In-depth analysis of the U.S. stablecoin bill, the storm is coming.

Author: Zhang Haisheng

In recent weeks, the United States has made frequent moves on stablecoin legislation, intensively introduced relevant policies, and has shown an accelerated trend, the drumbeat is getting more and more urgent, and there is a trend of mountains and rains about to fill the building, the most symbolic of which is the newly released "STABLE Act ( ) draft of the Stablecoin Transparency and Accountability to Promote a Better Ledger Economy Act. The draft was drafted in December 2020 by three Democrats on the U.S. House Financial Services Committee, Tlaib, García, and Lynch, and was subsequently shelved by the Democratic administration until March 26, 2025. It is expected that this bill will work together with the Stable Genius Act, another bill on stablecoins, to shape the stable and regulatory framework of the United States. Therefore, it is particularly worth interpreting.

Because of the pivotal position of stablecoins in the digital financial system, every move of the United States on this topic is eye-catching. What is the real motivation of the U.S. government to promote stability and legislation at this time? Is it to limit the lawlessness of stablecoins, or to "weaponize" the dollar stablecoins?What does the legalization of stablecoins mean for the digital asset industry? What kind of opportunities will it open? The draft of STABLEAct provides us with an excellent look at the US stablecoin regulatory thinking. In this article, we'll take a closer look at the core of the draft and the reasons behind it, explore its far-reaching implications for the U.S. and global digital asset industry, and build confidence and direction for Web3 practitioners to help position themselves in this transformation.

1. What does the draft say?

This draft consists of 72 pages and contains several thousand words, written entirely in the specialized style of American legislative documents, including lengthy and unimportant sections. To spare everyone the trouble of reading it, I have carefully read through the entire text and summarized the most important points.

First, the draft defines what a stablecoin is. Stablecoins are pegged to national fiat currencies and serve as a means of payment and settlement, rather than as securities or deposits. At the same time, the draft stipulates that issuers must allow redemption in fiat currency, which effectively certifies the legal status of stablecoins as a payment tool.

Secondly, the draft specifies who can issue stablecoins. It is well-known that today in the crypto space, anyone can issue stablecoins, but this freedom may be a thing of the past. The draft suggests that only compliant stablecoin issuers, including subsidiaries of insured deposit institutions, federally qualified non-bank issuers, or state-qualified issuers, may issue stablecoins in the United States.

At the same time, the draft also specifies the detailed requirements for issuance. The draft stipulates that issuers must hold at least a 1:1 reserve of assets, including US dollars, demand deposits, short-term government bonds, repurchase agreements, and money market fund securities, and it also requires issuers to regularly disclose the status of reserves and redemptions.

Finally, the draft also mentioned what actions are prohibited. Firstly, the bill stipulates a ban on the issuance of algorithmic stablecoins for two years after its enactment, and even in the long term, the possibility of approval is low. Then, unlicensed institutions are not allowed to issue stablecoins within the United States. Furthermore, issuing institutions are not allowed to pay interest or returns to stablecoin holders.

In summary, the core objective of the draft is to clarify the legal status of stablecoins, enhance consumer protection, and improve market transparency, thereby perpetuating the influence and dominance of the US dollar in the global financial system through stablecoins.

II. Why is the Stablecoin Regulation Bill being introduced at this time?

The core content of this draft does not exceed industry expectations; it merely formalizes the rules anticipated by the market into law. So the question arises: since there has been a consensus, why does the United States need to legislate specifically? Consider this timing; it is indeed intriguing. Why has the U.S. chosen to formally push this legislation at this moment? Is it merely a demand for financial regulation, or is it paving a compliant path for the Web3 industry? Is it a global game for the digital dollar, or is a more profound global currency war about to unfold? Next, I will explore this with my understanding.

Clarify the status of the US dollar stablecoin and accelerate the digital asset industry into the fast lane.

For a long time, the legal status of stablecoins has been uncertain, which has made traditional financial institutions and large institutional investors hesitant to venture into this space. However, with recent legislation clarifying the legality of stablecoins, this policy uncertainty has been effectively eliminated, providing financial institutions with peace of mind and paving the way for their entry.

In this context, a large number of banks, payment institutions, and large investment funds will be more proactive in issuing and using compliant stablecoins, bringing new development momentum to the Web3 industry. This not only promotes the integration of traditional finance with Web3 but also accelerates the advancement and innovation of the digital financial system.

