GENIUS Act: Experts Say Regulatory Clarity Is Just the Beginning
The conclusion of Crypto Week, marked by the passage of the GENIUS Act, has been hailed as a significant step forward for the cryptocurrency industry. However, experts suggest that this regulatory clarity is merely the foundation for future growth and integration.
Clarity: A Starting Point
Leo Fan, co-founder of Cysic, stated, “Clarity is just a starting point, not an endpoint.” He emphasized the need for scalable blockchains, instant verification systems, and trusted custody solutions to further integrate cryptocurrencies into mainstream finance.
Fan acknowledged that the GENIUS Act provides essential “legal clarity” by formally recognizing that not all crypto assets are securities. This “foundational shift” gives developers, investors, and institutions the confidence to build and deploy solutions within clear legal boundaries.
He added that crypto is increasingly seen as foundational infrastructure, paving the way for real-world applications in finance, identity, and privacy. “With the legal groundwork forming, the path is clearer for real-world integration,” Fan noted.
DeFi Is Here to Stay
Altan Tutar, co-founder and CEO of MoreMarkets, views the GENIUS Act as “the best sign yet that DeFi is here to stay.” He noted that the U.S. is catching up with Asia in terms of crypto adoption.
Tutar believes the legislation will significantly drive stablecoin adoption, allowing traditional assets like gold and oil to be tokenized and expanding DeFi into new sectors. However, he cautioned that regulatory clarity primarily benefits institutions and stressed the importance of developing payment systems and earning opportunities for retail investors.
Ryan Chow, CEO of Solv Protocol, echoed this sentiment, stating that Crypto Week “laid the legal foundation for digital assets for legal clarity and structural legitimacy,” ending years of regulatory uncertainty that hindered institutional adoption. He called the GENIUS Act’s distinction between decentralized digital assets and traditional securities “monumental,” providing builders and investors with the confidence to innovate.
Chow urged the development of “Bitcoin-backed credit, tokenized treasuries, and yield tied to real assets” with transparent risk pricing and built-in compliance.
Beyond Regulation
Will K, CEO of VOOI and co-founder of Symbiosis.Finance, emphasized that regulation alone is insufficient. He highlighted the necessity of mature infrastructure, simplified user experiences, and AI-driven tools to level the playing field.
Without these elements, crypto risks remaining a niche ecosystem. “The industry needs to stop building for crypto natives and start building for everyone else,” Will warned.
The GENIUS Act, which passed with bipartisan support, establishes the first federal framework for stablecoins.
Codeum offers smart contract audits and security consultations to help ensure your blockchain projects meet the highest standards of security and compliance. Contact us for a consultation.