In the past, everyone's impression of stablecoins was honestly not very good. Many people felt that they were opaque and unregulated, and even mainstream stablecoins like USDT and USDC have always raised questions: Do they really have sufficient reserves? Who is responsible if something goes wrong?

But now, the United States has started to take action.

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

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

The GENIUS Act requires all USD stablecoins to have a 1:1 sufficient 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 that this is a struggle for currency dominance. The United States does not want stablecoins to spiral 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 act goes beyond the blockchain:

1️⃣ Increase the transparency of stablecoins and rebuild market trust.

2️⃣ Provide traditional financial institutions with a compliance pathway.

3️⃣ Projects face higher compliance thresholds, reducing 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" in Crypto but could become a key bridge between the real world and the blockchain world.

For example, for deposit and withdrawal. In the past, many users had to rely on OTC and gray channels; now, if compliant stablecoins can directly connect to bank accounts, the thresholds for payments, cross-border transactions, and on-chain settlements will significantly decrease. This is the key that can truly drive stablecoins into the mainstream.

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