to the market prices.
Bitcoin (BTC) has decreased by 1.46% to US$119,075.99.
Ethereum (ETH) has decreased by 1.59% to US$ 4,632.62.
XRP (XRP) has decreased by 3.35% and is currently priced at $3.10.
BNB (BNB) has decreased by 1.87% to US$ 845.77.
Solana (SOL) decreased by 4.08% to reach US$ 194.49.
Highlights of the day include:
TRON (TRX) is up by 2.37% to reach $0.3595.
Top stories in the cryptocurrency market
US imposes sanctions on Russian brokerage for involvement in illegal activities with cryptocurrency, including ransomware attacks and illicit transactions worth over $100 million.
BTCS boosts investment in Ethereum by acquiring over $321 million worth of ETH, as stated in their latest report. The company, a pioneer in blockchain technology and listed on Nasdaq, has significantly increased its ethereum holdings to 70.140 ETH. Despite experiencing a 341% revenue growth in the first half of the year, BTCS remains in the red with a net loss of $13.3 million. In response to the surge in cryptocurrency interest, BTCS has revealed intentions to raise up to $2 billion through stock issuance to further expand its ETH portfolio.
