The veteran DeFi protocol Bancor recently filed a patent infringement lawsuit against DEX leader Uniswap, alleging unauthorized use of the Automated Market Maker (AMM) technology that Bancor patented in 2017, sparking community discussion and uproar. Facing Bancor's strong claims, Uniswap countered that the lawsuit is "completely groundless".
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ToggleBancor Sues Uniswap: Unauthorized Use of Core AMM Technology
The Block reported that the lawsuit was jointly filed by the non-profit Bprotocol Foundation and developer LocalCoin Ltd., submitted to the U.S. District Court for the Southern District of New York on May 20.
[The rest of the translation follows the same professional and accurate approach, maintaining the specified terminology and preserving the original structure.]Toggle《GENIUS Act》Core Concept: Limiting "Payment Stablecoin" to Regulatory Scope
The United States is finally going to have a stablecoin bill, and for various types of stablecoins, everyone is both anticipating and afraid of being harmed. First, it's important to understand that the GENIUS Act only regulates "Payment Stablecoins".
The bill clearly defines "Payment Stablecoin" as:
A digital asset guaranteed by the issuer to be redeemed at a fixed amount of fiat currency, with a promise to maintain a stable exchange rate.
And excludes the following types of assets:
Fiat currency itself (such as the US dollar)
Bank deposits (even if recorded on the blockchain)
Securities assets in traditional finance
Decentralized stablecoins and algorithmic stablecoins (such as Dai, Frax)
Therefore, it can be understood that deposit tokens, RWA, decentralized stablecoins, and algorithmic stablecoins are not within the scope of this bill's regulation.
《GENIUS Act》Who Can Issue Payment Stablecoins?
The bill stipulates that only the following three types of "Permitted Payment Stablecoin Issuers" can issue regulated stablecoins:
Banks or their subsidiaries (regulated by federal banking laws)
Federally licensed non-bank issuers (approved by OCC)
State-level compliant institution-licensed stablecoin issuers (those with assets not exceeding $10 billion can adopt state regulation)
All other unauthorized entities may not issue or sell payment stablecoins to US users (effective after a three-year buffer period).
Here, we can see that in addition to traditional financial institutions, large entities can apply to the OCC (Office of the Comptroller of the Currency), while medium and smaller entities can apply to state governments.
《GENIUS Act》Reserve Requirements: 1:1 Full Cash Reserve, No Further Pledging
Issuers must hold reserve assets equal to the issued quantity, including:
US cash and Federal Reserve account deposits
Demand deposits (FDIC insured)
Short-term US Treasury bills within 93 days
Government money market funds
Qualifying repurchase agreements or tokenized Treasury assets
And rehypothecation of reserves is prohibited, unless for specific liquidity needs or approved purposes.
《GENIUS Act》Reporting and Compliance Obligations: Public Transparency, Audit Acceptance
Each compliant issuer must fulfill the following obligations:
Monthly disclosure of reserve composition and stablecoin issuance volume
Accept audits by registered accountants
CEO and CFO must sign authenticity certification
Annual financial reports and related party transactions must be prepared and disclosed according to GAAP (if issuance scale exceeds $50 billion)
Comply with the Bank Secrecy Act (BSA) and anti-money laundering regulations
《GENIUS Act》Actively Regulated but Exceptions Retained
The bill specifically exempts the following situations from being bound by this law:
Peer-to-peer digital asset transfers (P2P)
Transferring stablecoins between domestic and foreign accounts of the same person
Self-hosted wallet operations (hardware / software wallet)
These exceptions preserved personal freedom and space for decentralized applications.
《GENIUS Act》State and Federal Dual-Track: State Regulators Can Establish Their Own System
State-compliant issuers with total assets not exceeding $10 billion can choose to continue under state regulation, but their regulatory system must be approved by the federal "Stablecoin Review Committee". If they exceed the $10 billion threshold in the future, they must either migrate to the federal system or stop further issuance.
《GENIUS Act》Guarantees Payment Stability, Separating DeFi and Payment Applications
The core goal of this act is to create a "compliant stablecoin infrastructure" for daily payments, retail finance, and business purposes, distinguishing it from decentralized protocols or algorithmic models. It does not intend to ban all stablecoins, but rather design a standard for "safely redeemable payment stablecoins" to prevent systemic risks like the Terra/UST collapse.
Dai and Frax Not Included in Regulation, but Exchange Listing Policies Will Be a Focus
Although decentralized stablecoins like Dai are not within the definition of this law and thus not restricted, if U.S. exchanges and payment providers in the future only accept "compliant payment stablecoins" for listing or integration, it may still indirectly impact such assets.
Risk Warning
Cryptocurrency investment carries high risk, and prices may fluctuate dramatically. You may lose all of your principal. Please carefully assess the risks.
