Explosive!! Breaking news!! The US stablecoin bill Genius has officially passed!! Are algorithmic stablecoins making a comeback??

The core issue of RWA is about to be solved! I announce that the era of RWA explosion has officially begun!!

Why is the stablecoin bill crucial for the RWA sector??

Friends who have had in-depth conversations with me often hear me express a viewpoint:

— Stablecoin and RWA are a twin relationship.

For RWA to develop, stablecoins must develop, and stablecoins need to expand their reach to Web2; a regulatory framework bill must be in place.

Now let me explain in detail the importance of the stablecoin legislation:

1. Stablecoin is the infrastructure of RWA

First of all, stablecoins themselves are the most successful RWA applications! USDC, USDT, and others are products that tokenize the US dollar, which is a "real-world asset."

We know that the core of RWA lies in compliance, so the stablecoin bill essentially clarifies the legal status of stablecoins, which are the most fundamental RWA, laying a legal foundation for the entire RWA sector.

2. Compliance channel opened

The bill establishes clear registration and regulatory mechanisms, which means:

- Traditional financial institutions can compliantly tokenize assets.
- A clear legal bridge has been established between the on-chain and off-chain worlds.
- Large institutions can enter with confidence, bringing more quality assets.
- Web2 users can fully comply with the exchange of fiat currency for stablecoin.

3. Liquidity Enhancement

Stablecoins are the blood of on-chain liquidity. The core issue of RWA now is that Web3 money is not interested, and Web2 money cannot come in.

The large-scale issuance of compliant stablecoins will provide abundant liquidity for the RWA market, addressing one of the biggest challenges currently faced by RWAs.

This means bringing in Web2 investors who truly have a demand for RWA assets.

4. Establishing Trust Mechanism

The stablecoin bill requires strict reserve management and auditing, and this transparent mechanism will enhance the trust in the entire RWA market, addressing the issue of traditional financial institutions' lack of trust in blockchain assets.

Now let's talk about the differences between the two stablecoin bills:

1. Who can issue stablecoins?

GENIUS Act: The threshold is relatively low, allowing a wider range of institutions to become issuers, as long as qualified non-bank institutions can also participate.

STABLE Act: Stricter, primarily inclined to allow banks and FDIC-insured deposit institutions to issue, while non-deposit institutions need to meet more conditions.

2. Algorithmic Stablecoin Destiny

GENIUS Act: Conditionally allows the existence of Algorithmic Stablecoins, providing room for innovation.

STABLE Act: Clearly prohibits Algorithmic Stablecoins, saying no to UST/LUNA-style tragedies.

3. Differences in Regulatory Philosophy

GENIUS Act: Relatively open, dual regulation by state and federal, reserved space for innovation

STABLE Act: More centralized and strict, inclined towards unified federal regulatory standards, granting greater powers to the FDIC.

4. Actual Impact

GENIUS Act: More friendly to the crypto industry, supporting innovation while ensuring basic safety.

STABLE Act: More conservative, prioritizing financial stability, more favorable to traditional financial institutions.

The Genius Act that the United States has passed this time is more friendly to innovation!! I can hardly imagine what the future will be like!

What will happen next?

As the stablecoin bill progresses, I expect to see:

- More traditional financial giants will launch compliant stablecoins.
- Projects in the RWA field will usher in a new round of financing boom.
- The wave of tokenization expanding from US dollars and government bonds to more traditional assets.
- The acceleration of the fusion between traditional finance and DeFi

This is also why I choose All IN RWA at this point in time, the trend has arrived!