Breaking news! The U.S. Senate has just passed the GENIUS stablecoin act, and now it's the House's turn to make a decision. Trump is anxiously urging the House to quickly pass a 'pure version' of the bill without additional clauses, but there are two factions in Congress arguing over separate stablecoin legislation while another insists on tying it to cryptocurrency market structure reform.
Why is this important?
A new weapon for dollar hegemony: The GENIUS Act requires all stablecoins to be 100% backed by cash and short-term U.S. Treasury bonds, essentially allowing compliant stablecoins like USDC to drain resources, helping the U.S. to absorb massive amounts of national debt (currently, U.S. Treasuries are hard to sell, and banks are afraid to buy).
Banks are going to cry: Bank of America Securities warns that this act could lead to $6.6 trillion in deposits fleeing to stablecoins, leaving small and medium banks in dire straits with no deposits and unable to lend.
USDC will win effortlessly: After the bill passes, compliant USDC will become the preferred choice for institutions. Recently, USDC's market cap has surged to $61 billion, a 38% increase this year! In contrast, while USDT remains the leader, it is under heavy regulatory scrutiny and may lose market share.
But the risks are sky-high!
Nobel laureate Jameson criticizes fiercely: This act resembles the loosening of regulations before the 2008 subprime mortgage crisis, and a stablecoin run could collapse the U.S. bond market, leaving taxpayers to clean up.
Trump family cash grab confirmed: The stablecoin USD1 supported by his family is entering the market, pushing legislation while issuing coins, and this operation is criticized as 'refereeing while playing'.
How should retail investors operate?
Rebalance for safety: Quickly convert USDT to USDC or PayPal's PYUSD for compliance and safety. USDT's over-the-counter premium has dropped to -2.1%, be careful of stepping on landmines.
Beware of hearing volatility: The Senate will hold a hearing on market structure on Tuesday. If the CFTC gains regulatory power, Bitcoin ETFs and futures may surge, but 'security tokens' like SOL and ADA could be hammered.
The last big truth:
The GENIUS Act is a conspiracy to exploit global investors with the dollar; short-term compliance profits can be rewarding, but it may trigger a financial crisis in the long run. Retail investors remember three things: Hold USDC, avoid high leverage, and place buy orders for BTC at 58,000! Wait for the big players to clean up.
Let you and me pick up bloody chips, for future arrangements please pay attention to the sea.