Trump’s GENIUS Act Won’t Knock UAE Off Crypto Throne

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

Unfortunately for Trump, no matter what his administration does, I’m afraid these efforts will be in vain. For me, the UAE will always be the real homeland of crypto.

The act, which Trump signed in July, is just more crypto-positive legislation from the States and a critical part of his administration’s mission to push the US up the DeFi podium.

TRUMP: 🇺🇸 "The Golden Age of America is upon us, with today's signing."President Trumps signs the Genius Act signaling the first of Stablecoin legislation. pic.twitter.com/JD2TtV0p9b

Stablecoin Regulations in the US

It lays out a clear regulatory framework for stablecoins in the US, further establishing them within the US's regulated capital market, and holding stablecoin issuers – like Circle and Tether, among others – to stronger anti-money laundering compliance. In fact, the move has already bolstered consumer and company confidence in digital assets and is even inspiring Wall Street giants to launch their own stablecoins.

With the world's biggest banks getting on board with cryptocurrencies, I can see why Trump might think his act gives the US an edge as the global crypto superpower. Unfortunately for him, this “giant” leap for crypto is just one of many small steps the UAE took years ago.

In fact, the UAE has been actively encouraging crypto entrepreneurs to set up shop on its shores for years. For a start, its forward-thinking government has established crystal-clear regulatory frameworks for crypto, pioneering how governments should regulate crypto globally.

Dubai's Virtual Asset Regulatory Authority (VARA) is exploring ways to ease the regulatory cost burden for smaller crypto firms.During Paris Blockchain Week, VARA CEO Matthew White discussed potential solutions, including a model where larger entities support smaller ones.

The Central Bank of the UAE (CBUAE) and Dubai's Virtual Assets Regulatory Authority (VARA) – the world’s first virtual asset regulator – provide comprehensive oversight and checks and balances on digital assets, promoting transparency, consumer security, and fostering innovation in DeFi. In the UAE, crypto isn’t the Wild West – it’s a real, legitimate asset class.

Dubai Sets the Standard

The simple fact is the UAE has been much quicker out of the blocks on regulation, and it’s reaping the rewards. VARA was established in 2022, and Abu Dhabi’s FSRA implemented its first crypto assets regulatory framework in 2018 – that's a seven-year head start on the US's GENIUS Act. Does the current US government really expect to stage a crypto coup this late in the day?

Moreover, the UAE imposes zero tax on crypto income or capital gains, making it incredibly hard to compete with – especially for the higher tax jurisdictions of the EU and US. Here’s the bottom line: the country is allowing crypto investors and entrepreneurs to thrive, not just survive. It actively encourages crypto investment and trading.

UAE Introduces Retroactive VAT Exemptions for Crypto Transactions https://t.co/aaNPfOJFyO

Going further still, the UAE has also fully integrated digital assets into its national infrastructure. By 2026, we'll see the UAE’s central bank digital currency, the Digital Dirham, supported by all financial institutions registered in the UAE.

And on a more consumer note, in Dubai, you’re even able to buy a home using bitcoin – supported by CBUAE and VARA. With these latest innovations, the UAE is going beyond accepting crypto – and promoting investment activity in the space – to making it a pillar of their economic landscape.

A Destination for Crypto Issuers

Looking at the whole picture, it’s no wonder that the country is the clear first-choice destination for crypto issuers and exchanges. And where the big crypto players go, innovations follow.

OKX, the world’s second-largest crypto exchange, has launched regulated crypto derivatives for retail investors in the region, and beyond that, there are a staggering 500-plus crypto startups operating there domestically.

These organisations and their people have been lured to the UAE by its appetite, infrastructure, and proactive regulation – and who can blame them? In my opinion, the US’s GENIUS Act simply doesn't offer any competitive edge that will usurp its throne...

At the end of the day, the UAE has embraced digital assets in a way that no other global market has, making itself unchallengeable as the crypto motherland.

Bitcoin Ownership Rate

Of course, I can't say I'm surprised: they have the highest Bitcoin ownership rate globally at 27.2%, which is a staggering level of appetite. Considering all the factors above, it's no wonder the crypto world has embraced the UAE in return.

Ultimately, the UAE is lightyears ahead of other countries in its approach to DeFi in every way. No regulatory shift in other markets is going to bridge the gap and displace it as the world leader, and that includes the US. The UAE will always be the kingpin, and its crypto crown isn’t up for grabs.