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

The recently proposed stablecoin bill in the United States, if passed smoothly, will be of great significance and may even become one of the most important turning points in the history of cryptocurrency.

This bill is officially titled "Guiding and Establishing National Innovation for the US Dollar Stablecoin," abbreviated as the GENIUS Act. Although named the "Genius Act," its substantive content is far more profound.

Several key points of the proposal include:

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

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

3. Licensing system: When the market circulation value of stablecoins exceeds 10 billion USD, the issuer must be included in the federal regulatory system.

4. Introduce a custody mechanism, requiring stablecoins and their reserve assets to be custodial by regulated qualified financial institutions.

5. Clearly define stablecoins as a new type of payment medium, primarily subject to the constraints of the banking regulatory system.

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

The significance of this bill is far-reaching, not only clearing the long-standing concerns in the stablecoin industry but also making it a transparent and trustworthy financial tool. In the past, stablecoins were often viewed as opaque black boxes, regularly triggering market worries. In the future, frequent information disclosure and strict regulation will greatly enhance their credibility.

More importantly, this bill is expected to establish blockchain and tokens as the standard technology for stablecoins. This means that in the future, every stablecoin user will need to learn how to use a crypto wallet, bringing a large number of new users to the cryptocurrency ecosystem.

In addition, the legalization of stablecoins will greatly simplify the funding channels for cryptocurrencies. Traditional financial institutions may begin to support stablecoins, making the transfer of funds from the traditional financial system to the cryptocurrency market more convenient.

From a macro perspective, stablecoins, as an important tool for digesting U.S. Treasury bonds, will further integrate into the U.S. financial system. Once the benefits are tasted, 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. As the bill progresses, the barriers to industry development will gradually be removed, paving the way for widespread adoption. In the future, we are likely to witness a new era of cryptocurrency, where stablecoins will become a key bridge connecting traditional finance and the world of digital assets.