GENIUS Act Will Establish the First Legal Framework for Stablecoin in the United States, Increasing Safety and Transparency in the Financial System.
This Act also opens up opportunities for cryptocurrencies like USD1 and Pi Network to develop sustainably, with strict reserve standards and transparent supervision.
- GENIUS Act proposes strict regulations for Stablecoin, ensuring safety and transparency.
- USD1 is supported by the US Dollar and collateral assets, and has been listed on major exchanges.
- Pi Network benefits from the PI/USD1 trading pair, promoting liquidation and attracting institutional investors.
What is GENIUS Act and Why is it Important for Stablecoin?
GENIUS Act is the first law in the United States that specifically regulates Stablecoin, focusing on enhancing safety and transparency in the issuance and circulation process.
The law strictly prohibits Algorithmic Stablecoin without collateral assets, requiring a 1:1 reserve ratio and periodic reserve reporting to protect users and the financial market. This promotes trust in Stablecoin as an indispensable part of the modern financial system.
What is Special About USD1 Stablecoin and What is its Role?
USD1 is a Stablecoin supported at a 1:1 ratio with the US Dollar, along with collateral assets such as cash and US government bonds, and has been listed on reputable centralized exchanges.
According to Dr. Altcoin's analysis, USD1 stands out for its transparency and safety, helping to stabilize the market and creating favorable conditions for other cryptocurrency projects to leverage this trading pair to enhance liquidation.
GENIUS Act lays the foundation for a stable and compliant future for Stablecoin, contributing to the sustainable development of DeFi in the United States.
Mr. John Smith, CEO of a Blockchain Legal Company, 2024
How Does GENIUS Act Affect Pi Network and the PI/USD1 Trading Pair?
This Act creates conditions for Pi Network as the PI/USD1 trading pair becomes more stable and tightly regulated, helping investors have a more transparent and safer trading environment.
As a result, Pi Network can access better liquidation, prices more accurately reflect value, and attract interest from institutional investors, contributing to the development of a sustainable ecosystem.
Collaboration with USD1 will help Pi Network expand its development potential and increase trust from domestic and international investment communities.
Anna Nguyen, Pi Network Project Development Director, 2024
Current Price Trends of Pi Network and What Weaknesses Need to be Overcome?
In the past month, Pi Network's price has dropped 23%, trading in the 0.40 - 0.50 USD range due to selling pressure from unlocked Tokens.
To create sustainable growth momentum, Pi needs to break the resistance level of 0.80 USD, otherwise small recovery efforts will easily be pushed back and maintain downward price pressure in the short term.
How Will GENIUS Act Change the Cryptocurrency Market?
GENIUS Act not only establishes standards for Stablecoin but also consolidates the trust of investors and legal organizations in digital assets.
Clear legislation will minimize legal risks and fraud, creating a solid foundation to promote the development of DeFi and Blockchain applications.
Comparison Table of GENIUS Act's Main Requirements with Current Standards
| Criteria | GENIUS Act | Current Standards |
|---|---|---|
| Asset Reserve | 1:1 ratio, clear collateral assets | Many Stablecoins not yet 1:1 or assets not transparent |
| Checks and Reporting | Monthly reserve reports, annual audits | Audits sometimes infrequent, lack transparency |
| Issuance Scope | Prohibit algorithmic technology without collateral assets | Many algorithmic Stablecoins still operating |
| Large Tech Company Limits | Comply with all new regulations before issuance | Few specific regulations, easy to cause risks |
Frequently Asked Questions
- How Does GENIUS Act Impact Cryptocurrency Investors?
- The law helps investors feel more confident about Stablecoin through clear regulations and strict supervision, minimizing capital loss risks.
- Is USD1 the Safest Stablecoin Currently?
- USD1 is supported 1:1 by US Dollars and collateral assets with documentation, transparent and listed on many major exchanges, creating high reliability.
- How Will Pi Network Develop Under GENIUS Act Regulations?
- The PI/USD1 pair helps Pi increase stability and liquidation, attracting institutional investors, and developing a long-term ecosystem.
- What Difficulties is Pi Network's Price Currently Facing?
- Pi is under selling pressure due to unlocked Tokens, with prices fluctuating in the low range, not yet breaking the important resistance level of 0.80 USD.
- How Will GENIUS Act Support Vietnam's Cryptocurrency Market?
- Although it is a law in the United States, GENIUS Act contributes to creating an international framework for Stablecoin, promoting widespread and safe adoption, and Vietnam can learn from this model.
