According to DL News, the "Genius Act" passed by the U.S. Senate is drawing attention from the banking and legal sectors. The bill grants stablecoin holders priority claim to their backing assets in the event of bankruptcy, potentially putting traditional banks and other customers at risk. [Foresight News]

On July 12, according to DL News, the "Genius Act" passed by the U.S. Senate is attracting attention from the banking and legal sectors. The bill grants stablecoin holders priority claim to their supporting assets in the event of bankruptcy, which may put traditional banks and other customers at risk. Georgetown University law professor Adam Levitin warned that this arrangement is essentially "subsidizing stablecoin issuance at the expense of bank deposits," which could harm the interests of ordinary bank customers, especially when a stablecoin issuer or its custodian bank goes bankrupt. The current version of the bill stipulates that stablecoins must be backed by highly liquid assets such as U.S. Treasury bonds, issuers must disclose reserves monthly, and they must have the ability to freeze tokens. If passed, banks and other entities will be able to issue compliant stablecoins. The bill is currently awaiting review by the U.S. House of Representatives. While intended to enhance user confidence and strengthen the connection between stablecoins and the real financial system, its bankruptcy handling priority design has also sparked discussions about regulatory logic, financial stability, and potential inter-bank interest allocation. Some industry insiders say that the bill may be a turning point in the development of stablecoins, while also exacerbating concerns about the impact on the traditional financial system. [BlockBeats]

Opinion: Genius Act Guarantees Stablecoin Holder Priority, Bank of America May "Pay the Bill" for This

July 12th, according to DL News, the U.S. Senate's passage of the Genius Act is attracting attention from the banking and legal sectors. The bill, which grants stablecoin holders priority claim to their reserve assets in the event of bankruptcy, could pose risks to traditional banks and other customers. Georgetown Law professor Adam Levitin warned that this arrangement is essentially "subsidizing stablecoin issuance at the expense of bank deposits," which could harm the interests of ordinary bank customers, especially when the stablecoin issuer or its custodial bank goes bankrupt. The current version of the bill stipulates that stablecoins must be backed by highly liquid assets (such as U.S. Treasury bonds), the issuer must disclose reserve status monthly, and have the ability to freeze tokens. If passed, banks and other entities will be able to issue compliant stablecoins. The bill is currently awaiting review by the U.S. House of Representatives. While aimed at enhancing user confidence and strengthening the integration of stablecoins with the traditional financial system, the design of its bankruptcy priority has also sparked discussions on regulatory logic, financial stability, and potential bank interest allocation. Some industry insiders have expressed that the bill could be a turning point for stablecoin development, while also exacerbating concerns about the impact on the traditional financial system.[BlockBeats]

Opinion: Genius Act Safeguards Stablecoin Holders' Priority, U.S. Banks May Foot the Bill

The "Genius Act" passed by the U.S. Senate grants stablecoin holders priority claim to their underlying assets in the event of issuer bankruptcy, drawing attention from the banking and legal sectors. Georgetown University law professor Adam Levitin pointed out that this mechanism could lead to "subsidizing stablecoin issuance at the expense of bank deposits," harming the interests of traditional bank customers, especially in the event of issuer or custodian bank bankruptcy.
The bill also stipulates that stablecoins must be backed by highly liquid assets, such as U.S. Treasury bonds, and that issuers must disclose reserve information monthly and have the ability to freeze tokens. If passed, banks and other entities will be able to legally issue compliant stablecoins.
Industry insiders believe that although the bill is intended to boost user confidence and strengthen the integration of stablecoins with traditional finance, the "bankruptcy priority" arrangement may disrupt the original risk structure of the financial system and become an important turning point in the development and regulatory coordination of stablecoins. (DL News) [Odaily Planet Daily]

Genius Act Grants Stablecoin Holders Bankruptcy Priority, May Exacerbate Risks in the Banking System

On July 12 (UTC+8), DL News reported that the "Genius Act" passed by the U.S. Senate is attracting attention from the financial and legal sectors. The bill grants stablecoin holders priority claim to their supporting assets in the event of bankruptcy, which is considered to potentially have an adverse impact on traditional bank customers. Georgetown University law professor Adam Levitin pointed out that such arrangements are essentially "subsidizing stablecoin issuance at the expense of bank deposits," especially when stablecoin issuers or their custodian banks go bankrupt, which may erode the rights of ordinary depositors. The current draft bill requires stablecoins to be backed by highly liquid assets (such as U.S. Treasury bonds), issuers to disclose reserves monthly, and to have the ability to freeze tokens. If passed, banks and other institutions will be able to issue compliant stablecoins. Although the bill is intended to increase user confidence and strengthen the connection between stablecoins and the real-world financial system, its bankruptcy priority arrangement has also sparked discussions on regulatory logic and financial stability. Some analysts believe that the bill may become a key node in the development of stablecoins, while exacerbating the structural impact on the traditional financial system. (Source: Bitpush) [MetaEra]

Opinion: Genius Act Grants Stablecoin Holders Bankruptcy Priority, May Exacerbate Risks to Banking System

据DL News报道，美国参议院通过的“Genius Act”正引起银行和法律界的关注。该法案规定，稳定币持有者在破产时对其支持资产享有优先索赔权，这可能会使传统银行及其其他客户面临风险。[Foresight News]

观点：Genius Act保障了Stablecoin持有者的优先权，Bank of America可能会为此“买单”

據DL News報道，美國參議院通過的“Genius Act”正引起銀行和法律界的關注。該法案規定，穩定幣持有者在破產時對其支持資產享有優先索賠權，這可能會使傳統銀行及其其他客戶面臨風險。[Foresight News]