Note: On March 26, Bryan Steil, chairman of the U.S. House of Representatives’ Subcommittee on Digital Assets, FinTech and Artificial Intelligence, and French Hill, chairman of the Financial Services Committee, announced the draft of the Stablecoin Transparency and Accountability Promoting Better Ledger Economy Act (STABLE Act for short). This is the first US dollar stablecoin regulatory bill published in full text, and it has become the most reliable first-hand material for us to gain a glimpse of the US legislative authorities' regulatory ideas on US dollar stablecoin regulatory ideas. To this end, I specially invited Zhang Haisheng, a Singapore Web3 expert who has long studied and practiced stablecoin payments and RWA, to write an article to interpret the draft bill to help us better understand the significance and direction of this incident.

In recent weeks, the United States has taken frequent moves on stablecoin legislation, intensively introducing related regulations, and is showing an acceleration, with the drum beats becoming increasingly urgent, and the storm is about to come and wind fill the building. The most significant of the one is the newly released draft of the "STABLE Act" (Stablecoin Transparency and Accountability Promotion of Better Ledger Economy). The draft was drafted in December 2020 by three Democratic members of the U.S. House Financial Services Committee, Tlaib, García and Lynch, and was then shelved by the Democrats until March 26, 2025, and was released in full and regained the light of day. This bill is expected to jointly shape the future stablecoin regulatory framework for the United States in another bill on stablecoins, Stable Genius Act. Therefore, it is particularly worth interpreting.

Because of the axial position of stablecoins in the digital financial system, the United States' every move on this topic is eye-catching. What is the real motivation for the United States to promote stablecoin legislation at this time? Is it restricting the lawlessness of stablecoins, or "weaponizing" the US dollar stablecoins? What does the legalization of stablecoins mean to the digital asset industry? What kind of door of opportunity will be opened? The draft of "STABLE Act" provides us with an excellent text to peek into the regulatory ideas of the United States' stablecoin. This article will deeply analyze the core content of the draft and the deep reasons behind it, explore its far-reaching impact on the digital asset industry in the United States and the global market, and build confidence for Web3 practitioners, point out the direction for moving forward, and help occupy a favorable position in this change.

What does the draft say?

This draft has a total of 72 pages, thousands of words, and the full text is written in the special style of the US legislative documents, which contains a long but unimportant passage. To avoid bigI carefully read the full text of the hardships of reading at home and summarized the most important information.

First, the draft defines what a stablecoin is. Stablecoins are pegged to fiat currency and are a payment and settlement tool, not securities or deposits. At the same time, the draft stipulates that the issuer must be able to redeem it in legal currency, which is equivalent to stamping and certification of the legal status of the stablecoin as a payment tool.

Secondly, the draft stipulates who can issue stablecoins. As we all know, in the crypto field today, anyone can issue stablecoins, but this freedom will probably be gone forever. The draft suggests that only compliant stablecoin issuers, including subsidiaries of insurance depositors, federally qualified non-bank issuers, or state qualified issuers, can issue stablecoins in the United States.

At the same time, the draft also stipulates the specific requirements for issuance in detail. The draft stipulates that issuers must hold at least 1:1 reserve assets, including US dollars, current deposits, short-term government bonds, repurchase agreements and money market fund securities, etc., and also requires issuers to regularly disclose reserves and redemptions.

Finally, the draft also said what things cannot be done. First, the bill stipulates that the issuance of algorithmic stablecoins will be prohibited within two years after their enactment, and even in the long run, the possibility of approval is unlikely. Then, unauthorized institutions are not allowed to issue stablecoins in the United States. In addition, issuers are not allowed to pay interest or income to stablecoin holders.

In short, the core goal of the draft is to clarify the legal status of stablecoins, strengthen consumer protection, and improve market transparency, so as to continue the influence and dominance of the US dollar in the global financial system through stablecoins.

Why is the stablecoin bill introduced at this time?

The core content of this draft did not exceed industry expectations, and it even formally wrote the rules of market expectations into the law. So the question is: Since everyone has a consensus, why does the United States still have special legislation? If you take a closer look, this opportunity is really intriguing. Why did the United States choose to formally promote this legislation at this moment? Is it a pure financial regulatory need or paving the way for compliance for the Web3 industry? Is it a global game of digital dollars, or is a more profound global currency war about to begin? Next, I will take you to find out based on my own understanding.

Clear the status of the US dollar stablecoin and push the digital asset industry into the fast lane

For a long time, there has been uncertainty in the legal status of stablecoins, which has led to investment in traditional financial institutions and large institutions.Investors dare not get involved easily. However, with recent legislation clarifying the legitimacy of stablecoins, this uncertainty has been effectively eliminated, giving financial institutions a reassurance and paving the way for their entry.

