Today, I want to discuss two things: one is that the U.S. genius stablecoin bill was passed on July 18, and the other is that AnchorX issued an offshore RMB stablecoin (AxCNH), both related to stablecoins. What impact will this have on the future and some thoughts!
I. Stablecoin Bill
On July 18, 2025, U.S. President Donald Trump signed a federal bill named the GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins Act), which is the first comprehensive regulatory bill on stablecoins in the U.S. This means that compliance in the cryptocurrency space has made significant progress!
Main Content of the Bill
1. Definitions and Compliance Requirements
- Clearly define 'payment stablecoins' as digital assets that can be exchanged for fiat currency or equivalent reserves and are not securities.
- Specify that only institutions that qualify as 'Permitted Payment Stablecoin Issuers' (PPSI) can issue such stablecoins in the U.S. The ban will be enforced 18 months after the bill takes effect or about 120 days after regulatory rules are released.
PPSI includes: bank subsidiaries, federally qualified non-bank institutions, or state-level institutions with total assets below 10 billion USD.
2. Reserves and Transparency
- Issued stablecoins must maintain a 1:1 reserve support, which can include low-risk assets such as USD, short-term government bonds, related repurchase agreements, and money market funds.
- Require monthly public reserve details, annual audits, prohibit excessive leverage, and reserve flash swaps.
3. Regulatory System
- Establish a dual regulatory system of federal and state levels. Compliant issuers are subject to state or federal regulation and must also comply with anti-money laundering (AML/BSA) and sanctions regulations.
- Introduce mandatory 'freeze/destroy' technical capabilities to regulate and intercept illegal activities.
- Non-compliant stablecoins will be banned from trading or clearing in the United States after a three-year grace period.
- Specify that in bankruptcy liquidation, holders of the coins have priority over reserve assets.
5. Overseas Stablecoins
- Foreign issuers entering the U.S. market must meet regulatory standards equivalent to those of the U.S. The Treasury will issue 'compatibility' assessment rules within a year.
Significance of the Bill
1. Clear Regulation, End of the Blank
Previously, the U.S. lacked a nationwide unified regulatory framework for stablecoins. The GENIUS Act fills the long-standing regulatory vacuum and sets national standards. It also sets an example for other countries; after all, the U.S. is the world's largest economy, and with the U.S. doing this, other countries will surely follow suit, especially as our country is also beginning to explore this, so the cryptocurrency space is gradually being regulated, and for the market to truly explode in scale, regulation is essential!
2. Mandatory reserve disclosure and audit systems effectively reduce reserve risks and potential 'run' problems, protecting user wealth. For example, Tether had no audits before, but now it must audit, which is a protection of user rights, reducing Tether's explosion risk.
3. U.S. dollar stablecoins help solidify the dollar's position, compensate for the shortcomings of the existing SWIFT system, and provide incremental space for the dollar M2 and U.S. Treasury bonds.
So this is highly beneficial for the U.S. financial system; thus, this is not Trump's decision but a decision of the times!
II. AxCNH (AnchorX Offshore RMB Stablecoin)
In early July, after signing a strategic cooperation memorandum with Hong Kong listed company (Goldstream Investment, Hong Kong: 01328.HK), AnchorX will issue a 1:1 pegged offshore RMB (OFF-shore CNH) stablecoin - AxCNH. AxCNH will be used to facilitate trade between Chinese enterprises and countries along the 'Belt and Road' (such as Kazakhstan, Central Asia, Southeast Asia), reducing exchange rate risks and improving capital flow efficiency.
AnchorX obtained the principled license for the issuance of 'CNH Pegged Stablecoin' from the Astana Financial Services Authority (AFSA) in Kazakhstan on February 2025. AxCNH will be supported by this license and will initially be deployed on the Conflux public chain.
Conflux Tree Graph public chain is also collaborating with AnchorX, Dongxin Pinghe, and others to promote AxCNH in Central Asia, Southeast Asia, and other 'Belt and Road' countries as a pilot.
In fact, in March 2024, AnchorX announced its cooperation with Conflux (and custodian OKLink Trust) to officially launch the AxHKD project (Hong Kong stablecoin) and enter the beta testing phase of Conflux. However, it currently has not obtained a regulatory license and is only testing in a sandbox (expected to obtain the Hong Kong license in the second half of 2025), while this time it has indeed obtained the AFSA's license.
Moreover, on July 20, the Conflux Tree Graph blockchain released version 3.0 and announced the exploration route for empowering web3 offshore RMB, so Conflux surged yesterday, with an increase of over 120%.
III. Summary
Based on the above two pieces of information, firstly, stablecoins are compliant; the world's largest economy has already set an example. As for the second and third places, you can figure it out yourself. I believe they won't fall behind.
Secondly, since the offshore RMB has been piloted, how far can non-offshore ones be? And the Hong Kong dollar is already in progress; one must understand that trends are things that no one or organization can stop!
It's like when the steam car came out back in the day, it was faster and more dangerous than horse-drawn carriages, often causing accidents and killing people, and it harmed the interests of many carriage companies. At that time, laws were enacted; was it useful? The development of the times does not shift according to anyone's will; you can only follow the trend, not go against it.
Thirdly, even though Conflux has risen by 100%, AxCNH is the first currency of the RMB. Currently, CFX has a market value of 1 billion USD, and issuing stablecoins of 10 billion is not excessive, so don't think that a 100% increase is very high; widespread recognition needs to be enhanced. I've mentioned CFX multiple times in the hundred-fold and 'Good Good Good' series.
#GENIUS稳定币法案
