The "Genius Act" has not been in effect for a month, and an unexpected sniper battle has begun in Washington. On August 16, 52 banks, lobbying groups, and consumer organizations led by the American Bankers Association (ABA) jointly issued a letter to the Senate Banking Committee, publicly calling for amendments to the "Genius Act."

The core appeal of the joint action directly targets the special provisions in the "Genius Act," arguing that it poses a threat to the existing financial system in the United States. Behind the joint letter is a multi-faceted game of power struggle between old and new forces regarding regulatory authority, credit models, and sources of profit. The traditional banking sector is concerned that if the "Genius Act" is allowed to be fully implemented in its current form, it may threaten its core position in the financial industry chain.
Background Retrospective: The Rise of the Trillion-Dollar Stablecoin Market
The passage of the "Genius Act" comes at a time when the stablecoin market is experiencing exponential growth. Over the past three years, the stablecoin market has steadily grown, continuously setting new highs. As of August 19, the total size of the stablecoin market is approaching $267.5 billion. Among them, USDT and USDC account for over 85% of the market share, with market capitalizations exceeding $165 billion and $66 billion, respectively. The highly concentrated market structure highlights the significant influence of Tether and Circle, the two major stablecoin issuers.

Both Standard Chartered Bank and US Treasury Secretary Janet Yellen predict that under the regulatory framework of the "Genius Act", the stablecoin market is expected to reach a volume of $2 trillion by the end of 2028. This anticipated explosive growth suggests that stablecoins are undergoing a transformation from being "crypto speculative tools" to becoming "major buyers of US Treasuries."