The GENIUS bill is becoming an on-chain revolution and a key driver of dollar hegemony.

U.S. Treasury Secretary Scott Bessent pointed out in a post on social platform X on July 20 that blockchain technology is becoming the core driving force of the next generation payment system.

Bessent stated that the passage of the GENIUS Act, propelled by the Trump administration's working group, will accelerate the digitization of the dollar and reinforce its dominant position as the global reserve currency for generations to come.

His viewpoint forms a policy synergy with the "GENIUS Act" mentioned by Deputy Treasury Secretary Michael Faulkender, which provides "faster, cheaper, and safer on-chain dollar transactions," aiming to enhance the global competitiveness of digital dollar payments and consolidate the leadership position of the U.S. as a cryptocurrency hub.

At the same time, Circle's Chief Strategy Officer Dante Disparte revealed the little-known antitrust design of the GENIUS Act. The Act requires non-bank institutions to establish an entity structure independent of their parent company when issuing USD stablecoins.

At the same time, this independent entity must meet the following requirements: its operations must be completely independent of the parent company, its balance sheet must strictly adhere to the principles of "no loans, no risk, no leverage," and it must accept the final approval authority of the Treasury Committee.

It is noteworthy that this structural design is more prudent than the deposit token model proposed by traditional financial institutions like JPMorgan. Disparte pointed out that this framework not only creates a fairer market competition environment but will ultimately benefit both American consumers and the international status of the dollar.

In summary, the "GENIUS Act" not only injects strong momentum into the digitalization process of the dollar but also brings new variables to the global cryptocurrency asset market. By empowering the payment system with on-chain technology, the act aims to solidify the global dominance of the dollar while creating a fairer competitive environment for market participants through antitrust design.

As the details of the bill gradually take shape, the chain reaction it triggers may reshape the global digital currency competition landscape, and whether the US dollar can consolidate its dominant position in the digital age still needs to be tested by the market and time.

Finally, what do you think about the restrictive provisions of the "GENIUS Act" on non-bank institutions? Is it protecting the healthy development of the industry or is it an overregulation?

#GENIUS法案 # US Dollar stablecoin #on-chain finance