Progress of the bill: Stuck in the Senate, but moving fast.

  • Latest situation: On May 20, 2025, the US Senate voted 66 in favor and 32 against to pass the 'termination debate' vote on the (GENIUS Act). This means the bill can finally enter the formal discussion and amendment stage, after which it will be sent to the House of Representatives for a vote, and finally signed by the President to take effect.

  • Timeline: If both chambers pass it, the President may sign it by the end of May 2025, making it the first federal stablecoin law in the US.

Core of the bill: Stablecoins must be 'licensed', and funds must be transparent.

Who can issue stablecoins?

  • Large institutions take priority: Stablecoins with a market cap over $10 billion (like USDT, USDC) must be regulated by the Federal Reserve or the Office of the Comptroller of the Currency (similar to 'financial police'); smaller institutions (below $10 billion) can be regulated by state governments, but the standards must align with federal regulations.

  • Tech companies face restrictions: Want to issue coins? Unless they can prove they have strong risk control capabilities, it's not going to happen!

Where does the money come from? Must be transparent!

  • 1:1 reserve: For every $1 issued in stablecoins, $1 in cash or US Treasury bonds must be stored; user funds cannot be used for investment or staking.

  • Monthly disclosures: Issuers must publicly disclose reserve asset details and accept third-party audits to prevent 'misappropriation of funds' black box operations.

Prohibition on 'making big promises'

  • No interest payments: Stablecoins cannot provide interest to users like deposits do, to avoid competing with banks.

  • No leveraging government credit: Names and promotions cannot include words like 'America' or 'USG' to avoid misleading users into thinking there is government backing.

What impact does this have on ordinary people?

Safer, but fewer choices

  • Benefits: In the future, buying compliant stablecoins like USDC will not worry about the issuer suddenly running away or over-issuing, as the funds are audited daily.

  • Drawbacks: Stablecoins issued by smaller platforms may be eliminated, leaving only products from large institutions, resulting in fewer choices.

Tech giants issuing coins? Difficult!

  • For example, if Meta wants to launch its own stablecoin, it must go through stringent scrutiny, or it can only continue using existing products like USDC and USDT.

The Trump family's 'crypto business' becomes the focus.

  • Democrats question whether the Trump family is profiting through affiliated companies issuing coins, but the latest bill removed targeted provisions, turning into a 'one-size-fits-all' regulation to avoid political conflicts.

Controversy focus: Is the regulation too strict? Or not strict enough?

Supporters say:

  • Can prevent fraud! For example, USDT was previously questioned for insufficient reserves, but now it must be transparent, making users feel more secure.

  • Consolidate dollar hegemony! The global stablecoin market is worth $250 billion; after US regulation, the dollar's position in the blockchain world will be more stable.

Opponents say:

  • Harm to innovation: Banning algorithmic stablecoins (like UST) may stifle DeFi (decentralized finance) initiatives.

  • Loopholes still exist: The cross-border money laundering issue remains unresolved, for example, through the use of anonymous wallets to transfer illicit funds.

  • Political maneuvering: The bill may be used by Trump to benefit his own businesses, with regulation becoming 'rubber banded.'

What will the future look like?

  • Short term: Market volatility. Compliant stablecoins (like USDC) may appreciate, while non-compliant ones like USDT will be sold off.

  • Long term: The US dollar becomes more 'on-chain': In the future, cross-border remittances and online purchases may directly use compliant stablecoins, bypassing banks.

  • RWA (Real World Assets on the blockchain) explosion: Stocks and bonds can become collateral for stablecoins, attracting more institutional funds. Other countries may follow suit: The EU and Singapore may adjust their policies to see who can regulate more strictly or more leniently compared to the US.

(GENIUS Act) sets rules for stablecoins: Issuers must have licenses, funds must be transparent, and users cannot be misled. In the short term, this may 'shuffle' the market, but in the long run, it can stabilize the crypto market and help position the US dollar in the digital world. However, whether it can balance innovation and risk depends on subsequent execution.

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