Author: Peter_Techub News
In 2025, the U.S. Genius Act (Guiding and Establishing National Innovation for U.S. Stablecoins) attracted global attention. This bill not only demonstrated the United States' ambition in the field of stablecoin regulation, but also pointed out the direction for the fintech industry with its practical clauses. From the perspective of a former senior executive of the China Securities Regulatory Commission, this article will deeply analyze the five highlights of the bill, revealing how it balances innovation and regulation and promotes national financial innovation.
Highlight 1: Clearly define payment stablecoins and clarify regulatory boundaries
The bill begins by defining stablecoins as "payment stablecoins" and effectively distinguishing them from asset classes such as commodities and securities. This precise classification not only avoids regulatory overlap, but also establishes the characteristics of stablecoins with a net value of 1 and no interest. This clear legal positioning lays a solid foundation for subsequent supervision and market operations, ensuring that stablecoins focus on payment functions and avoid regulatory risks of complex financial derivatives.
Highlight 2: Granting issuers the right to freeze, seize and destroy, and strengthening compliance capabilities
The bill grants stablecoin issuers the right to freeze, seize and burn stablecoins, and makes it a prerequisite for obtaining a license. This provision is of great significance in practice, especially when dealing with cases such as fraud and money laundering, issuers can take prompt action to protect the interests of victims. The clause clarifies the legal responsibilities and capabilities of issuers, enhances the compliance and credibility of the stablecoin ecosystem, and provides investors and users with a safer trading environment.
Highlight 3: Focus on centralized institutions and be compatible with the spirit of decentralization
When selling stablecoins to Americans, the bill excludes decentralized finance (DeFi) practitioners from the scope of regulation and only manages centralized venues such as exchanges and custodians. This design is highly consistent with the spirit of the United States in supporting decentralized finance. It not only avoids excessive constraints on DeFi innovation, but also ensures a balance between market order and consumer protection through strict supervision of centralized institutions.
Highlight 4: Reciprocal arrangements and open international cooperation
The bill introduces reciprocal arrangements, allowing stablecoins (such as Tether) that have not obtained issuance licenses in the United States to enter the U.S. market through compliant paths after obtaining corresponding licenses in other countries or regions. This flexible mechanism reflects the United States' open attitude towards the global stablecoin market, promotes international regulatory cooperation, and provides overseas issuers with opportunities to enter the U.S. market, enhancing the interconnection of the global financial system.
Highlight 5: Exemption of individual peer-to-peer behavior and encouragement of free use
The bill explicitly excludes individual peer-to-peer (P2P) use of stablecoins from regulation, eliminating previous market concerns about the legality of individual use of stablecoins. This provision encourages individuals to freely use stablecoins in daily transactions, lowers the threshold for use, promotes the popularization of stablecoins in retail payment scenarios, and avoids excessive intervention in individual behavior, reflecting the inclusiveness of regulation.
From a regulatory perspective, the Genius Act was drafted by a team of experts who are well versed in practical operations, with complete clauses and rigorous logic, taking into account the innovative potential and regulatory needs of stablecoins. Its full name, "Stablecoin National Innovation Act", demonstrates the strategic ambition of the United States to promote national innovation in financial technology by using stablecoins as a starting point. This bill not only provides a clear compliance path for the stablecoin industry, but also sets a benchmark for global financial technology regulation, which is highly anticipated by the industry.
How will the implementation of the US "Genius Act" reshape the stablecoin ecosystem? Let us wait and see!