In this way, the Web3 industry will usher in a wave of capital inflow, and compliant stablecoins will undoubtedly become the core infrastructure of the digital economy. This will drive the gradual adoption of compliant stablecoin-based payments, settlements, and cross-border transactions as the mainstream payment methods in the digital economy, while also greatly promoting the vigorous development of areas such as DeFi and RWA, and may even lead them toward the mainstream financial market.

Therefore, the goal of the United States in promoting the compliance of stablecoins is to facilitate the smoother flow of global capital into the Web3 world, thereby driving the rapid development of digital assets and helping the entire industry to swiftly move towards a more mature future.

The hedging of the trade war against the weakening of the dollar's status provides a new channel for the global public to "invest in America."

In recent years, the trend of de-dollarization has gradually emerged in some countries, with many economies attempting to reduce their reliance on the US dollar in international trade. However, in stark contrast, the dollar has quietly risen as a stable emerging tool for cross-border payments and international settlements, presenting a fascinating situation. If the United States can seize this trend and actively promote the development of the dollar stablecoin, it is likely to become an important means to hedge against the decline of the dollar's international status. Conversely, if regulation lags, support is weak, or even allows other countries' currencies to dominate the digital stablecoin field, global funds may further distance themselves from the dollar system, weakening the dollar's international influence.

To address this challenge, the United States has legalized the US dollar stablecoin through legislation. The legalized US dollar stablecoin continues to serve as an important tool for global payments, trade, and investment. At the same time, because it has been incorporated into the regulatory framework, the United States can control the flow of global digital funds and, when necessary, can even use it as a weapon in financial warfare.

At the same time, compliant US dollar stablecoins provide an important legitimate channel for other assets to flow into the United States. This means that people in various countries can use US dollar stablecoins to avoid the risk of depreciation of their national currencies and invest in US dollar assets more conveniently. As funds can bypass domestic currency controls and flow directly into US dollar asset pools, global capital is further "dollarized" in an invisible way. From this trend, it is certain that compliant US dollar stablecoins will evolve into a "global digital dollar" in the future.

In summary, the US dollar stablecoin is not only an important component of Web3 but also a strategic asset for the United States in the global currency competition. By strengthening regulation and utilizing the global flow of digital assets, the US has further consolidated the dollar's dominant position in payments, trade, and investment. As the latest financial tool for maintaining dollar hegemony, the US dollar stablecoin plays a significant role globally, enhancing America's control over financial markets and serving as the latest financial weapon to combat and curb competitors, solidifying the dollar's dominant position.

Activate innovations in the DeFi and RWA fields

As a legal representation of fiat currency in the Web3 world, stablecoins are not just payment tools, but core circulating assets in the RWA field. The introduction of this draft means that stablecoins will circulate on a larger scale, thereby promoting the deep integration of digital assets with real-world assets. The application of stablecoins will cover DeFi, payments, cross-border settlements, and RWA, helping businesses and individuals conduct global transactions more conveniently, thus disrupting traditional fiat payment methods.

With the implementation of stablecoin regulatory policies, institutional funds will be more confident in entering the digital asset space, especially in the expression and circulation of physical assets on-chain. Global asset tokenization has become simpler, allowing companies to directly issue on-chain bonds, real estate tokens, etc., thus enabling global investors to directly participate in high-quality asset investments in places like the United States.

More importantly, the United States attracts global investors into its digital asset ecosystem through the regulation of stablecoins, thereby creating a capital siphoning effect. With the compliance of stablecoins, the U.S. provides a safer and more transparent investment channel for global investors, attracting a significant influx of capital. This not only injects new vitality into the U.S. digital asset market but also promotes the globalization and digitization of the U.S. economy through the widespread use of stablecoins. Ultimately, global investors indirectly support the stability and development of the U.S. economy through the trading, investment, and asset allocation of stablecoins, solidifying the U.S. as the center of global capital flow.

Strengthen control, the compliant development of USD stablecoins, aligned with U.S. interests.

A core objective of the draft is to ensure that the development of stablecoins does not pose a threat to the financial security of the United States. It emphasizes the need to prevent unlicensed stablecoins from disrupting financial markets and to ensure that the stablecoin system is firmly under the control of compliant institutions and the government. Unlicensed stablecoins may introduce liquidity risks; therefore, the draft ensures that stablecoins do not threaten the banking system through strict issuance conditions.

According to the draft regulations, stablecoin issuers must obtain a license and comply with strict capital reserve requirements. This regulation draws on the model of the traditional banking system and continues the core spirit of historical regulations such as the Glass-Steagall Act of 1933, aiming to ensure the safety of user funds, asset segregation, and transparency, thereby enhancing consumer protection.

