Crypto Law Recently Rejected in the US Has Been Amended: Some Negative Changes Have Been Added – Here’s What You Need to Know

Crypto Law Recently Rejected in the US Has Been Amended: Some Negative Changes Have Been Added – Here’s What You Need to Know An amendment has been made to the cryptocurrency bill in the US that will apply to stablecoin companies such as Tether and Circle. According to cryptocurrency journalist Eleanor Terrett, new regulations in the GENIUS bill submitted to the US Congress impose significant restrictions on the stablecoin market. The bill aims to both protect investors and prevent government involvement in stablecoin projects. One of the most notable provisions of the bill would prohibit stablecoin issuers from using phrases such as “United States,” “United States Government” or “USG” in their product names. The move aims to prevent consumers from misperceiving these assets as being backed by US dollars or a federal government guarantee. It also bans false claims that stablecoins are backed by Federal Deposit Insurance Corporation (FDIC) insurance. Under the bill, no issuer will be able to claim that stablecoins are FDIC insured or backed by the “full faith and credit” of the federal government. The bill also significantly limits tech giants like Amazon, Meta, Google, and Microsoft from issuing stablecoins without being financial institutions. These companies would be required to adhere to high-level financial risk management, data privacy, and fair trade principles in order to enter the stablecoin market, thus preserving the separation between banking and commerce. The bill also includes special regulations to protect legal compliance with institutions that can benefit from the FED’s services. Another article of the bill includes the creation of mechanisms to protect investors in the event of stablecoin issuers’ bankruptcy. The new law gives the Treasury Department the authority to suspend registrations for negligent or willful misconduct by issuers. While the previous draft only sanctioned willful violations, the new law would also penalize serious negligent violations. The law also provides strong penalties for illegal transactions conducted through noncompliant exchanges. The bill also expands ethics rules for special government officials, with special status officials like Elon Musk now subject to the Office of Government Ethics’ financial conflict of interest rules. *This is not investment advice.