Circle executive: A provision in the GENIUS Act aims to prevent large technology companies and banks from dominating the stablecoin market

Odaily News Dante Disparte, chief strategy officer of Circle, said on the Unchained podcast that the GENIUS Act contains a little-known provision aimed at preventing big tech and Wall Street giants from dominating the stablecoin market. Any non-bank institution that wants to issue a token pegged to the US dollar must set up an independent entity that is more like Circle than a bank, clear antitrust obstacles, and accept a veto from the Treasury Committee. Disparte pointed out that lenders that issue stablecoins must hold them in legally independent subsidiaries and put these stablecoins on their balance sheets that take no risk, provide no leverage, and provide no loans. This structure is even more conservative than the deposit token model proposed by JPMorgan and other institutions. He added: It sets clear rules, and I think the biggest winners in the end are American consumers and market participants, and frankly, the dollar itself. (Cointelegraph)