In the past few days, there have been news about stablecoins everywhere, and everyone has been paying attention to two recent pieces of news.
1: The "Hong Kong Stablecoin Regulation" will take effect on August 1, and Ant Group and JD Finance have rushed to apply for stablecoin licenses.
2: A company in the U.S. that operates in the stablecoin business has recently gone public, and its stock price is soaring.
But I want to understand why the U.S. is promoting stablecoin legislation at this particular time?
So I've looked for some relevant information. Let's see if this is actually a good thing?
Stablecoins were actually born as early as 2014, but not many people used them before?
The promotion of stablecoins is reportedly closely related to Trump's return to the political arena. Since taking office, he has been promoting a policy path that balances regulation and "de-regulation" related to cryptocurrency.
What we see now with Circle's IPO is actually taking flight on this trend, combined with the two latest bills introduced in the U.S.: one is the "STABLE Act" and the other is the "GENIUS Act."
Jokingly, it is said that the U.S. now has two bills that correspond exactly to Trump's description of himself during his first term: "stable genius," reflecting a certain symbolic meaning.
Back to the point, the linkage between Circle's IPO and the U.S. government's push for stablecoin legislation is very close. Circle, as a company that operates within a regulatory framework, is a representative of "compliance" stablecoins, and it is happy to accept this regulated identity. This background has made Circle highly sought after under the current policy trend.
In addition, it is currently the only truly compliant stablecoin target in the market, which gives it scarcity and naturally makes it the focus of capital's pursuit.
For Trump, stablecoins could indeed become the "savior" of U.S. Treasury bonds.
From a micro perspective, the birth of stablecoins originates from the rise of on-chain assets, and due to the characteristics of blockchain, they have the opportunity to become a new generation of cross-border payment means.
Stablecoin issuers earn profits by holding reserves of dollar assets, which, under normal circumstances, is a good business with no capital investment.
Stablecoins seem to be a tool to consolidate the dominance of the dollar, but there are actually more complex dynamics behind it.
What do you think?