Through this draft, the United States will not only be able to effectively regulate its own stablecoin market, but also indirectly control the US dollar stablecoin in circulation around the world. This will help ensure that global capital remains revolving around the dollar system and provide greater control over global dollar flows.

The launch of this draft indicates that this is not just a simple financial regulation, but the beginning of a whole new currency war. The goal of the United States in the digital age is not only to maintain the hegemony of the US dollar but also to attract global capital to the US through stablecoins, ultimately dominating the new generation of the global financial system.

3. The Impact on the Digital Asset Industry

Stablecoin payments not only constitute the infrastructure of the digital asset industry but also serve as a central link in its policies, playing a role that affects the entire industry with a single pull. From capital inflows, industry compliance, RWA on-chain to innovative development, the compliance of stablecoins has far-reaching impacts, driving the continuous maturation of the digital asset industry.

First of all, the compliance of stablecoin payments has attracted a large number of institutional investors to the digital asset industry. With the gradual clarification of relevant regulations, the entry of traditional financial institutions and large funds has become smoother. Compliant stablecoins enable more fiat currencies to be smoothly converted into digital assets, further enhancing market liquidity and laying the foundation for widespread development in emerging areas such as Web3 and DeFi. As a result, stablecoins have become an important part of the Web3 infrastructure, injecting new life into the industry.

Secondly, the compliance of stablecoins has facilitated the maturity and standardization of the digital asset industry. As the regulatory framework has gradually been established, market transparency has significantly improved, and disorderly competition and potential market risks have been effectively curbed. Clear compliance requirements not only reduce the risks of illegal activities such as money laundering but also ensure the regularity of capital flows, thereby laying a solid foundation for the long-term healthy development of the industry.

In addition, the compliance of stablecoins provides a reliable payment tool and circulation carrier for the on-chain of RWA. According to BCG's predictions, the RWA market is expected to reach a scale of $16 trillion. With the popularization of compliant stablecoins, this market will welcome innovative opportunities, promoting the digitalization of assets on-chain and the development of global investment flows, further driving the globalization and cross-border integration of the digital asset industry.

However, the compliance of stablecoins also brings some challenges. Higher compliance requirements may increase operational costs for small stablecoin issuers, limiting entry for some emerging enterprises. In addition, strict compliance thresholds may lead to market centralization, thereby suppressing market competition and potentially slowing the pace of innovation. Therefore, balancing compliance with market vitality has become an important issue for the development of the industry.

Overall, the compliance of stablecoins provides a clear regulatory framework for the digital asset industry, promoting market maturity and innovation. With the widespread adoption of compliant stablecoins, capital liquidity and market participation will significantly increase, and emerging fields such as DeFi and RWA will usher in a more prosperous development outlook. In the future digital asset industry, the balance between compliance and innovation will be the key to continuously driving industry progress.

How other global markets respond

The compliance of stablecoins is not only a product of demand in the US market, but it is also driving a profound restructuring of the global financial system. As different countries adopt varying policy directions, the development of global digital assets will be greatly affected. Different countries have different attitudes towards stablecoins based on their respective financial environments, policy needs, and market challenges. The following are the main market responses to the legalization of stablecoins:

European market. The EU's actions in stablecoin regulation are reflected in the introduction of the MiCA bill. This bill is expected to align the regulation of stablecoins with the policies of the United States, promoting the formation of a global compliance framework for stablecoin payments. The implementation of the MiCA bill will not only regulate the operational rules of the stablecoin market but also provide stable policy support for the development of Web3. The EU's regulatory framework will echo the U.S. stablecoin policy, providing higher interoperability for cross-border payments and paving the way for the legitimate circulation of digital assets.

Asian market. The Asian market has shown a positive attitude in the process of stablecoin compliance. Regulators in regions such as Singapore, Hong Kong, and Japan have begun to gradually move forward with the legalization of stablecoins. The Monetary Authority of Singapore (MAS) has developed a comprehensive policy framework (MAS) this area, while Hong Kong and Japan are also undergoing legislative and policy explorations. With the gradual advancement of U.S. policies, Asian countries may refer to the U.S. regulatory framework for stablecoins to enhance market stability and address cross-border risks. Especially in the competition in the field of fintech and digital assets, the Asian region must align with international standards to avoid falling behind in the global financial revolution.

