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

The recently proposed U.S. stablecoin bill, the "GENIUS Act," if passed smoothly, will greatly change the landscape of the cryptocurrency industry. The full name of this bill is "Guiding and Establishing National Innovation for Dollar Stablecoins," and its significance may hold an important place in the history of cryptocurrency development.

The main content of the bill includes:

1. Mandatory 1:1 full asset reserves, including cash, bank demand deposits, and short-term U.S. Treasury bonds, are prohibited from being misappropriated or re-pledged.

2. The issuer is required to publish a reserve report at least once a month and to introduce external audits.

3. Implement banking-level regulation on stablecoin issuers with a circulating market value exceeding 10 billion USD.

4. It is required that stablecoins and their reserve assets must be custodied by regulated qualified financial institutions.

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

6. Provide a compliance transition period of up to 18 months for existing stablecoins.

The passage of this bill will have far-reaching impacts in multiple aspects:

First, it will address people's concerns about the opacity of stablecoins. By enforcing asset reserves and high-frequency information disclosure, stablecoins will transform from "black boxes" to "white boxes," enhancing user confidence.

Secondly, stablecoins will become the standard carrier of Blockchain applications. This means that Blockchain technology will gain wider application and recognition in the financial sector.

Furthermore, the legalization of stablecoins will simplify the deposit process for cryptocurrencies. Traditional financial institutions may more easily support stablecoins, providing users with more convenient channels for cryptocurrency investment.

Finally, stablecoins, as an important component of the US Treasury market, will provide new vitality to the US financial system. Once the bill is passed, the benefits it brings may make this policy difficult to reverse.

Overall, stablecoins are becoming one of the most practical innovations in the cryptocurrency industry. With the removal of legal barriers and improvements in user experience, stablecoins are expected to play a more significant role in the future financial system.