Global Stablecoin War: U.S. Strangles, Asia Opens, Trade Shifts
1️⃣U.S. Cracks Down: Banking or Bust
✔️June 17: Senate passes the GENIUS Act.
✔️Who can issue stablecoins? Only banks or FDIC-insured entities.
✔️Reserve requirements: 100% backed by cash or short-term Treasuries.
✔️Oversight: Monthly audits and strict AML/KYC rules.
✔️Consumer protection: Stablecoins get bankruptcy safeguards.
✔️Next move: New York’s Attorney General wants even stricter rules — including digital IDs, mandatory onshore accounts, and federal insurance coverage.
2️⃣ Main Purpose of the GENIUS Act:
✓Protect consumers:
Stablecoin holders paid even if issuers collapse
✓Lock in transparency:
Monthly reserve disclosures, annual audits
✓Prevent systemic risk:
No shadow stablecoins threatening financial stability
✓Define clear issuer rules:
Keep stablecoins outside SEC/CFTC securities scope
🔥Tomorrow (July 14–18) the House starts “Crypto Week” to vote on this before lawmakers break for August recess.
💬 As politicians phrase it:
•Require to be regulated like banks or barred.
•Unregulated stablecoins pose systemic risks.
3️⃣ Asia Opens Doors:
🇭🇰 Hong Kong launches stablecoin licensing August 1, requiring full reserves and AML compliance but welcoming fintechs, foreign, and crypto firms.
40+ firms queued, including Ant Group, Standard Chartered, Circle.
🇰🇷 South Korean exporters quietly settle invoices in USDT & USDC — dodging slow SWIFT and FX slippage. Not abandoning the dollar but bypassing old USD bank rails.
Also:
🇦🇪 UAE is building a global stablecoin clearing hub for oil and trade, sidestepping traditional USD channels.
4️⃣Who wins?
Whoever masters trust, compliance, and speed — and breaks free from U.S. control first — will rewrite the future of global finance.
They’ll capture the lion’s share of cross-border trade, unlock new liquidity flows, and define the rules of the digital money era.
The race is on.
