The U.S. Senate has finally passed the Stablecoin Genius Act with a vote of 68 to 30.

Why is it so important? Because this act is not a ban, but an attempt at 'systemic regulation'.

The GENIUS Act requires that all U.S. dollar stablecoins must 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-staked. Once the market capitalization exceeds $10 billion, it must enter the federal regulatory system. Stablecoins are now treated as 'formal financial instruments'.

Personally, I believe this is a struggle for monetary dominance. 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 set rules directly, first 'incorporating' stablecoins and then pushing them globally.

The real impact of this act goes beyond the blockchain:

1️⃣ Increase the transparency of stablecoins and rebuild market trust.

2️⃣ Provide a compliance path for traditional financial institutions.

3️⃣ Projects face higher compliance barriers, leading to reduced innovation.

In a sense, this is a reshuffle. Stablecoins will resemble real-world banking 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.