The passage of the GENIUS Act marks an important milestone in the regulation of cryptocurrencies in the United States, which will have a profound impact on the stablecoin market and the entire crypto industry. This act establishes a federal regulatory framework for dollar-pegged stablecoins, requiring issuers to hold highly liquid assets (such as U.S. Treasury bonds and FDIC-insured deposits) as reserves, and to conduct monthly audits and anti-money laundering compliance. This will enhance market transparency and consumer confidence, attracting more institutional capital into the stablecoin market, which is expected to reach a market size of $3.7 trillion by 2030.
For the crypto industry, the passage of the act will drive traditional financial institutions (such as banks and retail giants) to issue stablecoins or integrate them into their payment systems, promoting the application of blockchain technology in everyday transactions. However, critics such as Senator Elizabeth Warren point out that the act may privilege certain stablecoins and poses systemic risks, especially regarding the capacity issues in the Treasury bond market. Furthermore, the act may restrict the development of decentralized stablecoins, solidifying the control of traditional finance.
The role of stablecoins in future finance will become more central. They serve as a bridge between blockchain and traditional finance, not only for crypto transactions but also playing a key role in cross-border payments, instant settlements, and the digital economy. For example, giants like Amazon and Walmart have considered launching stablecoin-like payment products, indicating their potential to reshape the global payment landscape.
My trading style leans towards trend following, combining technical analysis and fundamental analysis, suitable for medium to long-term investments. I like to enter the market when the trend is clear, often using moving averages (MA) and the Relative Strength Index (RSI) to identify buy or sell points. For example, when the 50-day moving average crosses above the 200-day moving average to form a 'golden cross', I consider building a position. This strategy suits me because it reduces the interference of short-term volatility and aligns with my prudent risk preference.
I also pay attention to fundamentals, such as company earnings reports or macroeconomic events, to ensure that the trend is supported by fundamentals. This approach allowed me to profit during the 2023 Bitcoin bull market while avoiding the risks of blindly chasing highs. For me, discipline and patience are key to success, and trend following helps me stay calm in a dynamic market.