US Stablecoin Bill: A Milestone Reshaping the Crypto Assets Landscape

The stablecoin bill that the United States is considering, if passed smoothly, will have far-reaching implications and may even become one of the most important events in the history of Crypto Assets development.

The full name of this bill is "Guiding and Establishing National Innovation for U.S. Dollar Stablecoin", abbreviated as "GENIUS Act". Although referred to as the "Genius Act", its substantive content is far more important than the name.

The main content of the bill includes:

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

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

3. Introduce a licensing system. When the market capitalization of the stablecoin issuer exceeds 10 billion USD, it must be transferred into the federal regulatory system within the specified time frame and undergo strict regulation similar to that of the banking industry.

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

5. Clearly define stablecoin as a new type of payment medium, primarily constrained by the banking regulatory system rather than the securities or commodities regulatory system.

6. Provide existing stablecoins with a transition period of up to 18 months for their issuers to obtain licenses or complete compliance.

The significance of this bill lies not only in its specific content but also in the profound impact it brings to the Crypto Assets industry:

First, it will eliminate people's doubts about stablecoin. In the past, stablecoins were often seen as opaque "black boxes," frequently causing controversy. The new bill will turn this "black box" into a transparent "white box." Frequent information disclosures and strict regulations will greatly enhance user confidence.

Secondly, this bill establishes the position of blockchain technology in the financial sector. Compared to Central Bank Digital Currencies (CBDCs), blockchain-based stablecoins will become the mainstream standard. This means that future financial innovation will revolve more around blockchain technology.

Third, it will greatly promote the popularity of Crypto Assets. Once stablecoins receive legal support, traditional financial institutions may find it easier to support stablecoin operations. This will make it easier for ordinary investors to enter the Crypto Assets market, lowering the barriers to entry.

Finally, the legalization of stablecoins will provide a new source of liquidity for the U.S. debt market. Although stablecoins cannot directly resolve debts, they offer a new source of funding for the secondary market of U.S. Treasury bonds. Once this role is established, it will be difficult for the U.S. government to abandon this tool.

Overall, this bill is not just a regulation of stablecoins, but also a significant boon for the entire Crypto Assets industry. It will clear development obstacles, establish technical standards, and bring more opportunities to the industry. As the bill progresses, we may be on the brink of a new era for Crypto Assets.