'Genius Act' Passes US House… Stablecoin Stocks Surge

Korea Economic Daily

Summary

It was reported that as the stablecoin bill passed the US House, strong buying was observed in related stocks.
The bill mandates anti-money laundering law compliance and holding reserves of liquid assets for stablecoin issuers.
With the passage of the cryptocurrency bill, clarification of digital asset regulations and ban on central bank digital currency issuance have been achieved.

Stocks related to stablecoins are soaring. After the Fed passed a bill to incorporate stablecoins into the institutional framework, buying has intensified for domestic stocks linked to the sector.

As of 9:34 a.m. on the 18th, Thezen is trading at 6,110₩, up 710₩ (13.15%) from the previous day. Nexxus (9.06%), Bankware Global (4.86%), Kakao Pay (4.68%), and Danal (2.23%) are also rising. These companies are pursuing businesses related to stablecoins.

The passage of the stablecoin bill by the House seems to have ignited investor sentiment. On the 17th (local time), the United States House of Representatives convened a plenary session and passed the 'Genius Act' with 308 votes in favor and 122 against. The bill was enacted to provide a regulatory framework to promote the use of stablecoins by defining their legal status, issuance procedures, and disclosure obligations.

Specifically, it stipulates that stablecoin issuers must comply with US anti-money laundering and sanctions laws and maintain reserves backed by US dollars and short-term government bonds as liquid assets.

In addition to the stablecoin bill, a cryptocurrency bill was also passed. The 'Digital Asset Market Clarity Act' defines digital assets and specifies the regulatory authority between the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC), thereby clarifying cryptocurrency regulations. The third bill prohibits the Fed from issuing a central bank digital currency.

Jin Young-gi, Hankyung.com reporter young71@hankyung.com