(GENIUS Act)'s passage marks an important milestone in the history of cryptocurrency regulation in the U.S. If it becomes law, its impact will profoundly reshape the landscape of the crypto industry while laying the groundwork for the role of stablecoins in the future financial system.
One, the core impact of the (GENIUS Act)
1. Regulatory framework clarified for the first time
The bill defines stablecoin issuers as 'licensed payment stablecoin issuers', requiring them to hold 100% high-quality liquid assets (such as cash and government bonds) as reserves and undergo regular audits.
Impact: Eliminates regulatory gray areas, compliant companies gain a legal moat, while projects with opaque reserves or algorithmic stablecoins will face elimination.
2. Balancing federal and state regulation
Allow state-level regulatory bodies to approve stablecoin issuance licenses while granting the Federal Reserve 'veto power' and the authority to set unified standards.
Impact: Avoids regulatory fragmentation (such as the conflict between New York's BitLicense and federal regulations), but may trigger a tug-of-war between state and federal powers.
3. Accelerating entry of banks and tech giants
Traditional banks can directly issue stablecoins, while non-bank institutions must meet capital and liquidity requirements. Tech companies like PayPal and Amazon may seize the opportunity to enter the market.
Impact: Centralized stablecoins (like USDT and USDC) face more intense competition, but overall industry credibility improves.
4. Suppression of DeFi and algorithmic stablecoins
The bill does not cover non-pegged algorithmic stablecoins (such as the UST model); DeFi protocols involving stablecoins may be classified as 'unauthorized issuers'.
Impact: Innovation in decentralized stablecoins is limited, and compliant stablecoins will dominate the market.
Two, the core role of stablecoins in future finance**
1. Reconstructors of the global payment system
Efficiency revolution: The settlement time for stablecoins has been reduced from the traditional 3-5 days for cross-border payments to seconds, with costs dropping by over 90%.
Case: Visa has used USDC to settle cross-border transactions, posing a disruptive challenge to the SWIFT system.
2. Bridges between traditional finance and the crypto economy
On-chain government bonds: For example, Circle invests USDC reserves in U.S. Treasury bonds, making stablecoins 'programmable short-term bonds', attracting traditional institutions to allocate crypto assets.
Tokenization of real-world assets (RWA): Real estate, commodities, etc., can achieve fragmented trading through stablecoins, enhancing liquidity.
3. Financial infrastructure of emerging economies
Dollarization 2.0: In countries with high inflation rates (such as Argentina and Turkey), the public is accelerating the adoption of stablecoins as savings tools.
Data: Chainalysis reports that stablecoin transaction volume in Latin America grew by 300% from 2022 to 2023.
4. Competition and complementarity of central bank digital currencies (CBDCs)
Private stablecoins may achieve large-scale application sooner than CBDCs (for example, Europe's MiCA Act opens the door for stablecoins).
Potential convergence: The Federal Reserve may allow banks to issue stablecoins pegged to CBDCs through a 'regulatory sandbox'.
Three, potential risks and challenges
Regulatory arbitrage and geopolitical games: If U.S. regulation is too strict, issuers may turn to friendly jurisdictions like Singapore and the UAE.
Systemic risk concentration: Large stablecoins (like USDC) may trigger on-chain financial turmoil if subjected to a bank run, necessitating bank-like stress testing mechanisms.
Privacy rights controversy: The conflict between on-chain transaction transparency and financial privacy may spur the demand for compliant privacy stablecoins.
Conclusion: Paradigm shift in financial order
If the (GENIUS Act) is enacted, compliant stablecoins will become the 'new bank deposits' of the digital age—combining fiat trust with crypto efficiency. In the short term, the market will experience growing pains (with small and medium players exiting), but in the long term, it will attract trillions of dollars in traditional capital. The role of stablecoins has transcended being mere trading tools and is evolving into:
✅ The settlement layer of global open finance
✅ Value anchor point for RWA tokenization
✅ Extension of sovereign currency in the digital space
In the next decade, achieving a balance between stablecoin regulation and innovation will determine whether the U.S. can maintain leadership in digital finance. A deeper question is: as currency programmability becomes the norm, the distribution of financial power will undergo a fundamental reconstruction.