Last night Beijing time, Federal Reserve Chairman Powell released a major statement announcing the formal launch of the stablecoin regulatory framework. The release of this news means that the U.S. regulation of cryptocurrencies, especially stablecoins, is entering a substantive advancement stage.
1. Why must stablecoins be 'regulated'?
Stablecoins were seen as a bridge connecting traditional finance and the crypto world, but in reality, they have already evolved into a large and ambiguous 'shadow banking' system.
Terra Collapse: In 2022, the algorithmic stablecoin Terra system evaporated over $40 billion overnight, triggering systemic panic in the market.
Opaque reserves: Some stablecoins, represented by USDT, claim to be pegged to the dollar at a 1:1 ratio, but their actual reserve composition is complex, and regulators have long questioned their audit compliance.
Cross-border gray areas: According to data, over 90% of stablecoin transactions occur outside the U.S., and the problem of regulatory arbitrage is becoming increasingly prominent.
In this context, the absence of regulation has become a source of systemic risk in the financial system, making the Federal Reserve's intervention inevitable.
2. New regulatory direction: layered management, closing off arbitrage.
According to the latest policy discussion direction, the U.S. will introduce a 'classification + audit' mechanism in the regulation of stablecoins:
Bank-led stablecoins: Such as JP Morgan's JPM Coin, will be directly regulated by the Federal Reserve and must meet compliance requirements for 100% dollar reserves, real-time auditing, and full KYC/AML coverage.
Non-bank projects: Stablecoins launched by startups and technology platforms will be regulated by the SEC and CFTC, with a focus on asset transparency and investor protection mechanisms.
Cross-border arbitrage paths: For example, shell projects registered in places like the Cayman Islands and Seychelles will have to disclose complete reserve structures and undergo compliance reviews to enter the U.S. market in the future.
Essentially, this system is designed to bridge regulatory gaps and eliminate gray arbitrage spaces.
3. Regulation is just the beginning; the bigger game is in the digital dollar.
It is worth noting that the Federal Reserve has not stopped at regulating stablecoins; its ultimate goal remains the promotion of 'Central Bank Digital Currency' (CBDC), namely the 'digital dollar.'
Powell clearly stated in his speech: 'Regulation of stablecoins will not hinder the technological advancement of the digital dollar.'
In other words, the current strategy of the U.S. government can be interpreted as:
Allow stablecoin experiments to innovate boundaries and guide market education;
Through regulation, clean up inferior projects and establish a credible asset system;
Ultimately promote the launch of the digital dollar, led by the government to dominate the global payment infrastructure.
Stablecoins are merely a transition; the real protagonists are state-backed, programmable digital fiat currencies.
Summary: The 'era of freedom' in the cryptocurrency world is ending, with policy games dominating the new situation.
The era of 'wild growth' in the stablecoin market is coming to an end.
After the implementation of regulation, projects relying on high leverage, opaque reserves, and evading audits will gradually exit the stage. Compliant stablecoins, primarily led by banks and licensed financial institutions, will become the new market pillars.
For ordinary investors, this regulatory storm is also an opportunity for 'asset repricing':
Removing the falsehoods: Avoid stablecoins that are unverified, non-compliant, and lack scenarios.
Focus on compliant products and concept stocks: such as JPM Coin, Circle (USDC) and the technology companies and cross-border payment platforms behind them;
Observe the trends of the digital dollar: it will profoundly impact the global financial structure and even change the realization of dollar hegemony.
Regulation is not the endpoint, but the starting point of a new round of global financial competition.
