In her MTNewswires article, “Fintechs Enter New Regulatory Era After Passing Of GENIUS Act,” Reporter Linda Rosencrance discussed the impact of this new direction with CM Law Securities Regulation & Litigation Partner Mike Piazza. She notes that Washington turned up the heat on fintech firms in July with the signing into law of the Guiding and Establishing National Innovation for US Stablecoins Act, more often referred to by its acronym, the Genius Act.
With new stablecoin standards, broader Securities and Exchange Commission oversight of tokenized products, and uncertainty around open banking, financial services firms offering digital currencies may now need to rethink how they operate. Compliance is getting tougher, and scaling up is becoming more complicated in this new era of federal scrutiny.
Mike Piazza, a partner at CM Law and a former regional trial counsel for the SEC, sees all of this as a big step in the right direction. In his view, the new regulatory approach offers a much more positive outlook for fintech unicorns working with tokenized finance as it clears up a lot of the legal gray areas and gives these companies more freedom to innovate.
“Quite clearly, gone are the days of the Gary Gensler-led SEC seemingly taking every opportunity to crush innovation in the crypto and DeFi space,” Piazza said. “While these are early days in this new era, the tide has certainly shifted in Washington, D.C. What remains to be seen is what positive actions will be taken by the SEC and other regulators to continue this positive momentum.”
Read the full article here
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