Xinhua News Agency comments on the U.S. 'Genius Act': The credibility of the dollar and international responsibilities will affect global acceptance; merely changing the form is not enough to consolidate the influence of the dollar and stablecoins.
Trump officially signed the 'Guidance and Establishment of the U.S. Stablecoin National Innovation Act' (referred to as the 'Genius Act') at the White House, marking the first establishment of a regulatory framework for stablecoins in the United States. Trump stated that stablecoins help increase demand for U.S. Treasury bonds, lower interest rates, and strengthen the dollar's status as a global reserve currency. He reiterated that 'a central bank digital currency will never be allowed to be established in the U.S.'
The 'Genius Act' requires that stablecoins be backed by liquid assets such as dollars or U.S. short-term Treasury bonds, and issuers must disclose reserve details monthly. Currently, the total market capitalization of the two largest stablecoins, USDT and USDC, accounts for nearly 90%. According to statistics, the market size of stablecoins is approximately $247 billion, and U.S. Treasury Secretary Yellen expects it to grow to $3.7 trillion by 2030.
Experts point out that the U.S. is strongly promoting stablecoins to leverage the existing advantages of the dollar and maintain its dominant position in the global currency and payment system. Some views suggest that this move could ease pressure on U.S. Treasury bonds. However, some Democratic lawmakers question that the bill fails to provide sufficient consumer and financial stability safeguards and point out the connection between the Trump family and cryptocurrencies.
Some Republican lawmakers also believe that the bill conflicts with Trump's previous executive order banning central bank digital currencies.
