Recently, the United States passed the Stablecoin Act (GENIUS Act), which brings significant regulatory framework to the cryptocurrency industry. It clarifies the legal status of stablecoins, defining them as payment tools rather than securities, thereby limiting the possibility for the SEC and federal banking agencies to classify them as securities products. This promotes the widespread use of stablecoins in the financial system.
ENA (Ethena), as an innovative project in the field of stablecoins, aligns with the passing of the U.S. Stablecoin Act in several ways, and its products USDe and USDtb are expected to gain significant development opportunities in this new regulatory environment.
Filling the compliance stablecoin yield gap, USDe becomes a potential beneficiary
After the passing of the Stablecoin Act, the market is expected to experience massive growth, but traditional compliant stablecoins (such as USDT, USDC) typically reserve low-risk assets (like bank deposits or short-term government bonds) and cannot directly provide yields to holders. In contrast, ENA's USDe generates yields through Ethereum staking and derivatives markets, providing users with a stable source of passive income. The current price of Ethena Staked USDe (sUSDe) is $1.17, with a 24-hour trading volume of $11.4 million, indicating market interest. USDe utilizes the "Internet Bond" mechanism, achieving yields through Ethereum staking and hedging strategies, filling the gap left by compliant stablecoins that cannot generate income. With the act's promotion, the demand for stablecoins in the market will further increase, and the yield attribute of USDe makes it likely to attract more users seeking stable income, positioning it as a potential beneficiary in this wave of growth.
Decentralization and compliance running in parallel, ENA's dual advantages
The Stablecoin Act emphasizes the importance of cybersecurity and decentralized mechanisms, requiring issuers to take measures to protect user assets from hacker attacks. ENA's USDe operates on Ethereum, utilizing ZK-Rollup and decentralized oracle networks to ensure transaction efficiency and data transparency. This decentralized architecture aligns highly with the act's requirements for security and transparency. At the same time, ENA demonstrates its capability in the compliance sector through USDtb. The parallel development of USDe and USDtb enables ENA to find a balance between decentralized finance (DeFi) and traditional finance (TradFi), allowing it to carve out a niche in the market growth driven by the act.
The passing of the U.S. Stablecoin Act (GENIUS Act) brings a clear regulatory framework and growth opportunities to the stablecoin market, and ENA, with the yield characteristics of USDe and the compliance advantages of USDtb, aligns closely with the regulatory trends of the act. USDe fills the gap of compliant stablecoins that cannot generate income, while USDtb meets the act's requirements for transparency and security. ENA's dual approach enables it to find a balance between decentralization and compliance, positioning it as a significant beneficiary in the market growth propelled by the act.
