The US Passed the Landmark GENIUS Act

The US passed its landmark GENIUS Act, bringing President Trump closer to his pledge of making the US the “crypto capital of the world.”

Unfortunately for Trump, no matter what his administration does, these efforts may be in vain. The UAE will always be the true homeland of crypto.

The act, signed by Trump in July, is more crypto-positive legislation from the States and a crucial part of his administration’s mission to elevate the US’s position in DeFi.

> TRUMP: 🇺🇸 “The Golden Age of America is upon us, with today’s signing.”
> President Trump signs the Genius Act, marking the first step in Stablecoin legislation.

Stablecoin Regulations in the US

The GENIUS Act establishes a regulatory framework for stablecoins in the US, integrating them into the regulated capital market and enforcing stricter anti-money laundering compliance on issuers like Circle and Tether. This legislation has already boosted confidence in digital assets and inspired major Wall Street firms to launch their stablecoins.

With global banks embracing cryptocurrencies, it’s understandable why Trump perceives this act as giving the US a competitive advantage. However, the UAE has been making significant advances in this area for years.

The UAE has actively attracted crypto entrepreneurs to establish their businesses by implementing clear regulatory frameworks. The Virtual Asset Regulatory Authority (VARA) in Dubai is looking for ways to ease the regulatory burden on smaller firms, fostering innovation and collaboration within the industry.

> VARA is exploring ways to alleviate costs for smaller crypto firms, with support models proposed by larger entities.

The UAE Central Bank (CBUAE) and VARA offer thorough oversight of digital assets, ensuring consumer security and fostering a transparent, legitimate crypto market.

Dubai Sets the Standard

The UAE has been quicker than the US to establish regulatory measures, which has allowed it to reap substantial benefits. VARA was set up in 2022, and Abu Dhabi’s FSRA enacted its first regulatory framework in 2018, giving it a seven-year lead over the US’s GENIUS Act.

Additionally, the UAE applies zero tax on crypto income and capital gains, making it difficult for countries like the US and EU, which have higher tax rates, to compete.

The nation encourages crypto investment and trading, paving the way for the integration of digital assets into its financial infrastructure. By 2026, the UAE will support its central bank digital currency, the Digital Dirham, across all financial institutions.

In Dubai, it’s even possible to purchase a home using Bitcoin, supported by CBUAE and VARA, showcasing the UAE’s commitment to advancing crypto as a key economic element.

A Destination for Crypto Issuers

Given the supportive approach, the UAE is the top destination for crypto issuers and exchanges. Noteworthy players, including OKX, have started regulated crypto derivatives for retail investors, and over 500 crypto startups operate within the country.

These ventures are attracted to the UAE’s proactive regulatory environment and robust infrastructure. In contrast, the US’s GENIUS Act lacks a competitive edge to challenge the UAE’s lead.

Ultimately, the UAE has embraced digital assets unlike any other global market, solidifying its position as the crypto motherland.

Bitcoin Ownership Rate

The UAE boasts the highest global Bitcoin ownership rate at 27.2%, indicative of a strong appetite for crypto. Given this landscape, it is no surprise that the UAE is so well-regarded in the crypto community.

In the end, the UAE is far ahead in its approach to DeFi, and no regulatory changes in other markets will close the gap. The UAE will always be the pinnacle of the crypto world.