Sygnum’s Fabian Dori Highlights Use Cases For GENIUS Act

Market observers have been raving about the GENIUS Act, highlighting its prospects, especially for the United States’ crypto regulatory landscape. Now, Sygnum Chief Investment Officer (CIO) Fabian Dori is going on and on about how the full legislation paves the way for real-world use cases.

New Stablecoin Law to Change Landscape

The GENIUS Act was passed into law by President Donald Trump less than two weeks ago, marking a historic moment for the broader cryptocurrency sector. It marked the first significant piece of legislation in the US since the Republican politician assumed the presidency for the second time.

Based on its requirement for issuers to maintain a strict 1:1 reserve backing, this law could change the stablecoin landscape. According to Dori, achieving this feat would require that issuers be redirected from yield-based models and moved toward payment-focused use cases. 

US GENIUS Act is Beyond Regulation

He described the GENIUS Act as creating a clear separation between stablecoins that bear interest or yield and those utilized for payments. 

With the GENIUS Act, Dori says the US crypto regulatory framework is inching closer to the EU’s Markets in Crypto-Assets (MiCA) regulation, which became effective on December 30, 2024.

Should this be the case, these legislations are setting the pace for “global consensus.” Beyond regulation, the real impact of the GENIUS Act lies in giving confidence to organizations and issuers so that they are equipped enough to develop original, innovative ‘killer apps.’ 

These are apps that serve both customers’ current needs and create demand for entirely new services.

Stablecoin Draws in Mastercard and Visa

It is worth noting that many traditional organizations have begun to enter the stablecoin niche, with a focus on regulatory compliance. 

In May, Mastercard partnered with MoonPay to facilitate global stablecoin payments. The initiative focuses on simplifying on-ramp and off-ramp payments, similar to a Venmo or Zelle system. 

Visa, another financial giant, also inked a strategic stablecoin deal with London-based fintech company BVNK. The plan is to leverage BVNK’s stablecoin payment infrastructure to further establish itself in blockchain-based settlement technologies. 

Additionally, Anchorage Digital plans to issue a new digital dollar called USDtb, developed by Ethena Labs. This is the first stablecoin to comply with all the rules outlined in the GENIUS Act.

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