The United States Officially Establishes a Regulatory Framework for Digital Stablecoins

On the 18th, U.S. President Trump signed the "Guidance and Establishment of the American Stablecoin National Innovation Act" (, referred to as the "Genius Act" ), marking the first formal establishment of a regulatory framework for digital stablecoins in the United States.

Trump stated that stablecoins will increase the demand for U.S. Treasury bonds, helping to lower U.S. interest rates and solidify the dollar's position as the global reserve currency. Since the beginning of his second term, Trump has introduced several initiatives supporting cryptocurrency. The U.S. has recently accelerated the legislative process for the "Genius Act," which will have significant implications for the country.

The legislative process is advancing rapidly

On June 17, the U.S. Senate passed the "Genius Act" with a vote of 68 in favor and 30 against, marking the first time the chamber has approved significant cryptocurrency legislation.

On July 17, the U.S. House of Representatives voted to pass three bills related to stablecoins and cryptocurrencies, including the "Guidance and Establishment of a National Innovation Act for U.S. Stablecoins," the "Digital Asset Market Clear Act," and the "Anti-Central Bank Digital Currency Surveillance National Act."

The next day, Trump officially signed the "Genius Act" and described it as "one of the greatest changes in financial technology since the birth of the internet." At the same time, he reiterated that "he would never allow a central bank digital currency to be established in the United States."

Stablecoin Overview

A stablecoin is a type of cryptocurrency whose price is relatively stable, usually maintaining a fixed exchange rate of 1:1 with the US dollar. After the implementation of the "Genius Act", stablecoins will be required to be backed by liquid assets such as US dollars or US short-term government bonds, and issuers will be required to disclose stablecoin reserve details on a monthly basis.

Currently, the two largest stablecoins by market capitalization in the world are Tether ( USDT ) and USD Coin ( USDC ), which together account for about 90% of the total market capitalization. Stablecoins were first launched in 2014, and by 2020, the global stablecoin market capitalization was only $20 billion. Since then, driven by demand for cryptocurrency trading and safe-haven assets in emerging market countries, the stablecoin market has grown rapidly.

According to statistics from data platforms, the current stablecoin market size is approximately $247 billion. The U.S. Treasury Secretary expects the stablecoin market to grow to $3.7 trillion by 2030.

The Purpose of the U.S. Government in Promoting Stablecoins

Experts believe that the U.S. government promotes stablecoins for the following main purposes:

1. Maintain and enhance the influence of the US dollar in the digital currency space.
2. Relieve future pressure on U.S. bonds by issuing stablecoins.
3. Maintain the dominant position of the United States in the global monetary and payment systems.
4. Enhance the competitiveness of the United States in the future global currency and payment systems.

Can stablecoins maintain the status of the US dollar?

Experts analyze that the global influence of the US dollar stems from the international economic order established after World War II. The current policies of the Trump administration show a stance of not recognizing the US trade deficit, which may restrict the circulation of the dollar in international markets.

The widespread acceptance of a currency or payment method depends not only on the cost of use but also closely relates to the credibility it represents. Experts believe that whether the United States can fulfill its global responsibilities, adhere to its commitments, and maintain the stability of the global trade economy, rather than intervening in international economic and trade relations through sanctions and extraterritorial jurisdiction, will play a key role in the development of stablecoin.

If the United States cannot change the way it determines the value of the dollar, and merely transforms the dollar into another form of representation, then both the dollar and the corresponding stablecoin may struggle to gain broader global support.

The bill is controversial in the United States.

Analysts believe that the passage of the "Genius Act" will pave the way for U.S. banks to issue digital assets independently. Many Wall Street executives have shown strong interest in engaging in digital asset businesses, but some bank executives have also cautioned that the actual demand for digital currencies needs to be carefully assessed.

The "Genius Act" has faced some skepticism and opposition from both parties in the United States. Some Democrats believe that the bill fails to provide adequate protections for consumers, national security, and financial stability. Some Republicans have pointed out that the bill conflicts with the executive order signed by Trump in January of this year, particularly concerning the ban on implementing central bank digital currencies.