The US Stablecoin Bill "GENIUS Act": A Dual Victory for Blockchain and Dollar Hegemony

If the newly proposed "GENIUS Act" stablecoin bill in the United States passes smoothly, its significance will be extremely profound and may become one of the most important events in the history of cryptocurrency.

The full name of this bill is "Guiding and Establishing National Innovation for the US Dollar Stablecoin," and its core content includes:

1. Enforce a 1:1 full asset reserve, including cash, bank demand deposits, and short-term U.S. Treasury bonds, and prohibit misappropriation or re-pledging.

2. Require high-frequency information disclosure, publish a reserve report at least once a month, and introduce external audits.

3. Establish a licensing system. When the circulating market value of stablecoins exceeds 10 billion USD, the issuer must be incorporated into the federal regulatory system.

4. Introduce a custody mechanism that requires stablecoins and their reserve assets to be custodied by regulated qualified financial institutions.

5. Clearly define stablecoins as a new type of payment medium, primarily constrained by banking regulatory systems.

6. Set a maximum compliance transition period of 18 months for existing stablecoins.

The passage of this bill will bring significant impacts in multiple areas:

First, it will eliminate people's concerns about stablecoins. In the past, stablecoins were often seen as opaque "black boxes" and frequently faced scrutiny. The new legislation will make them transparent "white boxes," greatly enhancing user confidence.

Secondly, this legislation establishes the dominant position of Blockchain technology in the digital currency sector. Compared to central bank digital currency (CBDC), blockchain-based stablecoins will become the mainstream standard. This means that in the future, every stablecoin user will need to learn to use digital wallets, paving the way for the popularization of cryptocurrencies.

Moreover, the legalization of stablecoins will greatly facilitate the deposit and withdrawal process. Traditional financial institutions may begin to support stablecoins, making the flow of funds between traditional finance and the cryptocurrency market smoother.

Finally, as an important tool for digesting U.S. Treasury bonds, stablecoins provide more liquidity to the secondary market for U.S. Treasury bonds. Once they taste the benefits, it will be difficult for the U.S. government to give up this innovation.

For the cryptocurrency industry, stablecoins are undoubtedly one of its most successful applications. With the advancement of legislation, stablecoins are expected to become an important bridge connecting traditional finance and the crypto world, propelling the entire industry into a new stage of development.