The financial services company Mastercard acknowledged the GENIUS Act as a turning point for stablecoin supervision and digital asset integration, stating that it has prepared infrastructure over the years to address the regulatory environment.
According to Cryptopolitan on the 20th (local time), Mastercard recognized the GENIUS Act as a "turning point" in stablecoin supervision and broad digital asset integration.
Jesse McWaters, the company's global policy head, even described stablecoin regulation as a driver of institutional participation and an opportunity for a clearer and safer regulatory environment for cryptocurrencies.
The GENIUS Act allows authorized banks and companies to issue stablecoins pegged to the US dollar, provided they meet strict reserve requirements, disclosure, and regulatory compliance requirements.
Mastercard stated that it has laid the groundwork over the years to welcome stablecoin regulation. The company claims it has engaged with players across cryptocurrencies and traditional financial environments to better understand how stablecoins and other digital assets can enhance today's payment infrastructure. It also disclosed investments in infrastructure, strategic partnerships, and standards to allow responsible stablecoin growth.
Mastercard added that its Mastercard Multi-Token Network and Mastercard Crypto Credential platform will support regulatory compliance, oversee settlement processes, enhance safety measures, and maintain the programmability and flexibility that make stablecoins valuable.
McWaters also mentioned that meaningful stablecoin adoption requires trusted platforms to accept assets.
Major companies like Amazon and Apple are considering stablecoin investments. Moreover, executives from JPMorgan, Citigroup, and Bank of America have hinted at similar plans. Several banks are reportedly discussing partnerships with Zelle for joint stablecoin issuance.
Summer Mersinger, CEO of the Blockchain Association, also praised the GENIUS Act's goal-oriented and purposefully constructed stablecoin regulatory approach.
He argued that the law paves the way for regulatory clarity that ensures consumer protection, promotes innovation, and strengthens the US dollar's influence in digital finance.
However, Corey Frayer, Director of Investor Protection at the Consumer Federation of America, criticized the stablecoin law, saying, "There's no reason to recommend stablecoins to grandma because she would have to give up dollars protected by the federal government and deposit insurance, with bank accounts paying interest, and exchange them for stablecoins with none of those protections."
According to Frayer, the GENIUS Act allows stablecoin issuers to bypass traditional banking safeguards and operate with minimal oversight, which historically never ends well.
Moreover, concerns remain that stablecoins may not actually reduce backend operational costs. So far, most companies have stated their intention to use stablecoins primarily for backend functions, such as lowering merchant fees paid to credit card networks or simplifying currency conversion in cross-border transactions.
Some who questioned stablecoins' value raised issues about former President Trump and his family's involvement in this area. The connection with World Liberty Financial has drawn particular attention, as the platform has generated over $500 million since its launch.
Critics also warned that the GENIUS Act could flood the market with privately issued stablecoins, forcing consumers to handle different currencies at every retailer. Some suggested centralized apps could solve the problem, but this would add another inconvenience and hacking risk as users would need to set up their own cryptocurrency wallets.
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