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

If this new U.S. stablecoin bill passes smoothly, its significance will be far-reaching and may even become one of the five most important events in the history of cryptocurrency.

Although it is commonly referred to as the "Genius Act", its full name is actually "Guiding and Establishing National Innovation for the US Dollar Stablecoin". This proposal is rich in content and mainly includes the following key points:

1. A 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. High-frequency information disclosure, requiring at least one reserve report to be published each month, and introducing external audits.

3. Licensing system, which stipulates that stablecoin issuers with a market capitalization exceeding 10 billion USD must be incorporated into the federal regulatory framework.

4. Introduce a custody system 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. Provide existing stablecoins with a compliance transition period of up to 18 months.

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

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

Secondly, it will establish Blockchain as the standard for stablecoins. This means that in the future, every stablecoin user will need to learn how to use a cryptocurrency wallet, bringing a huge user base to the entire industry.

Third, it will simplify the deposit process for cryptocurrencies. After the bill is passed, traditional brokers may support stablecoins, making it easier for investors to transfer funds into the cryptocurrency market.

Finally, as an important channel for digesting U.S. Treasury bonds, stablecoins will become an important component of the U.S. financial system. Once the legislation is passed, it will be difficult for the U.S. to give up this advantage.

For the cryptocurrency industry, stablecoins represent a significant innovation. With the removal of legal concerns, the establishment of technical standards, and the expansion of deposit channels, we may usher in a new era of cryptocurrency.