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 legislation is not a ban, but rather an attempt at 'systematic 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 securities. Monthly disclosures of reserve audit results are mandatory, and users' funds are prohibited from being misappropriated or re-collateralized. Once the market cap 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 get out of control, nor does it want to be outpaced by other CBDCs. Therefore, it chooses to establish rules directly, first 'incorporating' stablecoins, and then pushing them globally.
The real impact of this legislation extends beyond the blockchain:
1️⃣ Increasing the transparency of stablecoins and rebuilding market trust.
2️⃣ Providing a compliance pathway for traditional financial institutions.
3️⃣ Projects face higher compliance thresholds, leading to reduced innovation.
In a sense, this is a reshuffle. Stablecoins will resemble real-world 🏦 products more closely, and will no longer just be a 'medium of exchange' within crypto, but may become a key bridge between the real world and the blockchain world.
