Will the U.S. stablecoin law bring new life to the stablecoin USTC?

The stablecoin regulations such as the "Guidance and Establishment of the National Stablecoin Innovation Act" passed by the U.S. Congress mainly target compliant, dollar-pegged payment stablecoins, imposing strict requirements on issuers, reserve assets, and more. For example, only three types of entities are allowed to issue payment stablecoins: subsidiaries of banks or credit unions, and non-bank financial institutions approved by federal regulators. Additionally, issuers must hold at least one dollar of compliant reserves for every one dollar of stablecoin issued, and compliant reserves are limited to U.S. dollar cash, bank insured deposits, short-term government bonds, etc. USTC, being an algorithmic stablecoin, exposed the systemic risks of algorithmic stablecoins during the collapse of TerraUSD in 2022, leading U.S. stablecoin regulations to exclude algorithmic stablecoins from the framework.

Moreover, although USTC's price performance has been poor, as of July 18, 2025, its price is $0.01398, with a market capitalization of $78.41 million and a 24H volatility of 3.9%. Its market performance and inherent characteristics do not currently align with the types of stablecoins supported and regulated by U.S. stablecoin laws. However, as an algorithmic stablecoin, USTC is continuously improving and refining, which may ultimately allow it to peg to the U.S. dollar and benefit from U.S. stablecoin laws in the end.