According to Coin World News, the (Genius Act) passed by the U.S. Senate is drawing attention from the financial and legal sectors. The bill grants stablecoin holders priority claims to their supporting assets in bankruptcy situations, which is believed to potentially have adverse effects on traditional bank customers.
Georgetown University Law Professor Adam Levitin points out that such arrangements essentially subsidize the issuance of stablecoins at the expense of bank deposits, which could undermine the rights of ordinary depositors, especially in the event of bankruptcy of the stablecoin issuer or its custodian bank.
The current draft of the bill requires stablecoins to be backed by high liquidity assets (such as U.S. Treasury bonds), with issuers required to disclose reserves monthly and have the ability to freeze tokens. If passed, banks and other institutions will be able to issue compliant stablecoins.
Although the bill aims to boost user confidence and strengthen the connection between stablecoins and the real financial system, its bankruptcy priority arrangements have sparked discussions about regulatory logic and financial stability. Some analyses suggest that this bill could become a key turning point in the development of stablecoins while exacerbating structural shocks to the traditional financial system.