{"id":9326,"date":"2025-08-30T15:23:04","date_gmt":"2025-08-30T15:23:04","guid":{"rendered":"https:\/\/bitunikey.com\/news\/the-genius-act-is-too-little-too-late-for-us-crypto-opinion\/"},"modified":"2025-08-30T15:23:07","modified_gmt":"2025-08-30T15:23:07","slug":"the-genius-act-is-too-little-too-late-for-us-crypto-opinion","status":"publish","type":"post","link":"https:\/\/bitunikey.com\/news\/the-genius-act-is-too-little-too-late-for-us-crypto-opinion\/","title":{"rendered":"The GENIUS Act is too little, too late for US crypto | Opinion"},"content":{"rendered":"<div class=\"post-detail__content blocks\">\n<div class=\"cn-block-disclaimer\">\n<div class=\"cn-block-disclaimer__icon\">\n            <svg class=\"icon icon-info\" aria-hidden=\"true\"><use xlink:href=\"#icon-info\"><\/use> <\/svg>        <\/div>\n<p class=\"cn-block-disclaimer__content\">\n            Disclosure: The views and opinions expressed here belong solely to the author and do not represent the views and opinions of crypto.news\u2019 editorial.        <\/p>\n<\/p><\/div>\n<p><!-- .cn-block-disclaimer --><\/p>\n<p>Trump\u2019s GENIUS Act is in the hot seat of global crypto news, and everyone\u2019s got an opinion on what it might mean for U.S. DeFi. For me, at least, while it\u2019s certainly a good step forward, Trump\u2019s move will simply not be enough to topple the UAE from the crypto throne. Regardless of this new legislation, the UAE will forever be the industry\u2019s heavyweight champion.<\/p>\n<div id=\"cn-block-summary-block_51f680fe936fcbcb51a0205552b63362\" class=\"cn-block-summary\">\n<div class=\"cn-block-summary__nav tabs\">\n        <span class=\"tabs__item is-selected\">Summary<\/span>\n    <\/div>\n<div class=\"cn-block-summary__content\">\n<ul class=\"wp-block-list\">\n<li>GENIUS Act ensures stablecoin backing, AML compliance, and consumer protection, yet won\u2019t kick in until mid-2026 and leaves most digital assets untouched.<\/li>\n<li>UAE set the pace years ago, with FSRA (2018) and VARA (2022), plus tailored licensing, custody rules, and fraud prevention, the UAE built a mature crypto framework while the U.S. lagged.<\/li>\n<li>The UAE\u2019s Digital Dirham and zero-tax regime make it a magnet for investors, while the U.S. bans CBDCs and burdens crypto with high taxes.<\/li>\n<li>Innovation follows capital \u2014 With 500+ crypto startups, record FDI, and OKX choosing it for retail derivatives, the UAE has cemented itself as the world\u2019s crypto hub \u2014 far ahead of the U.S.<\/li>\n<\/ul><\/div>\n<\/div>\n<p><!-- .cn-block-summary --><\/p>\n<p>Now, don\u2019t get me wrong, the GENIUS Act is certainly a positive, proactive piece of crypto policymaking from the U.S. government. It will ensure that stablecoins are pegged one-for-one by their respective assets, treat issuers \u2014 like Tether (USDT) \u2014 as financial institutions under the Bank Secrecy Act, and provide stronger consumer protection by holding issuers to a higher standard of anti-money laundering compliance.<\/p>\n<p>    <!-- .cn-block-related-link --><\/p>\n<h2 class=\"wp-block-heading\">It\u2019s just not enough\u00a0<\/h2>\n<p>The legislation, signed last month, only addresses stablecoins \u2014 not digital assets as a whole. Plus, it won\u2019t take effect until at least mid-2026, as regulators still need time to craft the necessary rules for implementation. Even with it, the fact is that the country will still be a far cry away from the \u201ccrypto capital of the world\u201d that President Trump promised.<\/p>\n<p>Realistically, if the U.S. ever had any hope of taking the UAE\u2019s crown, it needed to be quicker out of the blocks. GENIUS is too little, too late, and there are a few reasons why.\u00a0<\/p>\n<p>For a start, the UAE began refining its crypto regulation as early as 2018, with the establishment of Abu Dhabi\u2019s Financial Services Regulatory Authority (FSRA). Dubai then established the Virtual Assets Regulatory Authority (VARA) in 2022. All in all, the region offers a mature regulatory infrastructure that provides bespoke licensing, trading, custody oversight, and fraud prevention for crypto. The GENIUS Act may be the United States\u2019 first landmark crypto regulation, but, frankly, it\u2019s seven years too late to compete.<\/p>\n<p>Then there\u2019s the fact that the Central Bank is launching its own CBDC \u2014 the Digital Dirham \u2014 which will be supported by all financial institutions registered in the UAE as soon as 2026. For me, the jury is out on the efficacy of CBDCs, but nonetheless, the UAE is going beyond simply accepting digital currency to making it a pillar of its economy.\u00a0<\/p>\n<p>The U.S., on the other hand, has gone in the complete opposite direction \u2014 Trump has signed an executive order preventing federal agencies from issuing or endorsing central bank digital currencies. So, it\u2019s not just a feeling that the U.S. is light-years behind \u2014 the fact is that the U.S. has actively positioned itself against some developments in the decentralized finance space.<\/p>\n<p>Of course, there is also another \u2014 and perhaps more obvious \u2014 nail in the coffin for the U.S.\u2019s crypto ambitions. Tax.