US Stablecoin Bill: A Dual Victory for Blockchain Standards and Dollar Hegemony

The new stablecoin bill proposed by the US, if passed smoothly, will have very far-reaching implications and may even become an important milestone in the development of cryptocurrency.

The full name of this bill is "Guiding and Establishing a National Innovation for US Dollar Stablecoin", abbreviated as the GENIUS Act. Although it is called the "Genius Act", its substantive content is more pragmatic and comprehensive.

The main highlights of the bill include:

1. Mandatory 1:1 asset reserve, including cash, bank demand deposits, and short-term U.S. Treasury bonds. Misappropriation and re-pledging are strictly prohibited.

2. Require frequent information disclosure, publishing a reserve report at least once a month, and introduce external audits.

3. Introduce a licensing system, issuers of stablecoins with a circulating market value exceeding $10 billion must be subject to federal regulation.

4. The reserve assets are required to be custodied by regulated qualified financial institutions.

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

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

This bill is of great significance, as it will bring multiple positive impacts to the stablecoin industry:

First, it will greatly enhance the transparency and credibility of stablecoins. In the past, people had many concerns about stablecoins, believing they were opaque "black boxes". The implementation of the new legislation will turn stablecoins into transparent "white boxes", alleviating people's worries about the safety of their funds.

Secondly, this legislation is expected to establish the position of blockchain technology as the underlying standard for stablecoins. This means that future stablecoin users will need to learn how to use cryptocurrency wallets, paving the way for broader cryptocurrency applications.

Moreover, after the bill is passed, it will greatly facilitate the funding channels for stablecoins. Traditional financial institutions may become more proactive in supporting stablecoin businesses, making the flow of funds from traditional financial markets to cryptocurrency markets smoother.

Finally, as an important channel for digesting U.S. Treasury bonds, the legalization of stablecoins will provide more liquidity support to the U.S. Treasury market. This function is of significant importance to the U.S. economy; therefore, once the legislation is passed, it will be difficult for the U.S. government to retract this policy.

Overall, this bill is expected to clear many obstacles to the development of stablecoins, establish the dominance of Blockchain technology, and bring new development opportunities to the cryptocurrency industry. It is not only an extension of dollar hegemony but also an important breakthrough in the application of Blockchain technology in the financial sector.