US Stablecoin Bill: A Win-Win for Blockchain Standards and Dollar Dominance

The U.S. stablecoin bill named the "GENIUS Act" will have far-reaching significance if it passes smoothly, and it may even become one of the five most important milestones in the history of cryptocurrency.

Although commonly referred to as the "Genius Act", its full name is actually "Guiding and Establishing National Innovation for the US Dollar Stablecoin". This act covers a wide range of content and mainly includes the following key points:

1. Mandatory 1:1 full asset reserve, including cash, bank demand deposits, and short-term U.S. Treasury bonds, and prohibited from being misappropriated or re-pledged.

2. Require high-frequency information disclosure, with at least one reserve report published each month, and introduce external audits.

3. Licensing system: When the market circulation value of stablecoins exceeds 10 billion USD, the issuer must transfer to the federal regulatory system within the stipulated time.

4. Introduce a custody mechanism that requires the custodians of stablecoins and their reserve assets to be regulated qualified financial institutions.

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

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

The passage of this bill will have far-reaching effects:

First, it will eliminate people's doubts about stablecoins. In the past, stablecoins were often seen as opaque black boxes, frequently causing controversy. Now, this black box will turn into a transparent white box, greatly enhancing user confidence.

Secondly, it establishes Blockchain as the standard. In the competition with central bank digital currencies, the victory of stablecoins means that the Blockchain + Token model will become the dominant standard. This will drive more users to learn to use cryptocurrency wallets, bringing tremendous opportunities to the entire industry.

Moreover, it will simplify the deposit process for cryptocurrencies. Once the bill is passed, traditional financial institutions may directly support stablecoins, making the flow of funds from traditional financial markets to the cryptocurrency market more convenient.

Finally, stablecoins, as a tool for digesting US Treasury bonds, will become an important part of the American financial system. Once this win-win situation is formed, it will be difficult to reverse.

Overall, this bill not only clears the obstacles to the development of stablecoins but also has the potential to propel the entire cryptocurrency industry into a new stage of development. It both consolidates the global status of the dollar and paves the way for the widespread application of Blockchain technology.