Fed Chair Warsh Says They Are Racing to Establish GENIUS Act Rules
Fed Chair Warsh stated that the Federal Reserve is racing against time to issue relevant rules for the GENIUS Act before Saturday.
Warsh emphasized that today’s data does not mean the "mission is accomplished" and that one should not assume everything is fine just because the CPI report has been released.
Market mechanisms interpreted this as a signal for accelerated policy-making, with short-term funds flowing into regulated innovative assets, benefiting sectors related to fintech and stablecoins while putting pressure on speculative funds.
Source: Public Information
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Warsh has previously pushed for rapid legislative frameworks in regulatory discussions, similar to how the Fed accelerated the establishment of guidelines for stablecoins and digital assets during the regulatory vacuum from 2022 to 2023, having previously implemented emergency rules to address market volatility.
On the capital pathway, the Fed and the Treasury are concentrating resources on the formulation of GENIUS Act rules, motivated by the desire to seize the initiative in setting digital finance standards, strategically positioning U.S. institutions to maintain a competitive edge globally.
Following the swift implementation of the EU's MiCA, the Fed is now in a phase of accelerated transformation in digital asset regulation, aiming to finalize key provisions before the weekend.
This essentially represents a regulatory change, with the Fed racing to fill the legislative gap of the GENIUS Act through rapid rule-making, where the mechanism is to compress uncertainty within the time window to guide capital into the regulated digital innovation sector in an orderly manner rather than allowing for chaotic expansion.
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Rules taking the lead allow capital to run ten steps ahead.
Data is not the endpoint; rules are the new starting point.
Racing against time in regulation is the true safeguard for innovation.