In July, the White House's pen fell, and the first federal cryptocurrency bill (the Stablecoin National Innovation Act) officially took effect. This five-year regulatory tug-of-war ended with the national incorporation.
The three knives of the bill
1 Reserve strangulation
Issuers must lock up US Treasury bonds 1:1, completely strangling Tether and other wild horses, the Treasury is authorized to conduct surprise audits at any time
2 Transparency execution
Monthly disclosure of reserve composition; commercial paper and junk bonds have nowhere to hide. The USDT reserve fraud case of 2023 may repeat
3 National machinery takeover
Compliant stablecoins are equivalent to an extension of the US dollar, with the Federal Reserve holding the ultimate power of life and death
Bloody winners take all
USDC becomes the biggest beneficiary, Circle executives hold secret meetings, Treasury records exposed
DAI faces a death spiral, over 68% of collateral needs to be swapped for treasury bonds
Exchange stablecoin trading volume surges 300%, Binance sees a net inflow of 900 million USDC in a single day
Old Li's survival guide
Immediately liquidate non-compliant stablecoins
Shift investment to US Treasury bonds to anchor assets (USDC/BUSD)
Go long on compliant exchange platform tokens (COIN stock price surged 23% before market opens)
Be wary of the SEC's crackdown on altcoins in September
Where the national machinery rolls over, it is both a graveyard and a gold mine. The compliance of BUSD in 2020 led to a 300% increase, but remember that Attachment 3.11 of the bill authorizes the freezing of suspicious assets. Retail investors need to quickly exit the gray area.
Not paying attention to me? You'll be queuing on the rooftop during the next crash.
