In June 2025, a piece of news hit the crypto world like a boulder thrown into a calm lake, stirring up tremendous waves—The U.S. Senate passed the (Stablecoin Regulatory Bill) (GENIUS Act). The passage of this bill marks the first time the U.S. has established a unified framework for the issuance and regulation of stablecoins at the federal level, its influence rapidly spreading in the global crypto market, drawing significant attention from investors, practitioners, and regulators.
Interpretation of the core points of the bill
The tiered issuance system becomes a key aspect of the bill. It requires stablecoin issuers to hold 100% dollar reserves, akin to adding a solid 'security lock' to stablecoins, ensuring that each stablecoin is backed by real dollar assets. At the same time, it reinforces the audit process, requiring regular disclosure of reserve information. In the event that an issuer faces bankruptcy, there are specialized mechanisms in place to ensure the safety of user assets. Anti-money laundering and KYC (Know Your Customer) standards have also been further clarified and strengthened, aimed at closing loopholes that allow criminals to use stablecoins for illegal transactions.
Dual impact on traditional finance
The bill brings transformative opportunities to traditional finance, with cross-border payments being the first to be affected. In the past, cross-border transfers were conducted through the SWIFT system, which had high fees and slow speeds. The emergence of compliant stablecoins is expected to break this dilemma, enabling 24/7 rapid settlement and greatly enhancing the competitiveness of U.S. fintech in the international arena, accelerating the digitalization of the dollar. Additionally, the bill requires that stablecoin reserves be in U.S. cash or short-term government bonds, which is expected to drive hundreds of billions of dollars in short-term bond demand and provide strong support for U.S. Treasury financing and monetary policy operations.
However, challenges also arise. Small and medium-sized banks face the risk of deposit outflows, with funds more easily flowing to on-chain wallets, putting immense pressure on regional banks that lack technological integration capabilities. The traditional payment and custody functions of banks are also impacted, as the convenient settlement capabilities of compliant stablecoins diminish the advantages of centralized payment value chains like banks and clearinghouses. The dual federal and state regulatory system may also lead to compliance overlap, increasing coordination costs.
The crypto ecosystem faces reshaping
In the cryptocurrency field, the passage of this bill brings mixed feelings. Compliant DeFi projects are ushering in a spring, with mainstream lending, DEX, and other protocols deeply binding with compliant stablecoins like USDC and PYUSD, paving the way for institutional capital entry. On-chain real asset (RWA) projects also become beneficiaries, as they can legally use compliant stablecoins as trading and collateral mediums, promoting compliant tokenization development. Web3 payment infrastructure will gradually take shape, with applications like NFTs and blockchain games expected to use stablecoins as a native payment method, creating a more complete closed-loop ecosystem for Web3 applications.
But for non-compliant stablecoins like USDT, things are looking bleak. It faces dual pressures of audit transparency and regulation, and users in East Asia may turn to USDC, resulting in a decline in on-chain usage. Anonymous protocols will also suffer heavy blows, being viewed as high-risk entities, facing potential delisting, restricted access, and even legal crackdowns.
In the future, under the influence of this bill, the compliance process in the crypto market will accelerate, reshaping the market landscape. Investors need to closely monitor policy dynamics and adjust investment strategies; practitioners should actively adapt to new regulations and explore compliant development paths.
