GENIUS Act Passed: Stablecoins Officially Enter Mainstream Financial System

Recently, the U.S. House of Representatives passed three bills related to cryptocurrency, among which the "GENIUS Act" is expected to become formal law soon. This marks the first time the U.S. has established a national regulatory framework for stablecoins, signaling that stablecoins are moving out of the gray area and gradually entering the mainstream financial system. At the same time, other global financial centers are also accelerating their pace, and the global stablecoin landscape is undergoing a reshaping.

In the past few months, stablecoins have rapidly transformed from objects of regulatory scrutiny to officially recognized new infrastructure. This shift is not coincidental but rather a structural turn driven by policy forces. In particular, the shift in U.S. policy has played an important role in this.

An important political figure has consistently opposed central bank digital currencies (CBDCs) and supports a market-driven digital dollar approach. This series of signals has directly prompted global regulators to re-examine stablecoins. Within just a few months, stablecoins have jumped from a marginal topic in the cryptocurrency space to a focal point of discussion at the national strategic level. Major global economies are increasingly considering and accelerating the establishment of clear compliance frameworks for stablecoins.

The passage of the GENIUS Act is not only a loosening of regulations on stablecoins by the United States but also a clear choice for the digital dollar route—abandoning Central Bank Digital Currency (CBDC) and supporting compliant, privately issued dollar stablecoins. This statement may serve as a reference paradigm for regulatory designs in other countries, promoting the inclusion of stablecoins in the universal discussion framework of global financial policy.

In the stablecoin market landscape, the past few years have been dominated by two major players, representing the paths of "circulation efficiency" and "compliance transparency" respectively. From an overall scale perspective, stablecoins have continued to grow since 2025. As of July 18, the total market capitalization of stablecoins across the network is approximately $262 billion, an increase of over 20% compared to the beginning of the year.

This indicates that during the recovery of the cryptocurrency market, stablecoins remain the most essential "liquidity entry point." The combined market share of the two giants is nearly 90%, and the duopoly pattern remains solid.

Starting in 2024, an increasing number of Web2 financial enterprises and traditional capital forces are entering the market, using stablecoins to build on-chain settlement tools. These emerging stablecoin projects are driving the function of stablecoins to evolve from "Web3 liquidity tools" into a value bridge connecting Web3 and the real economic system. Their use cases are also gradually penetrating into diverse applications such as supply chain finance, cross-border trade, freelancer settlements, and OTC scenarios, moving beyond exchanges and wallets.

However, although the GENIUS Act has granted stablecoins institutional recognition, it has also brought about more compliance requirements, setting clearer regulatory boundaries for their development. This means that stablecoins have gained a legal identity but have also officially stepped into the "regulated currency role."

Whether stablecoins can break through the application limitations of Web3 is key to achieving incremental landing. The greatest growth potential of stablecoins lies not within the Crypto internal circle, but in the broader Web2 and the global real economy.

The true killer application of stablecoins is not the "next DeFi protocol," but rather the "replacement of traditional dollar accounts." Once stablecoins become the fundamental vehicle for digital dollars globally, they will inevitably impact sensitive nerves such as monetary sovereignty, financial sanctions, and geopolitical order.

Therefore, the next phase of stablecoin growth is bound to be closely related to the new landscape of the dollar's globalization and will also become a new battleground among governments, international institutions, and financial giants.

The essence of currency issuance has always been an extension of power, relying not only on asset reserves and clearing efficiency but also on national credit, regulatory approval, and international standing. If stablecoins want to genuinely penetrate the real economic system from the Crypto world, relying solely on market mechanisms or business logic will ultimately be insufficient. The compliance support brought by the global policy shift in 2025 is certainly an important driving force for stablecoins to move towards the mainstream, but it also means that they must survive in a more complex game.

This is a long-term game, and we are at the stage where it truly begins.