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

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.