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Genius Act Grants Stablecoin Holders Bankruptcy Priority, Potentially Increasing Risks to the Banking System

Genius Act Grants Stablecoin Holders Bankruptcy Priority, Potentially Increasing Risks to the Banking System

星球日报星球日报2025/07/11 15:43
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Odaily Planet Daily reports that the U.S. Senate has passed the "Genius Act," which grants stablecoin holders priority claims on the supporting assets in the event of the issuer's bankruptcy, drawing attention from the banking and legal sectors. Georgetown University law professor Adam Levitin pointed out that this mechanism could result in "subsidizing stablecoin issuers at the expense of bank deposits," harming the interests of traditional bank customers, especially if the issuer or custodian bank goes bankrupt.
The bill also stipulates that stablecoins must be backed by highly liquid assets such as U.S. Treasury bonds, requires issuers to disclose reserve information monthly, and mandates the ability to freeze tokens. If enacted, entities such as banks would be able to legally issue compliant stablecoins.
Industry insiders believe that although the bill aims to boost user confidence and strengthen the integration of stablecoins with traditional finance, the "bankruptcy priority" arrangement could disrupt the existing risk structure of the financial system, marking a significant turning point in the coordination of stablecoin development and regulation. (DL News)

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