\u00a0<\/p>\n<p>The UAE imposes zero tax on income and capital gains made from crypto, which is, by all means, an attractive incentive. Compared to high-tax jurisdictions like the EU and the U.S., it\u2019s an obvious top choice for investment activity. Put simply, instead of turning away from crypto activity and investment, the country is actively encouraging it.<\/p>\n<p>In light of the above, it\u2019s clear why the UAE has become the perfect incubator for DeFi innovation. And where investment goes, innovation follows.<\/p>\n<p>OKX, the world\u2019s second-largest cryptocurrency exchange, is underway with launching regulated crypto derivatives for retail investors in the region, where access was previously gatekept for professionals. OKX\u2019s choice of the UAE as its launchpad only reinforces the country\u2019s position as a superior crypto market. OKX and its people have been drawn to the UAE by its mature infrastructure, clear regulatory environment, and consistent innovation.<\/p>\n<p>Of course, the UAE is well incentivized to keep a tight hold on its title as crypto\u2019s first-choice market. The country is home to an astronomical 516 crypto startups and over 1,000 blockchain tech startups. Plus, the country\u2019s foreign direct investment is at an all-time high after bringing in a record-breaking AED 167.6 billion in capital inflows in 2024 \u2014 making it the world\u2019s 10<sup>th<\/sup> largest recipient of FDI. Considering everything, I can\u2019t imagine the UAE\u2019s conveyor belt of crypto-positive regulations will slow down anytime soon.<\/p>\n<p>If the U.S. is still aspiring to become the world\u2019s pre-eminent crypto superpower, it\u2019ll need to fight tooth and nail. But as things stand, their latest legislation isn\u2019t timely or mighty enough to get them over the line.<\/p>\n<p>Perhaps FDI is why the UAE\u2019s government has thrown its full support behind DeFi advancements, or maybe it\u2019s that the UAE already has the highest Bitcoin (BTC) ownership rate worldwide. Either way, with its regulatory, innovation, and tax benefits, the country has pulled far ahead \u2014 and I don\u2019t see any other international market bridging the gap any time soon.<\/p>\n<p>    <!-- .cn-block-related-link --><\/p>\n<div class=\"cn-block-author author-card\">\n<div class=\"author-card__photo\"><\/div>\n<p><!-- .author-card__photo --><\/p>\n<div class=\"author-card__content\">\n<div class=\"author-card__name\">\n                Fiorenzo Manganiello            <\/div>\n<p><!-- .author-card__name --><\/p>\n<div class=\"author-card__bio\">\n<p><b>Fiorenzo Manganiello<\/b><span style=\"font-weight: 400;\"> is the co-founder and managing partner of investment firm LIAN Group. At LIAN Group, he has built and funded many successful technology companies across cryptocurrency, blockchain, digital infrastructure, and healthcare. Outside of the day-to-day of LIAN Group, Manganiello is an enthusiastic art collector and is particularly interested in contemporary and digital art. He is also a professor of blockchain technologies at Geneva Business School.\u00a0<\/span><\/p>\n<p>\u00a0<\/p>\n<\/p><\/div>\n<p><!-- .author-card__bio --><\/p>\n<div class=\"author-card__social\">\n<p><a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/www.linkedin.com\/in\/fiorenzomanganiello\/\" class=\"community-link\" target=\"_blank\" rel=\"nofollow\" aria-label=\"LinkedIn\"><\/p>\n<p>    <svg class=\"community-link__icon\" aria-hidden=\"true\">\n        <use xlink:href=\"#icon-social-linkedin\"><\/use>\n    <\/svg><\/p>\n<p><\/a><\/p>\n<p><a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/x.com\/manganiellofio\" class=\"community-link\" target=\"_blank\" rel=\"nofollow\" aria-label=\"Twitter\"><\/p>\n<p>    <svg class=\"community-link__icon\" aria-hidden=\"true\">\n        <use xlink:href=\"#icon-social-twitter\"><\/use>\n    <\/svg><\/p>\n<p><\/a><\/p><\/div>\n<p><!-- .author-card__social --><\/p><\/div>\n<p><!-- .author-card__content --><\/p><\/div>\n<p><!-- author-card --><\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Disclosure: The views and opinions expressed here belong solely to the author and do not represent the views and opinions of crypto.news\u2019 editorial. Trump\u2019s GENIUS Act is in the hot&hellip;<\/p>\n","protected":false},"author":1,"featured_media":9327,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-9326","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency"],"_links":{"self":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/9326","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/comments?post=9326"}],"version-history":[{"count":1,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/9326\/revisions"}],"predecessor-version":[{"id":9328,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/9326\/revisions\/9328"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media\/9327"}],"wp:attachment":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media?parent=9326"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/categories?post=9326"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/tags?post=9326"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}