The first state-level stablecoin in the United States is issued on 7 blockchains! Are U.S. banks joining forces to resist stablecoins?

In the landscape of digital finance in the United States, a multi-layered game about the future is being played out fiercely. At the state level, Wyoming, with its consistent pioneering spirit, has recently officially launched the first state-supported stablecoin in the country, showcasing the immense potential of technological innovation to the world. However, at the federal level, an intense lobbying battle led by traditional banking giants, aimed at shaping and even controlling the future of the digital dollar, has also entered a fever pitch. These two distinctly different dynamics together reveal the complexity and profound contradictions the United States faces in its journey towards the era of Digital Money.

state-level stablecoin

For a long time, Wyoming has been a legislative pioneer in the field of Digital Money in the United States. Today, it has once again solidified this position with practical actions by officially launching a stablecoin called "FRNT". This is not only a first in American history, but its design concept and technical implementation also set a new benchmark for future government-level Digital Money.

The core advantage of FRNT lies in its unparalleled transparency and security. Unlike many stablecoins issued by private companies, each token of FRNT is fully backed 1:1 by U.S. Treasury securities held in a trust managed in Wyoming. This means its value foundation is extremely solid and completely transparent, aimed at maximizing users' confidence in the safety of the reserve assets.

More forward-looking is its cross-chain deployment strategy. In order to achieve the widest applicability and interoperability, FRNT was launched simultaneously on seven major blockchain networks, including Ethereum, Polygon, Avalanche, Arbitrum, BNB Chain, Polkadot, and Osmosis. This initiative ensures that users and developers from different ecosystems can seamlessly access and use FRNT, greatly expanding its potential application scenarios, from personal payments to complex decentralized finance (DeFi) applications.

Through the issuance of FRNT, Wyoming is not only creating a new Digital Money asset but also exporting a regulatory concept—by leveraging government-level credit endorsement and the highest standard of technical practice, it is possible to create a digital dollar solution that embraces innovation while fully protecting user rights.

GENIUS Act

However, while Wyoming is actively innovating, a "power struggle" concerning the future of stablecoins in the United States is intensifying in Washington. At the heart of this struggle is a federal-level legislation draft for stablecoin regulation known as the "GENIUS Act." In this fight, the banking industry, representing the traditional financial power of the United States, is not simply showing a posture of "collaboration" or "embrace," but rather a strongly exclusive "resistance."

Powerful banking lobbying groups represented by the American Bankers Association (ABA) and the Bank Policy Institute (BPI) are making every effort to influence the GENIUS Act. Their core demand is not to stifle all stablecoins; on the contrary, they want to control the future of stablecoins. In their comments submitted to lawmakers, they strongly oppose the provisions in the bill that allow non-bank entities, such as fintech companies and cryptocurrency firms, to issue stablecoins.

The argument in the banking sector is that stablecoins, as a payment tool that is highly similar to currency, should have their issuance rights strictly limited to federally insured deposit institutions (i.e., banks) that are subject to comprehensive and prudent regulation. They believe that allowing non-bank entities such as technology companies to issue "currency-like" instruments on a large scale without having to bear the same level of capital requirements, liquidity management, and consumer protection responsibilities as banks would pose a significant threat to the stability of the entire financial system.

Therefore, the American banking industry is not resisting the concept of "stablecoin" itself, but is firmly opposing a future not dominated by them, which allows technology companies to share the "coinage rights". Their goal is to amend the "GENIUS Act" to tightly bind the issuance qualifications of stablecoins to bank licenses, thereby excluding all potential competitors from the market.

Two battle lines

In summary, the future of stablecoins in the United States is unfolding along two distinctly different paths. At the state level, innovative forces represented by Wyoming are exploring best practices for government-supported Digital Money through practical actions. At the federal level, a power struggle over top-level design and market access qualifications is taking place, with traditional banking leveraging all its political energy to firmly control the future Digital Dollar within its own system.

The FRNT stablecoin from Wyoming may represent one of the most ideal forms of stablecoins: issued by a trusted entity, with transparent reserves and advanced technology. Meanwhile, the lobbying battle within the banking sector reveals the timeless struggle over power, interests, and control that can never be avoided behind financial innovation. The ultimate intertwining and outcome of these two fronts will not only determine the final shape of the stablecoin market in the United States but will also have a profound impact on the future landscape of global digital finance.