- The GENIUS Act passed with over 300 House votes, creating America’s first federal framework for stablecoins.
- Industry leaders say DeFi is here to stay, but regulatory clarity is the starting point for broader crypto adoption.
- Success requires better infrastructure and user-friendly apps beyond just legal frameworks.
The recently concluded Crypto Week delivered significant regulatory milestones with the passage of the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act. The legislation secured overwhelming House support with over 300 votes, including backing from 102 Democratic representatives.
The GENIUS Act establishes the first comprehensive federal framework for stablecoins in the United States. This landmark legislation formally recognizes that not all crypto assets qualify as securities, creating clearer legal boundaries for the digital asset ecosystem.
Industry Leaders Highlight Foundational Impact
Leo Fan, co-founder of Cysic, characterized the regulatory progress as a “foundational shift” that provides developers, investors, and institutions with clearer legal guardrails. Fan emphasized that crypto is now recognized as foundational infrastructure, opening pathways for integration across finance, identity, and privacy systems.
“Legal clarity is just a starting point, not an endpoint,” Fan stated, pointing to ongoing needs for scalable blockchains, instant verification systems, and trusted custody solutions.
Altan Tutar, co-founder and CEO of MoreMarkets, described the GENIUS Act as “the best sign yet that DeFi is here to stay.” Tutar noted the legislation positions the US to close the adoption gap with Asian markets while driving meaningful stablecoin adoption.
The regulatory framework enables tokenizing traditional assets, including gold and oil, potentially expanding DeFi into new market territories. However, Tutar cautioned that regulatory clarity primarily benefits institutional players over retail investors.
Beyond Regulation: Infrastructure and User Experience Challenges
Ryan Chow, CEO of Solv Protocol, highlighted how Crypto Week established legal foundations that end years of regulatory uncertainty hampering institutional adoption. The GENIUS Act’s distinction between decentralized digital assets and traditional securities represents a “monumental” development for market participants.
Chow emphasized that while clarity provides necessary groundwork, credibility builds sustainable markets. He advocated developing Bitcoin-backed credit systems, tokenized treasuries, and yield products tied to real assets with transparent risk pricing.
Will K, CEO of VOOI and co-founder of Symbiosis.Finance, warned that regulation alone cannot guarantee success. The industry requires mature infrastructure, simplified user experiences, and AI-driven tools to achieve mainstream adoption.
The GENIUS Act’s passage signals a shift toward treating digital assets as legitimate financial infrastructure rather than speculative instruments. This regulatory recognition creates opportunities for institutional investment and traditional asset tokenization.
However, industry experts stress that legal frameworks represent only the foundation for broader crypto integration. Success depends on developing user-friendly applications, robust infrastructure, and earning opportunities for retail participants.
The legislation’s bipartisan support demonstrates growing political consensus around digital asset regulation. This regulatory certainty may accelerate institutional adoption while establishing the United States as a competitive jurisdiction for crypto innovation.
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