$USDC

Why is it so important? Because this bill is not a ban, but an attempt at "systematic regulation."

The GENIUS Act requires all dollar stablecoins to have a 1:1 full reserve, with assets limited to cash or short-term U.S. Treasury bonds. Reserve audit results must be disclosed monthly, and users' funds are prohibited from being misappropriated or re-pledged. Once the market value exceeds $10 billion, it must enter the federal regulatory system. Stablecoins are now treated as "formal financial instruments."

Personally, I feel this is a struggle for monetary supremacy. The U.S. does not want stablecoins to go out of control, nor does it want to be outpaced by other CBDCs. Therefore, it chooses to establish rules directly, first "incorporating" stablecoins before pushing them globally.

The real impact of this bill goes beyond the blockchain:

1️⃣ Increase the transparency of stablecoins and rebuild market trust

2️⃣ Provide a compliant path for traditional financial institutions

3️⃣ Projects face higher compliance thresholds, reducing innovation

In a sense, this is a reshuffle. Stablecoins will resemble real-world bank products more and will no longer just be a "medium of exchange" in Crypto, but may become a key bridge between the real world and the blockchain world.

For example, in and out of funds. In the past, many users could only rely on OTC and grey channels. Now, if compliant stablecoins can directly connect to bank accounts, the thresholds for payment, cross-border transactions, and on-chain settlements will significantly decrease. This is the real key to pushing stablecoins into the mainstream.

Of course, not everyone supports such an approach. Some worry that excessive regulation will stifle innovation and turn Crypto into a mere appendage of the financial industry. Moreover, if only a few giants are licensed to issue compliant stablecoins, what is left of "decentralization"?

But in my view, this may be a compromise that must be made. There must always be a balance between regulation, user trust, institutional entry, and technological innovation.

What the GENIUS Act brings is neither a simple boon nor a direct downside, but the establishment of a new order.

#GENIUS Stablecoin Act #Stablecoin Legislation $USDC