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

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

The GENIUS Act requires that all U.S. dollar stablecoins must be backed 1:1 with reserves, limited to cash or short-term U.S. Treasury bonds. Monthly disclosure of reserve audit results is mandatory, 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'.

I personally believe this is a struggle for monetary sovereignty. The U.S. does not want stablecoins to go out of control, nor does it want to be surpassed by other CBDCs. Therefore, it chooses to establish rules directly, first 'incorporating' stablecoins, and then promoting them globally.

The real impact of this legislation extends beyond the blockchain:

1️⃣ Increase the transparency of stablecoins and rebuild market trust.

2️⃣ Provide a compliance pathway for traditional financial institutions.

3️⃣ Projects will face higher compliance thresholds, leading to reduced innovation.

In a sense, this is a reshuffling. Stablecoins will resemble real-world 🏦 products more closely and will no longer just serve as a 'medium of exchange' in crypto, but may become a key bridge between the real world and the blockchain world.