The original author of this article is Spinach, shared with permission, with slight modifications from the original text:

Today, a significant event in the crypto world has everyone's attention, as the stablecoin (GENIUS bill) has passed the motion vote.

This bill originally had no controversy between the two parties, mainly encompassing these three points:

  • Ensure stablecoins are backed by a 1:1 reserve and enhance transparency.

  • Implement anti-money laundering (AML) and consumer protection measures.

  • Consolidate the United States' leadership position in global digital finance.


Previously, the Democrats obstructed it, saying they wouldn't allow the President to issue coins.

This time, a compromise was also made; the bill prohibits members of Congress and senior executive officials from issuing payment stablecoins while in office. However, the President and Vice President are not included in this ban.

So the Trump family's stablecoin $USD1 business can still continue~

Next, let me explain in detail the importance of the stablecoin bill:

1. First, stablecoins are the strongest surplus in crypto

First of all, stablecoins themselves are the most successful application, and also an RWA application!

USDC, USDT, etc. are products that tokenize the dollar as a 'real-world asset'. We know that the core of RWA lies in compliance, so the stablecoin bill essentially clarifies the legal status of stablecoins, the most basic type of RWA, laying the legal foundation for the entire RWA sector.

Other assets such as stocks/bonds, as long as they meet the requirements of 1:1 reserve support and anti-money laundering, should also subsequently pass~

2. Compliance channels opened

The bill establishes a clear registration and regulatory mechanism, which means:

- Traditional financial institutions can compliantly tokenize assets

- A clear legal bridge between the on-chain and off-chain worlds - Large institutions can enter with confidence, bringing more quality assets

- Web2 users can fully comply with the exchange of fiat currency for stablecoins

3. Liquidity enhancement

Stablecoins are the lifeblood of on-chain liquidity.

Currently, with over 200 billion in stablecoin scale, it supports a 3 trillion dollar cryptocurrency market value.

Previously, US Treasury Secretary Basent expected that the issuance scale of compliant stablecoins would reach 2 trillion USD in a few years, providing rich liquidity for the crypto market.

4. Trust mechanism established

The stablecoin bill requires strict reserve management and auditing, and this transparent mechanism can be applied in other scenarios, enhancing the trust of the entire crypto industry, especially in the RWA market, addressing the issue of traditional financial institutions' lack of trust in blockchain assets.

However, this bill has not been formally passed yet; the official Senate vote will take place on May 22nd. Interested parties can keep an eye on this date.