After AI triggers an industrial revolution, cryptocurrency has also welcomed its own 'ChatGPT Moment'—stablecoins have received explicit acceptance into the U.S. regulatory system for the first time. This not only relates to the mainstreaming of Web3 but will profoundly reshape the global financial landscape.

🌐 Bill Analysis: Stablecoins Gain First Federal Regulatory Framework

The U.S. (GENIUS Act) (Guiding and Enabling the Nation for Innovation with U.S. Stablecoins Act) establishes the first federal regulatory framework for payment-type stablecoins, expected to become one of the most influential pieces of legislation in crypto history. The market cap of stablecoins has exceeded $260 billion, and this bill aims to inject institutional trust and a compliance foundation into the market.

Key Provisions Include:

100% Asset-Backed: Stablecoins must be backed 1:1 by high-liquidity assets such as U.S. cash and government bonds. USDT's current composition of partially non-compliant assets (like gold and Bitcoin) does not meet this requirement.

Prohibition of Interest Payments: Stablecoins cannot pay interest to holders, ensuring they only serve as 'digital cash' and avoid becoming 'bank-like deposits'.

Bankruptcy Protection Mechanism: If the issuer goes bankrupt, reserve assets will be prioritized for repayment to holders.

Anti-Money Laundering and KYC Compliance: Identity verification and risk control processes must be executed under the Bank Secrecy Act.

Regulatory Framework: The Treasury is the main regulatory body, while some states regulate small issuers (at $10 billion).

Open Issuance Eligibility: Banks, fintech companies, and retailers can issue stablecoins, but social media and e-commerce platforms (such as Meta and Amazon) are excluded.

The bill has a clear goal: to bind the credit of the dollar to the public blockchain network while establishing solid regulatory guardrails.

🔍 USDC vs. USDT: Who Will Dominate the U.S. Market?

On the surface, the GENIUS Act seems more favorable to USDC. Circle's reserve assets meet regulatory requirements, while USDT's partially non-compliant assets (like gold and Bitcoin) do not. However, Tether may continue to operate legally through the Treasury's 'equivalent compliance testing', especially given its leading position in emerging markets.

The real competition may not be between USDC and USDT, but rather who can integrate stablecoins into mainstream financial products the fastest in the future. Paypal has taken the lead, with Stripe, Square, Robinhood, and others as potential competitors.

🌎 Emerging Markets: Tether's Moat

In high-inflation countries like Argentina and Turkey, stablecoins do not need to pay interest—they are themselves 'value anchors'. I witnessed firsthand in Buenos Aires last year: many residents convert their salaries into USDT as soon as they receive them. Tether has become the digital dollar standard in these markets.

🏦 The Embarrassing Situation of Banks

The GENIUS Act poses a systemic threat to traditional banks. Banks lack innovation incentives and struggle to accept the reality that 'interest income belongs to the issuer'—stablecoins will cut off their core profit model.

In the future, if banks do not transform into service providers on the crypto track, they will gradually be marginalized like the postal system was disrupted by email.

💳 Visa/Mastercard Are Being Bypassed

Stablecoin transactions can achieve almost zero fees and real-time settlement, making the 200-300 bps cost and multi-day settlement speed of traditional card payments seem extremely inefficient.

Stablecoins can be directly used for e-commerce, payroll, remittances, and subscription services. For Visa and Mastercard, this is a survival battle—they are trying to transform into compliant and settlement service platforms supporting stablecoins, launching USDC or PYUSD-supported 'stablecoin credit cards' is just the first step.

💵 Dollar Dominance: Tether Becomes an Invisible Buyer of Government Bonds

By 2024, Tether has become the fifth-largest buyer of U.S. government bonds. If it were a country, its bond holdings would rank 18th globally. The GENIUS Act will further propel this trend.

Through stablecoins, the U.S. shifts government bond investors from sovereign states to global individual users, significantly expanding the global network effect of the dollar. The current government is also pleased with this, as Tether becomes an important tool for U.S. financial globalization.

📈 Investing in the Stablecoin Ecosystem: Betting on Infrastructure Rather Than Issuers

Most stablecoins operate on Ethereum (including L2), with Solana second. The most direct investment method is:

ETH / SOL: As native assets for stablecoin infrastructure, they are the most robust long-term choice.

COIN / HOOD: Stablecoin business expected to bring new growth, but valuations are already high.

Ethena / Sky (MakerDAO): High-risk, high-reward choices under regulatory arbitrage and derivative mechanisms.

Conclusion: The Crypto Version of the 'Payment War' Has Begun

The institutional establishment of stablecoins not only recognizes decentralized finance but also represents the U.S. choice to make the dollar the anchor point of global crypto finance. Fintech companies will play an increasingly important role in the global liquidity network, while banks and payment giants must accelerate their evolution.

This is the 'ChatGPT Moment' for cryptocurrency: not a carnival of speculative hype, but the prologue to a new financial order.