Other developing countries. Some developing countries hold a conservative attitude towards the legalization of USD stablecoins, fearing that it will affect their monetary sovereignty and the independence of their national monetary policies. These countries are concerned that the proliferation of USD stablecoins may lead to a decrease in the circulation of their national currencies, and even impact the formulation of monetary policy by central banks. However, as the United States takes the lead in promoting stablecoin compliance, more developing countries may gradually adopt the American model. Especially in the trend of globalization of digital currencies, these countries may find that issuing their own stablecoins or developing stablecoins based on the American model helps modernize their national digital currency systems and attract more international investment. Meanwhile, these countries will face the challenge of balancing monetary sovereignty with integration into the global financial system.

Globalization trends and future outlook. With the leading role of the United States in the compliance process of stablecoins, policies in various countries around the world will gradually align, thereby promoting the unification of the global stablecoin payment system. The compliance of stablecoins not only provides a stable payment infrastructure for the development of Web3 and DeFi but also has a profound impact on the global financial system. Cross-border payments will become more convenient, and the efficiency of global capital flows will be significantly improved, which will provide more innovative financing channels and payment solutions for the global economy.

However, the legalization of stablecoins and the reconstruction of the global financial system are accompanied by a series of challenges. There will be differences in regulatory standards and compliance requirements among countries, and how to achieve coordination and mutual recognition of policies globally remains a complex task. The economic structures, financial needs, and policy positions of different countries may lead to different implementation effects and speeds of the compliance process for stablecoins in different regions.

Four, Future Outlook

With the advancement of stablecoin compliance and the rapid development of the Web3 ecosystem, the digital asset industry is entering a brand new phase. In the future, with the influx of substantial institutional capital, the industry will not only encounter unprecedented opportunities but will also face deeper transformations. We will witness a new landscape of capital explosion and market reconstruction. Below are several key trend outlooks for future development:

Tech giants are crowding into the market, and RWA is ushering in a capital explosion moment. Once the regulatory framework for stablecoins is established, it is foreseeable that traditional financial institutions will bring in a large amount of capital to enter the stablecoin and RWA markets. This will mark the transition of the digital asset industry from wild growth to a compliant development stage, and it also means that Web3 will enter a period of large-scale application, with the digital asset industry welcoming a new development cycle.

Stablecoin payments are set to replace inefficient and high-cost traditional payment methods. With the further development of stablecoins and DeFi technology, cross-border payments will experience a revolutionary breakthrough. The costs of cross-border payments, clearing, and settlement with stablecoins will be significantly reduced, and efficiency will be greatly improved, making cross-border payments more convenient. For traditional payment networks like SWIFT and VISA, stablecoin payment methods will pose a disruptive challenge.

RWA triggers a massive migration of assets. Trillions of global physical assets will be resurrected on the blockchain, real-world assets will flood into the crypto world through RWAs, and the speed of capital flows will reach unprecedented levels. This is a global financial restructuring driven by digital assets, a Normandy landing that will subvert the traditional financial system. We must be prepared for this tide of wealth.

The digital dollar hegemony is emerging, and the digital currency war may end before it even begins. While the world is still discussing the potential of digital currencies, the United States has quietly completed financial colonization through stablecoins as a financial weapon. By legislating to subtly implant dollar hegemony into blockchain, the U.S. has provided a digital weapon for its financial system, and every transaction on the chain is contributing to the strengthening of the dollar empire. This is not a prediction, but a fact that is happening; the digital hegemony of the dollar is rapidly devouring the global financial ecosystem, and the outcome of the new round of currency war has already been predetermined.

Unknowingly, the future has arrived. As practitioners of Web3, we must maintain clear thinking and ample knowledge reserves to embrace this unprecedented transformation.

V. Conclusion

The advancement of stablecoin legislation in the United States will become a core driving force for the development of the digital asset industry. The legalization of stablecoins will attract a large number of financial institutions and capital, providing strong support for the Web3 industry and promoting prosperity in areas such as payments, DeFi, and RWA.

As the legitimate representation of fiat currency in the Web3 world, the US dollar stablecoin will continue to dominate the market. The compliance of stablecoins will promote cross-border payments and global capital flows, disrupt traditional fiat payment methods, and profoundly change the global financial landscape, further consolidating the US dollar's dominant position in the global financial system.

This stable and revolutionary change is not only an innovation in financial technology but also a reshaping of the global monetary system and economic order. Led by the United States, the widespread use of compliant stablecoins will drive the transformation of traditional fiat payment methods, initiating a new round of currency wars and consolidating the hegemonic position of the US dollar in the global financial system through the form of stablecoins.