The GENIUS Act for crypto global transparency

There has been enormous national and international interest in the U.S. Congress passing the Genius Act¹, with strong support from both Democrats and Republicans. The crypto world has, of course, generated much more heat than light.

There is a mixture of enthusiasts who find crypto and the blockchain to be the essence of financial freedom, safe from government regulation. There is also a cadre of scammers and fast-buck artists who make easy money on speculative, risky deals. There is, as well, the billions globally of the unbanked for whom carefully regulated crypto can represent both lower international trading costs dropping from dollars to pennies.

The value of regulated crypto

Working with the Renco Manufacturing group at a factory in Colebrook, New Hampshire, that includes American Performance Polymers, we examined opportunities to support and improve medical glove manufacture and a new high-performance data center.

The plant near the Canadian border has an on-site connection to the TransCanada pipeline. The plan we are developing utilizes low-cost Canadian natural gas treated with high-temperature natural gas pyrolysis technology², which breaks down natural gas into its molecular components of hydrogen and solid carbon, thereby eliminating carbon dioxide emissions. Green hydrogen will power medical glove manufacture and data center operation.

Suddenly, the regulated crypto blockchain might make it possible under the regulations of the Genius Grant to provide stablecoins for regulated, monitored, and financed operations. And more broadly, there are potential opportunities to form a sales tool for global marketing of Canadian natural gas.

The Genius Act acronym stands for “Guiding and Establishing National Innovation for U.S. Stablecoins Act”. Stablecoins under the Act Genius Act must follow the detailed regulations to be promulgated by federal and state regulations to be finalized over the next 18 months. Regulations require stablecoin providers to maintain a minimum of 100 percent coverage for the total value of the stablecoin, which is to be verified monthly in accordance with detailed federal and state regulations. It will take a year for detailed regulation to be completed and another 120 days to take effect, or 18 months after enactment, whichever comes first.

It’s important to understand that stablecoins, in some ways, are far better protected than U.S. Bank requirements, which often require less than 10% coverage, which led to the 2018 global financial collapse. This meant that large asset holders not covered by insurance of $250 000 in the U.S. were wiped out. Fortunately for the speculators, the world’s central banks bailed out the world’s bankers for their greedy risks. And few, if any, bankers went to jail, lost their jobs, and were held for losing many billions. The banks and insurance companies were recapitalized as too big to fail

In 2018, Bear Stearns was acquired by JPMorgan Chase with the assistance of the Federal Reserve. The next day, the Federal Reserve provided support for the insurance giant AIG. Citigroup and Bank of America sought support from the Federal Reserve, Treasury, and the FDIC. New programs from the Fed supported financial markets and institutions, provided liquidity to money markets and the commercial paper market, and extended credit to U.S. holders of high-quality securities, among other measures.

It’s essential to note that if stablecoins are carefully regulated, have at least 100 percent of their assets, and are closely monitored, that’s a step in the right direction. But it is also true that a stable coin might fail, and it makes sense for investors to have a broad variety of Stable Coins to limit potential losses. Investment in any type of security will provide a variety of Stable Coin holdings for consumers to reduce losses to minuscule amounts.

European stablecoins

There are numerous stablecoins pegged to the Euro. As non-dollar coins, they capitalize on the current uncertainty surrounding the dollar amid trade confusion resulting from U.S. efforts to impose substantial, unclear, and arbitrary tariffs on U.S. trading partners.

The developing dollar U.S.-regulated stablecoins represent a massive challenge for European stablecoins. If the U.S. resolves its tariff concerns, the dollar dominance regulated by the Fed will be irresistible as a means globally for ultra-low-cost blockchain transactions based on international trade in dollars as a global reserve currency. The major caveat, of course, if the dollar is unstable, it starts to lose its value and its position as global reserve currency. In this case, the Euro could emerge as an international challenger to dollar dominance, and a Euro-based coin could become a real challenge to dollar dominance.

It’s important to understand that the BRICS³ originally comprised Brazil, Russia, India, China, and South Africa, now including Egypt, Ethiopia, Indonesia, Iran, and the United Arab Emirates. An increasingly powerful group that can now trade with one another and use local currencies, as well as trade internationally using the Chinese renminbi to settle contracts, represents 47% of intra-BRICS trade. BRICS in 2025 represent about 30 percent of global GDP, while the G-7 is now 42% of global GDP.

To the extent that the U.S. continues its tariff wars and deficit spending, it will encourage the end of the dollar as the global reserve currency. There are clear limits for China to replace the dollar. China is not a clear, open, and reliable system. Nations can trade in their currency with one another, but global confidence in the dollar under the SWIFT system remains the hallmark of global trade.

Euro stablecoins

At the moment, there are several Euro-based stablecoins:

1. Euro Coin issued by Circles backed by Euro reserves held in European Financial institutions.

2. Euro Coin Vertible (EURCV) Issued by Forge, a subsidiary of Société Générale, integrates with traditional banking infrastructure and is compliant with the EU’s MiCA regulation, and instead focuses on non-European countries facing high inflation and currency instability.

3. StablR Euro (EURR) is a Euro-backed stablecoin that leverages Tether’s tokenization platform, Hadron. Tether has recently decided not to adopt the 2025 European MiCA crypto regulation, instead focusing on high profits in non-EU states with high interest rates and currency instability.

4. Stasis Euro(EURS) is a Euro-backed stable coin popular in European markets and a hedge against cryptocurrency and USD-based asset volatility

5. Eurite (EURI) issued by Banking Circle is a Euro-backed stable coin designed for fast and borderless digital payments and built to meet the MiCA standard.

2025 European regulation

In December 2024, the European Union established a comprehensive framework for digital assets, known as the Markets in Crypto-Assets Regulation (MiCA), which includes strict regulations for stablecoins. Required are 100% high-quality liquid reserves held in European banks. Transparent reserves are measured regularly. Stable Coin issuers licensed as electronic money institutions (EMIs) and supervised by European financial authorities.

MiCA serves as the foundation for the development of large-scale stablecoins, aiming to enhance cross-border payments and mitigate cryptocurrency market volatility. A strong Euro, under MiCA, with well-regulated stablecoins, represents attractive international trading opportunities.

Conclusion

Well-regulated and transparent regulation of stablecoins can become the basis for reliable and significantly lower costs for international trade, as well as taking advantage of the billions of the world’s unbanked population. The social aspects can be enormous

The dynamics of stablecoin development will depend in many ways on the stability and clarity of international financial systems. Are we following the path that supports the Swift System and the U.S. dollar, or will we follow paths that provide several reliable alternatives for all?

From the standpoint of a single factory engaging in international trade, the success of the reliable stablecoins promises increased trade and reduced fees that will make business increasingly transparent and lucrative for both producers and purchasers.

Notes

¹ Treasury Issues Request for Comment Related to the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act at U.S. Department of the Treasury.
² A review of methane pyrolysis technologies for hydrogen production on ScienceDirect.
³ About the BRICS at BRICS Website.

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