Major Breakthrough in US Cryptocurrency Monetary Policy

Last week, the United States made historic progress in the regulation of Crypto Assets. During a critical period known as "Crypto Assets Week," several landmark bills were introduced.

On July 19, the "GENIUS Act" was officially signed into law. This news immediately boosted market sentiment, pushing the total market capitalization of Crypto Assets to surpass 4 trillion dollars for the first time, and the issuance of stablecoins also hit a new high of 261 billion dollars. The Act sets a unified standard for stablecoins, prompting several financial giants to announce pilot programs. The clarity in Crypto Assets regulation has reduced uncertainty in the industry, allowing institutional investors to utilize previously idle funds, enabling large banks to compliantly enter the stablecoin market, and allowing users to conduct transactions more privately. This Act positions Crypto Assets as a core pillar of the next generation financial internet, while also pushing the United States towards the status of a global Crypto Assets hub.

After months of debate, the CLARITY Act has been passed in the House of Representatives and is now rapidly submitted for review by the Senate. The bill clarifies the regulatory responsibilities of agencies regarding the regulation of digital assets. In addition, the Anti-CBDC Act has also been incorporated into the National Defense Authorization Act, prohibiting the issuance of centralized digital dollars without explicit approval from Congress.

Analysis of the GENIUS Act

The "GENIUS Act" clarifies the qualifications for stablecoin issuance and the requirements for reserve assets. The Act positions stablecoins as institutional-level payment channels rather than mere transaction objects. This will drive innovation across the entire value chain from machine payments to cross-border trade, while ensuring that global dollar liquidity remains under the supervision of U.S. regulators.

The main content includes:

• Compliant issuers include federally regulated banks, non-bank issuers licensed by the OCC, and state-chartered issuers (with a circulation not exceeding $10 billion).
• The value of reserve assets must be equal to or greater than the total face value of the issued stablecoins.
• Qualified reserve instruments include cash, short-term government bonds, and overnight reverse repurchase agreements collateralized by government bonds, among others.
• The issuer must publish reserve details monthly and undergo independent audits annually.

Although the bill prohibits interest-bearing stablecoins, many projects may indirectly provide returns through mechanisms such as loyalty programs and rebates. This regulatory pressure is expected to accelerate the consolidation of the stablecoin industry, pushing the industry towards a centralized structure.

Key Points of the CLARITY Act

The "CLARITY Act" fills the regulatory gap in the infrastructure of stablecoin transactions, clearly delineating the responsibilities of regulatory agencies in the supervision of digital assets. The Act provides precise legal definitions for "digital assets", "digital commodities", and "mature blockchain systems".

According to the bill, regulatory agencies are responsible for overseeing tokens that have the attributes of an "investment contract", while another regulatory agency governs "digital goods". The bill allows digital assets to "migrate" from the former regulatory oversight to the latter once they achieve sufficient decentralization and widespread adoption.

The "CLARITY Act" also clearly defines the connotation of "decentralization":

• Mature blockchain systems must possess openness and interoperability.
• A mature blockchain system must have a governance mechanism, and no individual or group should have unilateral control.

This certainty brings much-needed relief to industry innovators and paves the way for predictable development.

Key Points of the Anti-CBDC Bill

The "Anti-CBDC Act" aims to prevent the creation and implementation of central bank digital currencies without Congressional authorization. This provision prohibits the government from searching and seizing the financial data of Americans, while also closing loopholes for the indirect issuance of central bank digital currencies through third-party intermediaries.

This legislative framework sends a clear policy signal: the U.S. government chooses to support stablecoins on decentralized ledgers rather than centralized digital currencies on permissioned government ledgers. This approach reduces the likelihood of state-led financial surveillance and protects individual financial privacy.

Industry Impact and Outlook

With the increasingly clear regulation of Crypto Assets in the United States, the industry is experiencing a strong recovery centered around the U.S. The demand for local talent has surged, and many overseas teams are returning to the United States. The token issuance model is also transforming to "adapt to the U.S. market," with more and more projects choosing to issue tokens directly through U.S. entities.

A new era of regulatory certainty is injecting strong momentum into the digital asset industry, driving the flourishing development of innovative stablecoin banks and payment companies. Whether industry leaders or newcomers, they are quickly launching institutional-grade solutions, which are the core pillars of a mature Crypto Assets ecosystem.

With its rapid development momentum and solid legal framework, the United States is swiftly consolidating its position as a global Crypto Assets center. The introduction of this series of bills marks a new development stage for the Crypto Assets industry.