Disclaimer: The opinions expressed in this piece are exclusively those of the author and do not reflect the views of the editorial team.
The recently proposed stablecoin legislation in the United States, referred to as the “Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act,” represents a significant step toward protecting blockchain innovation domestically. Introduced by Senator Bill Hagerty (R-Tenn.), this legislation showcases a moment of rare bipartisan agreement aimed at formulating a clear regulatory framework specifically for the digital assets sector. This includes establishing guidelines related to licensing, oversight, transparency, reserve requirements, consumer protection, and anti-money laundering/know your customer (AML/KYC) protocols.
Although the GENIUS Act has successfully passed the Senate Banking Committee with an 18-6 vote, it still needs to be signed into law. If enacted, this bill could position the United States ahead of other jurisdictions, particularly the European Markets in Crypto-Assets Regulation, which have historically led in creating clear regulatory structures for cryptocurrency.
Nevertheless, it’s premature to assume that immediately following the bill’s passage, crypto exchanges, financial institutions, and major corporations like Amazon, X, and Meta will suddenly boost their involvement in the stablecoin market. Success for these entities is heavily dependent on access to instant price feeds, a resource that is not universally available at this time.
Aspects of the GENIUS Act That Are Being Overlooked
Real-time, precise market data is what fuels the world’s leading exchanges and financial organizations. It’s important to remember that when high-frequency trading emerged in the early 2000s, speed was paramount, and many traders from that era can recount significant losses due to others gaining a millisecond advantage in arbitrage opportunities.
Experts suggest that the current regulatory fragmentation results in substantial losses for financial institutions, potentially reaching 5-10% of their annual revenues. Furthermore, while the overall spending on market data saw an increase of 8.1% in 2024 alone, studies indicate that the escalating costs of market data are quickly surpassing consumer budgets, creating an unsustainable situation. Last year, we observed unprecedented spending on market data due to an increased utilization of trading terminals. It’s clear that access to accurate, real-time market data is progressively becoming exclusive to a select few who can afford it.
This issue doesn’t merely prevent individual traders from obtaining necessary resources—some firms spend up to 12 times more than their competitors for identical data. Basic alternatives like Yahoo! Finance and Google Finance simply won’t suffice, as they only provide outdated information that is of limited use to traders needing to react to market changes in real-time.
Should the GENIUS Act be enacted, the US will gain the essential regulatory framework concerning stablecoins to encourage firms and companies to engage more actively. However, the crucial element missing for these entities to successfully implement stablecoin payment systems and investments is universal access to real-time pricing information.
DeFi’s Role in Transforming the Market Data Landscape
DeFi offers a solution to the challenge of accessible, affordable real-time pricing data through innovative concepts like decentralized price layers. These price layers, unlike anything in traditional finance, compile real-time, high-quality data straight from primary sources, making over a thousand symbols available to everyone, anytime. This approach breaks the hold that monopolistic pricing data firms have and guarantees open, transparent access for all market participants.
With next-generation infrastructure, decentralized price layers collaborate with traditional institutions to garner the most current and accurate data directly from the source. As this information is recorded on-chain, it becomes accessible without the high costs linked to subscriptions for services like Bloomberg Terminal.
Moreover, DeFi protocols employ smart contracts to execute transactions. This process automates liquidity provision, trade matching, and order fulfillment, minimizing costs and reducing chances for errors while offering unparalleled speed and efficiency. Traditional finance often involves intermediaries, while DeFi opens access to everyone with an internet connection and enables settlement that approaches instantaneity by using on-chain solutions to transfer assets and funds within seconds. This process mitigates counterparty risks and ensures that capital remains readily available—something rarely found in traditional finance, where delays are commonplace.
The Future of Finance: More Than Just DeFi Versus TradFi
As regulatory clarity on stablecoin payments looms, universal access to real-time pricing data will drive companies and firms toward adopting stablecoin payments and making investments—an essential component for their sustainability and growth.
Making pricing data publicly accessible is the next milestone for financial efficiency. When this information is available to all, market participants can compete based on execution and liquidity instead of just privileged access. Additionally, when execution venues are decentralized, liquidity increases, leading to tighter spreads and enhanced capital efficiency. Transparent and speedy settlement reduces counterparty risks, promoting wider market participation.
However, this effort is about more than simply increasing DeFi’s offerings to a broader audience. Democratizing real-time, accurate market data will enhance the financial industry overall, establishing a new paradigm where institutions and individuals can compete on equal footing. While the GENIUS Act is a key legislative initiative aimed at highlighting decentralized assets like stablecoins, we must also recognize the need for foundational infrastructure—such as affordable and accessible pricing feeds—to usher in a new financial era where the strengths of both DeFi and traditional finance converge to create an open, transparent, and rapid system for everyone.