The passage of the U.S. "Stablecoin Act" will have a profound impact on the cryptocurrency market:

1. Market Centralization and Compliance Pressure: The act stipulates that only federally or state-approved institutions can issue stablecoins. Traditional financial institutions (such as JPMorgan and Citigroup) may accelerate their entry, leading to market concentration around large compliant issuers (such as Circle), while existing giants like Tether face stricter reserve audit requirements, and small issuers and algorithmic stablecoins may be squeezed out or banned.

2. Demand for U.S. Treasury Bonds and Strengthening Dollar Hegemony: The act requires stablecoin reserves to be primarily in cash and short-term U.S. Treasury bonds, pushing stablecoins to become important buyers of U.S. debt. It is expected that by 2028, stablecoin holdings of U.S. Treasury bonds may surpass those of China, further consolidating the international position of the dollar, but it may also exacerbate the financial system's dependence on U.S. debt.

3. Innovation and Risk Coexist: Strict reserve and interest payment prohibitions (such as banning yield-bearing stablecoins) may stifle innovation in the DeFi space, but technology-driven compliance solutions (such as zero-knowledge proofs) may balance privacy and regulatory demands. At the same time, if banks issuing stablecoins encounter a crisis, it may trigger systemic risk, requiring government backing.

4. Political Maneuvering and Regulatory Controversy: The act has been criticized for potential conflicts of interest (such as projects involving the Trump family), which may undermine regulatory independence. Meanwhile, the Democratic Party is concerned about banks being overly leveraged, reminiscent of the financial crisis, highlighting the struggle between power and fairness in the regulatory framework.

Overall, the act provides a legitimacy framework for the industry, but it may come at the cost of diversity and innovation, pushing the crypto market further into the traditional financial system.