Let's talk about a recent hot topic in the crypto world, it's quite interesting.

Currently, the GENIUS Act stipulates that stablecoin issuers cannot directly pay interest to holders, but it leaves a loophole—there's no mention that third parties can't do so. So exchanges and DeFi platforms are using "yield rewards" as a way to indirectly pay interest. The new Clarity Act aims to close this loophole, but the gray area still exists.

It reminds me of a story from 700 years ago.

Back then, the Knights Templar developed a form of "encrypted cross-border payment"—you deposit gold in London, they give you an encrypted certificate, and you can withdraw money in Jerusalem using that certificate. This business made the Templar Order incredibly wealthy, becoming France's largest creditor. But King Philip IV of France had no intention of repaying—he simply branded the Templars as heretics, confiscated their assets, and arrested them.

Today, the US national debt has exceeded $39 trillion, with annual interest alone over $1 trillion. Looking at it this way, the US government probably won't be able to pay back honestly in the future. But it can't just eliminate its creditors like Philip IV did—because the holders of US debt are too dispersed, with foreign holders from Japan, China, the UK, and others holding a large portion. Outside US jurisdiction, forcing a default would collapse the dollar's credit.

So, what can be done?

The current stablecoin legislation offers a solution. The GENIUS Act requires issuers to hold reserves in US Treasuries, while the actual users of stablecoins are retail investors worldwide. Money flows in from abroad, but the creditors become licensed issuers registered in the US. This completes a key transformation: shifting the dispersed debt claims held by central banks and institutions worldwide to a few entities under US jurisdiction.

As long as creditors are within the control scope in the US, future management becomes much easier.

Therefore, I believe regulators are currently turning a blind eye, allowing stablecoin growth to expand first. When the time is right, this gray area will become a tool for liquidation.

Interestingly, after the Knights Templar were liquidated, cross-border finance in Europe didn't stop for a day—just a new set of players took over—from the Templars to Italian bankers, then Dutch and British financiers, evolving into today’s modern banking system.

If one day stablecoin issuers are liquidated, especially those with a shady history like Tether, it wouldn't be surprising at all. $BTC ‌$ETH ‌