Regulatory Dilemmas

The 《GENIUS Act》 initially aimed to set stablecoins as interest-free cash substitutes, distancing them from banking system risks—sounds logical. But reality is harsh: once USD stablecoins are forcibly reduced to zero yield, capital simply won't cooperate. The likely outcome is the market naturally shifting toward offshore USD or even embracing digital renminbi as alternatives.

Galaxy Digital's head Mike Novogratz bluntly criticized banks as "crying like elementary school students," and his point hits harder: instead of hiding under regulatory umbrellas, it's better to rely on genuine competitiveness.

Underlying Political Currents

While the Trump administration generally maintained a business-friendly environment, let's not forget—banks remain the Republican Party's main financial backers. With midterm elections approaching, any reform bills could be repeatedly influenced by electoral interests. Hedge fund legend Ray Dalio has long warned that political volatility in 2026 will be intense; if the digital dollar strategy wavers, it could mark the beginning of the decline of dollar hegemony.

This battle over interest rates is essentially about paving the way for coachmen and trying to slow down the arrival of automobiles. If Washington chooses to protect banking interests at the expense of stablecoin flexibility, historians might mark 2026 as the starting point of the decline of the USD digital advantage. What is truly needed is not the "Genius" in the bill's name, but real financial wisdom—solid gold that can crack the knot of national destiny.