U.S. federal regulators are preparing to formally propose stablecoin regulatory rules. According to the latest public hearing information, Acting Chair of the Federal Deposit Insurance Corporation (FDIC) Travis Hill has submitted testimony to Congress, declaring that the stablecoin framework will release a draft by the end of this month.
This is the most concrete policy progress since the launch of the GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins) in Congress.
The core direction of the GENIUS Act is not to ban or restrict, but to:
> The stablecoin will be officially incorporated into the U.S. financial regulatory system.
And the importance of this change far exceeds the superficial conclusion that 'stablecoins can operate legally.'
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The U.S. is preparing to establish a 'publicly viewable stablecoin system' for the first time
During the hearing process, the FDIC clearly stated that it would be responsible for formulating:
• Capital requirements for regulated banks issuing stablecoins
• Liquidity standards
• Reserve allocation quality regulation
• Issuer application processes and review systems
At the same time, all drafts must undergo public consultation and only be formally implemented after feedback is completed.
This reflects two things:
① Stablecoin regulation will move towards transparency and institutionalization
② No longer decided by a single regulatory body, but rather jointly advanced by federal departments
The GENIUS Act explicitly mentions that at least two types of regulators will participate:
• Federal level
• State level
Including key financial institutions such as the FDIC and the Treasury.
In other words, the U.S. is beginning to view stablecoins as 'financial instruments with systemic impact' that must be regulated with bank-like structures.
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U.S. regulation is focusing on two important assets: Stablecoins and Tokenized Deposits
The FDIC specifically disclosed another development in its testimony:
> Drafting regulatory guidelines for 'tokenized deposits'.
This is an easily overlooked but highly impactful message.
Currently, the most discussed stablecoins in the cryptocurrency industry are USDT, USDC, or those backed by bank and government bonds, but the concept represented by 'tokenized deposits' is closer to:
Directly mapping dollars in bank accounts to on-chain.
If this regulation is implemented, the market may see:
• Banks directly issuing on-chain dollars
• Bank accounts become transferable and liquid on-chain assets
• Web3 connecting with traditional banking infrastructure
In the past, such discussions were more concept-oriented, but FDIC testimony indicates that this is no longer just research, but is moving towards policy and standard levels.
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The shift in regulatory attitude: from 'blocking' to 'establishing a framework'
Over the past two years, the core themes of U.S. financial hearings have usually focused on:
• Combat illegal funds
• Corresponding risks
• Protecting consumers
• Damages caused by the bankruptcy of cryptocurrency companies
However, the recent tone has clearly shifted to a regulatory framework:
• How to allocate reserves
• How to ensure settlement
• How to avoid decoupling
• How to pass FDIC regulation
• How to ensure transparency on the chain
This means that the policy issue has shifted from 'whether to regulate' to 'how to regulate'.
This is why the GENIUS Act is seen as a turning point.
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If stablecoins are institutionalized, the most direct change will be in funding and usage scenarios
Stablecoins are the underlying tools for on-chain transactions and financial applications:
DeFi, payments, cross-chain settlements, RWA, exchanges' liquidity operation……
All rely on stablecoins as the core settlement medium.
Once formally included in the regulatory system, several significant changes may occur in the market:
① Compliance funds entering the market
Banks, payment companies, funds, and financial institutions can legally touch stablecoins
② Stablecoins can be issued in a systematic way within the U.S.
No longer relying on overseas registration
③ Transparency requirements will force reserves and endorsements to be more rigorous
Gray areas gradually disappearing
④ Stablecoins will resemble a 'regulated dollar payment system'
And can be integrated into the existing financial system
For Web3, this is the first time cryptocurrency is recognized as a 'financial architecture layer', rather than just a speculative tool.
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The most affected will be the dollar stablecoins with U.S. reserve characteristics
The scope of the GENIUS Act focuses on:
• Collaborating with banks
• Can pass reserve audits
• Can be regulated by the FDIC
• Aligning with the U.S. financial system
This gives stablecoins with high transparency and high reserve ratios a greater institutional advantage.
At the same time, the U.S. may construct a set of:
"On-chain USD standard"
And extend from there:
Payments, settlements, cross-border capital flows, trade finance
Even subsequent layers of financial derivatives.
If the GENIUS Act is completed from draft to implementation, it could very well be the world's first stablecoin system established by national-level regulation that is quantifiable and verifiable.
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Market implications under long-term structural changes
This policy is not just about making cryptocurrency 'legitimate'.
It symbolizes:
> Web3 is being treated as financial infrastructure rather than an investment product.
A consistent trend can be seen from recent events:
• Governments researching RWA
• Regulations are beginning to show institutional prototypes
• Banks and payment institutions engage with public chain infrastructure
• The U.S. bank is discussing tokenized deposits
These behaviors reveal a common core:
"Cryptocurrency is not being eliminated, but absorbed by the system."
In other words, after two years of policy turmoil, the regulatory framework has not moved towards closure, but rather towards integration.
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Trends interpretation under institutional transition
The regulatory direction represented by the GENIUS Act is not just a theme for short-term price movements in the cryptocurrency market, but rather:
A gateway for traditional financial institutions, medium to long-term capital, and government-level adoption.
Regulation will inevitably bring limitations, norms, and costs, but it will also bring:
• Legal channels
• Institutional endorsements
• Investment protection
• Transparency requirements
• Institutional-level funds
Over the past decade, the cryptocurrency market has relied on emotions, narratives, and speculative rotations for growth; in the next decade, cryptocurrency is more likely to mature based on infrastructure, systems, and policies.
And the GENIUS Act may be that new dividing line.
