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The genius act of Trump is in the hot chair of Global Crypto News, and everyone has an opinion about what it could mean for us Defi. For me, at least, although it is certainly a good step forward, the move of Trump will simply not be enough to fall from the crypto throne. Regardless of this new legislation, the VAE will forever be the heavyweight champion of the industry.
Summary
- Genius Act provides stablecoin support, AML-Compliance and consumer protection, but will not come into effect until mid-2026 and leaves most digital assets untouched.
- Years ago, VAE set the pace, with FSRA (2018) and VARA (2022), Plus tailor -made licenses, guardianship rules and fraud prevention, the VAE built an adult crypto framework while the US was left behind.
- The digital dirham and zero load regime of the VAE make it a magnet for investors, while the US burdens CBDCs and with high taxes.
- Innovation follows capital – with 500+ Crypto startups, record FDI and OKX who opt for retailerivatives, the VAE has cemented itself as the Crypto Hub of the world – far for the US
Don’t get me wrong now, the genius action is certainly a positive, proactive piece of crypto policy of the US government. It will ensure that Stablecoins are linked one-for-one by their respective assets, handle-and-pennents-such as Tether (USDT)-as financial institutions under the Bank Secrecy Act and offer stronger consumer protection by keeping emptors on a higher standard of anti-money-shaved compliance.
It’s just not enough
The legislation, which was signed last month, only focuses on Stablecoins – no digital assets as a whole. Moreover, it will only come into force in the middle of the 2026, because supervisors still need time to make the necessary rules for implementation. Even with that is the fact that the country will still be far away from the “Crypto capital of the world” that President Trump promised.
Realistically, if the US ever had some hope to take the crown of the VAE, it had to be out of the blocks faster. Genius is too little, too late, and there are a few reasons why.
To begin with, the VAE already started to refine its crypto regulation in 2018, with the establishment of Abu Dhabi’s Financial Services Regulatory Authority (FSRA). Dubai then founded the Virtual Assets Regulatory Authority (VARA) in 2022. All in all, the region offers an adult regulatory infrastructure that offers tailor -made licenses, trade, custody overview and fraud prevention for Crypto. The Genius Act is perhaps the first historical crypto regulation of the United States, but to be honest it is seven years late to compete.
Then there is the fact that the central bank launches its own CBDC – the digital dirham – that will be supported by all the financial institutions that are registered in the VAE, as early as 2026. For me, the jury is on the effectiveness of CBDCs, but the VAE goes beyond the acceptance of digital currency to make it a pillar of his economy.
The US, on the other hand, has gone in the entire opposite direction – Trump has signed an executive order that prevents federal agencies from publishing or endorse digital currencies of Central Bank. It is therefore not only a feeling that the US lagging light years is the fact that the US has actively positioned itself against some developments in the decentralized financial space.
Of course there is also one – and perhaps more obvious – nail in the box for the Crypto ambitions of the US. Tax.
The VAE imposes zero tax on income and capital profits made from crypto, which is at least an attractive stimulus. In comparison with jurisdictions with high taxes such as the EU and the US, it is an obvious top choice for investment activity. Simply put, instead of turning away from crypto activity and investments, the country actively encourages it.
In the light of the above, it is clear why the VAE has become the perfect incubator for defi -innovation. And where investments go, innovation follows.
OKX, the world’s second largest cryptocurrency exchange, is underway with the launch of regulated crypto-derivatives for retail investors in the region, where access previously wakes for professionals. OKX’s choice for the VAE, since his launch path only strengthens the position of the country as a superior cryptomarket. OKX and his people are attracted by the VAE by his adult infrastructure, clear regulatory environment and consistent innovation.
Of course the VAE is well encouraged to enable the title as Crypttos’s first-choice market. The country is the home base of an astronomical 516 crypto startups and more than 1,000 blockchain -technical startups. Moreover, the foreign direct investment of the country at a record high after a record-breaking AED AED AED is 167.6 billion in capital inflow in 2024 value the world of the world is the worldone Biggest recipient of DBI. Given everything, I cannot imagine that the conveyor belt of the VAE of crypto-positive regulations will soon be delayed.
If the US still strives to become the world’s prominent crypto-supply power, it must fight against tooth and nail. But as things stand out, their newest legislation is not timely or powerful enough to get them over the line.
Perhaps BDI is the reason why the VAE government has thrown its full support behind Defi preliminary output, or perhaps it is that the VAE already has the highest Bitcoin (BTC) ownership rate worldwide. Anyway, with its regulatory, innovation and tax benefits, the country has been pulled far ahead – and I don’t see any other international market that bridges the gap soon.
#brilliant #act #late #crypto