If the U.S. Stablecoin Act 'GENIUS Act' passes successfully, its significance will be immense, and I even believe it could enter the top five in Crypto history.
Although abbreviated as GENIUS Act, literally translated as the Genius Act, it actually stands for Guiding and Establishing National Innovation for U.S. Stablecoins.
The proposal is lengthy, and here are a few key points summarized:
- Mandatory 1:1 Full Asset Backing: Scope includes cash, bank demand deposits, and short-term U.S. Treasury bonds. Simultaneously, reallocation and re-pledging are strictly prohibited.
- High-Frequency Information Disclosure: Release reserve reports at least monthly, introducing external audits.
- License Issuance: Once the stablecoin issuer's circulating market value > $10 billion, they must transfer to the federal regulatory system within a specified period, adopting bank-level regulation.
- Custodian Introduction: Custodians of stablecoins and their reserve assets must be regulated, qualified financial institutions.
- Clear Definition as Payment Medium: The bill explicitly defines stablecoins as a new payment medium, primarily constrained by the banking regulatory system, rather than securities or commodity regulatory systems.
- Recruiting Existing Stablecoins: An 18-month buffer period after the bill's implementation, aimed at encouraging existing stablecoin issuers (such as USDT, USDC) to quickly obtain licenses or become compliant.
After the main content, let me discuss the significance of this matter with excitement.
Over the past many years, when people asked what application the Crypto industry has developed in 16 years,
Now you can confidently tell others - Stablecoins.
[The rest of the translation follows the same pattern, maintaining the structure and translating the text into English while preserving the <> tags.]A person outside the circle began using stablecoins due to these promotions. Then one day, they discovered that since the wallet account was already set up, would understanding the Bitcoin inside be very difficult?
Stablecoins are like a massive Trojan horse. The moment you start using stablecoins, you unknowingly have already half-stepped into the Crypto world.
Fourth and Final
As a massive reservoir for digesting U.S. debt, although stablecoins cannot directly convert debt, they at least provide ammunition for the U.S. debt secondary market. These functions are quite important, and gradually, stablecoins have become a part of the U.S. debt market's body. Therefore, once the United States passes legislation, after tasting this sweetness, it is impossible to turn back and cancel it.
Moreover, we are confident that stablecoins are indeed one of the great innovations in our industry, and people who have used stablecoins will find it very difficult to return to the traditional cash - banking system.
The bill cannot go back, and users cannot go back. In the future, concerns will be cleared, standards will be mastered, and the era of large capital inflows seems to be imminent.
