GENIUS Act Aims to Regulate Stablecoins Boosting Pi Network's Price Potential

Coin WorldThursday, Jul 17, 2025 1:58 am ET
3min read
Aime RobotAime Summary

- The GENIUS Act mandates strict stablecoin regulations, including 1:1 reserve backing, audits, and bans on unbacked algorithms, reshaping crypto markets.

- USD1, a US dollar-backed stablecoin listed on exchanges like MEXC, enhances Pi Network's liquidity and attracts institutional investors.

- Trump's endorsement accelerates regulatory clarity, potentially pushing Pi's price beyond $1, though current trading at $0.44 faces resistance near $0.80.

The GENIUS Act, also known as “Guiding and Establishing National Innovation for US Stablecoins,” is poised to bring significant changes to the cryptocurrency landscape. Once enacted, this legislation will introduce the first official regulations for stablecoins in the United States, focusing on enhancing their safety, transparency, and integration into the financial system.

Analyst Dr. Altcoin highlighted the potential benefits for USD1, a stablecoin created by World Liberty Financial. USD1 is backed one-to-one with the US dollar and supported by assets such as cash and US Treasuries. It has already been listed on major centralized exchanges, including MEXC, where it is paired with Pi, Bitcoin, Ethereum, and other major cryptocurrencies.

The GENIUS Act includes stringent requirements. It prohibits unbacked algorithmic stablecoins, mandates one-to-one reserve backing, monthly public reserve updates, and yearly audits. It also restricts large technology companies from launching their own stablecoins unless they comply with all regulations. Additionally, the bill allows for the freezing or burning of tokens for national security reasons.

For the Pi Network, this presents a significant opportunity. The new PI/USD1 trading pair provides Pi users with access to a more stable, regulated, and trustworthy trading environment. This enhances accurate price discovery, improves liquidity, and makes Pi more attractive to institutional investors.

As USD1 gains popularity and gets listed on more exchanges, the Pi Network could see increased attention and usage. The GENIUS Act is not just about setting rules; it is about building a stable and compliant future for cryptocurrencies. With strong support and a growing ecosystem, the Pi Network and USD1 may be at the center of the next wave of crypto adoption.

The Pi Network has experienced a 23% drop over the past month and is currently trading at around $0.4399. The price has been moving sideways, staying within the $0.40 to $0.50 range as selling pressure continues to build due to the unlocked token supply.

For Pi to see a strong upward move, it needs to break above the $0.80 level. Until then, any small bounce from the current zone is likely to face resistance and lead to more price pressure.

The GENIUS Act, a bill aimed at regulating stablecoins in the United States, has recently gained significant traction. This legislation, which is currently being voted on by the House of Representatives, has the potential to reshape the digital asset landscape, particularly for cryptocurrencies like the Pi Network. The Pi Network, which launched its mainnet in February 2025, has experienced substantial growth, with its native token $PI surging by 171% within four days in early May. The passage of the GENIUS Act could provide a regulatory framework that fosters further growth and stability for the Pi Network, potentially pushing its price beyond the $1 mark.

The GENIUS Act is part of a broader effort to bring clarity and structure to the crypto market. Alongside the CLARITY Act, which focuses on market structure, the GENIUS Act specifically addresses the regulation of stablecoins. Stablecoins, which are designed to maintain a stable value, play a crucial role in the crypto ecosystem by providing a hedge against the volatility of other cryptocurrencies. The regulation of stablecoins could enhance investor confidence and attract more institutional investors to the market, which in turn could drive up the price of cryptocurrencies like the Pi Network.

President Donald Trump's endorsement of the GENIUS Act has added momentum to its passage. Trump's support for the bill has reignited hopes for comprehensive digital asset regulation, which could provide a more stable and predictable environment for crypto investments. This regulatory clarity could be particularly beneficial for the Pi Network, which has been gaining traction among users due to its user-friendly interface and innovative mining model.

The potential impact of the GENIUS Act on the Pi Network's price is significant. According to analysts' forecasts, the passage of the bill could create a favorable regulatory environment that supports the growth of the Pi Network. This could lead to increased adoption and investment in the Pi Network, potentially pushing its price beyond the $1 mark. However, it is important to note that the actual impact of the GENIUS Act on the Pi Network's price will depend on various factors, including market conditions and investor sentiment.

In conclusion, the GENIUS Act has the potential to push the Pi Network's price to new highs beyond $1. The passage of this legislation could provide a regulatory framework that fosters growth and stability for the Pi Network, attracting more investors and driving up its price. However, the actual impact of the GENIUS Act on the Pi Network's price will depend on various factors, and investors should approach this opportunity with caution.

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