U.S. President Trump signed the (GENIUS Act), marking the official establishment of the first federal regulatory framework for stablecoins in the United States. This event will have far-reaching implications for the global financial landscape and bring new opportunities and challenges to the cryptocurrency market.
The core of the bill is to strengthen the regulation of stablecoins, requiring a 100% reserve system, monthly public disclosure of reserve asset details, and strict limitations on the issuance of licenses. This will effectively curb algorithmic stablecoins and improve the transparency and security of stablecoins. The goal of the Trump administration is to consolidate the dollar's hegemonic position and promote the use of stablecoins globally.
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After the bill's implementation, Wall Street giants quickly took action, with financial institutions like JPMorgan and Citigroup entering the market to explore the applications of stablecoins and blockchain technology. Some banks have already begun to experiment with deposit tokens and plan to launch cryptocurrency payment services. The settlement volume of Visa's stablecoins has also seen significant growth. Notably, the U.S. retirement 401k plan, worth $8.9 trillion, may also allocate funds to the cryptocurrency market.
Investment opportunities coexist with risks.
This new policy brings new opportunities for investors but also carries some risks. In the short term, compliant stablecoins and exchanges will benefit from this policy. In the medium term, the influx of institutional funds will drive up the prices of cryptocurrencies like Bitcoin and Ethereum. In the long term, the stablecoin market will reshape the global payment system, and the dollar's hegemonic position may be further consolidated.
However, the bill also has some controversies, such as the potential to exacerbate monopolies in the payment sector and issues related to anti-money laundering loopholes. Additionally, the increased demand for stablecoins for U.S. Treasury securities may pose risks to the U.S. bond market.
Investment advice: cautiously optimistic.
In the short term, focus on compliant stablecoins and exchanges. In the medium term, mainstream cryptocurrencies like Bitcoin and Ethereum are core assets worth paying attention to. Keep an eye on policy changes and market risks. Remember, pullbacks are good buying opportunities, but don't be greedy; invest prudently.
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