‘Stablecoin summer’: Crypto community greets GENIUS Act with optimism, caution

Editor’s note: This story was originally published by Missouri Business Alert, a member of the Kansas City Media Collective, which also includes Startland News, KCUR 89.3, American Public Square, Kansas City PBS/Flatland, and The Kansas City Beacon.

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A new federal cryptocurrency law has sparked a range of reactions across Missouri, with some hailing it as a chance to get people in the market and others questioning its broader implications.

Mary McCawley, Digital Dreams KC

Mary McCawley, founder of the digital art initiative Digital Dreams KC and the blockchain community group KC Blockchain Collective, is supportive of the legislation.

“The markets have been surging since this passed,” McCawley said. “People are saying it’s a stablecoin summer, and there’s a lot of excitement right now around it.”

President Donald Trump signed the GENIUS Act on Friday, creating the first national regulation for cryptocurrency. The law — which had support from all Missouri’s congressional delegation except for Sen. Josh Hawley and Reps. Eric Burlison and Emanuel Cleaver — will “establish a regulatory framework for payment stablecoins.”

Stablecoins are a type of cryptocurrency whose value is pegged to that of another asset, such as the U.S. dollar. They differ from other cryptocurrency because they are designed to maintain stable value.

Trump-appointed regulators and national industry leaders celebrated the move, saying it helps legitimize digital currency. Paul Atkins, chairman of the U.S. Securities and Exchange Commission, issued a statement calling the signing a “monumental step.” Summer Mersinger, CEO of the Blockchain Association, an industry group, published a statement on social media declaring the passage “a major step forward” in establishing rules for the future of financial technology.

Traditional financial institutions have begun shifting toward crypto-friendly strategies in light of the legislation, as Bank of America and Citibank consider launching stablecoins and JPMorgan Chase expresses heightened interest in them.

Though many in the crypto industry celebrated the GENIUS Act’s passage, some are holding their applause.

McCawley said this legislation looks like a step toward giving the U.S. a clear stance on stablecoin, but said there is still a lot left to do before calling it a triumph.

“If it’s done right, it could open up real opportunities for small businesses and innovation, especially in payments and financial access,” she said. “Without meaningful follow-through, it risks becoming just another headline with no impact on the ground.”

McCawley isn’t the only one cautious about the act.

Geoff Jones, a day trader and real estate appraiser from the St. Louis area, said he sold all his cryptocurrency on Thursday, the day before the act passed. The move helped ease his stress over a “hyped” digital market.

“I think when everybody’s super hyped on things,” Jones said, “it’s never a bad idea to take profit and wait.”

Aviral Shukla, Altair

Aviral Shukla is the founder of Altair, a St. Charles bitcoin mining business and consultancy. Despite optimism in the industry, he is skeptical of what cryptocurrency legislation could mean.

“Although crypto going through this regulatory process is a sign of growing up and being recognized as something legitimate, I think it also legitimizes a lot of bad actors in the space,” Shukla said.

Kris Konicki, customer support specialist at Altair, said it will take time to see how cryptocurrency laws actually play out.

“These bills are massive, and it’s gonna take a while for everybody to actually comb through all of these different acts,” Konicki said. “Not only comb through them, but then how are they actually going to be implemented in real life?”

Two other cryptocurrency bills are on their way to the Senate. The Clarity Act would create a new market structure for cryptocurrency, while The Anti-CBDC Surveillance State Act would prohibit the Federal Reserve Bank from issuing a new digital currency.

Konicki said those two bills may have an impact on bitcoin, affecting Altair’s business.

“It might reduce the volatility of bitcoin a little bit, give it a little bit more rules and guidelines for institutional investors to go ahead and either create products or invest on behalf of their customers,” he said.

Geoff Jones

Jones also is unsure of the implications of the new law and pending legislation. He has been involved with cryptocurrency for about eight years, having learned about it through YouTube, podcasts and books. His real estate appraisal business soared during the COVID-19 pandemic, so he decided to use the extra funds to invest into bitcoin.

As laws form around cryptocurrency, Jones said he is concerned that large corporations may be able to more easily avoid oversight.

“What they’ve done is privatized the digital currency creation space,” he said. “So corporations can be in control of issuing digital currencies that have the backing of the Federal Reserve, and that moves them outside of the congressional oversight that the Federal Reserve would have.”

Ryan Wright, Missouri chapter president of the cryptocurrency advocacy group Stand With Crypto, said the legislation is a positive move for the industry, but he also sees other perspectives.

“I understand a lot of the anxiety around cryptocurrency, and I also understand a lot of the left-behind feelings with cryptocurrency. It does seem like it could be a rigged game,” he said. “But, there’s always been crime with cash. There’s always been crime with all sorts of mediums.”

Wright is teaming up with several local groups, including McCawley’s Digital Dreams KC and the KC Blockchain Collective, to host a celebration of Missouri crypto and the passage of the GENIUS Act. The event takes place Thursday at the Mod Gallery in Kansas City and, along with two more sessions in the fall, aims to answer foundational questions about crytpo.

“The time is now to try to get people’s attention,” McCawley said, “and let them know why this affects them and why they should care.”

As the community grows, she said the “long-overdue” legislation is moving the U.S. in the right direction.

“Businesses are starting to take interest in how to implement this because of the GENIUS Act’s framework,” McCawley said. “I think that it positions the U.S. as a leader in digital innovation if we don’t drop the ball on this.

“I feel like we’ve all been working towards this for so many years that it’s really exciting to see it actually happening.”