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

In this way, the Web3 industry will usher in a wave of capital inflows, and compliant stablecoins will definitely become the core infrastructure in the digital economy. This will promote payment, clearing and cross-border settlement based on compliant stablecoins to gradually become mainstream payment methods in the digital economy, and will also vigorously promote the vigorous development of fields such as DeFi and RWA, and may even lead them to mainstream financial markets. Therefore, the United States' goal of promoting stablecoin compliance is to promote the rapid development of digital assets by allowing global capital to flow into the Web3 world more smoothly, and help the entire industry move towards a more mature future.

Hedging the weakening of the trade war on the US dollar's status, providing people around the world with a new channel for "investment in the United States"

In recent years, the trend of de-dollarization has gradually emerged in some, and many economies are trying to reduce their dependence on the US dollar in international trade. However, in sharp contrast, the US dollar stablecoin has quietly emerged, becoming an emerging tool for cross-border payments and international settlements, presenting an intriguing situation. If the United States can grasp this trend and actively promote the development of the US dollar stablecoin, it will be expected to become an important tool to hedge against the decline in the international status of the US dollar. On the contrary, if regulation lags behind, weak support, and even lets other currencies dominate the field of digital stablecoins, global funds may further move away from the US dollar system and weaken the international influence of the US dollar.

To meet this challenge, the United States passed legislation to legalize the dollar stablecoin. Legalized dollar stablecoins continue to serve as an important tool for global payments, trade and investment. At the same time, because it is incorporated into the regulatory system, the United States can control the flow of global digital funds and even use it as a weapon of financial warfare when necessary.

At the same time, compliant US dollar stablecoins also provide a legal and important way for other assets to flow to the United States. This means that everyone can use the US dollar stablecoin to avoid their own countriesCurrency depreciation risk and investing in US dollar assets more conveniently. Since funds can bypass their own monetary controls and flow directly into the US dollar asset pool, global capital has been further "dollarized" invisibly. Judging from this trend, the compliant US dollar stablecoin in the future will surely evolve into a "global digital dollar".

To sum up, the US dollar stablecoin is not only an important part of Web3, but also a strategic asset of the United States in global currency competition. By strengthening regulation and leveraging global digital asset flows, the United States further consolidates its dominance in payments, trade and investment. As the latest financial tool to maintain the hegemony of the US dollar, the US dollar stablecoin plays an important role globally, not only strengthening the United States' control over the financial market, but also becoming the latest financial weapon to combat and curb competitors and stabilize the dominance of the US dollar.

Activate innovation in DeFi and RWA fields

As the legal mapping of fiat currency in the Web3 world, stablecoins are not only payment tools, but also core circulating assets in the RWA field. The release of this draft means that stablecoins will be circulated on a larger scale, thereby promoting the deep integration of digital assets and real assets. The application of stablecoins will cover DeFi, payment, cross-border settlement and RWA, helping enterprises and individuals to conduct global transactions more conveniently, thereby subverting the traditional fiat currency payment methods.

With the implementation of stablecoin supervision, institutional funds will be more confident in entering the digital asset field, especially in terms of the expression and circulation of physical assets on the chain. It has become easier to go global assets to chain, and companies can also directly issue bonds, real estate tokens, etc. on the chain, thus allowing global investors to directly participate in high-quality asset investment in the United States and other places. More importantly, the United States attracts global investors into its digital asset ecosystem through compliant stablecoins, thus forming a capital siphon effect. With the compliance of stablecoins, the United States provides global investors with a safer and transparent investment channel, attracting a large amount of capital inflows. This not only injects new vitality into the digital asset market in the United States, but also promotes the globalization and digitalization of the US economy through the widespread application of stablecoins. Ultimately, global investors indirectly supported the stability and development of the US economy through stablecoins trading, investment and asset allocation, and consolidated the US to become the center of global capital flows.

Strengthen control, the compliance development of US dollar stablecoins is consistent with US interests. One of the core goals of the draft is to ensure that the development of stablecoins does not pose a threat to US financial security. It emphasizes the need to prevent unauthorized stablecoins from disrupting financial markets and ensures that the stablecoin system is firmly grasped.In compliance agencies and in hands. Unauthorized stablecoins may pose liquidity risks, so the draft passes strict issuance conditions to ensure that stablecoins do not pose a threat to the banking system.

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

Through this draft, the United States can not only effectively supervise its own stablecoin market, but also indirectly control the global circulation of US dollar stablecoins. This move will help ensure that global capital remains around the dollar system and strengthen control over global dollar flows.

From the introduction of this draft, it can be seen that this is not just a simple financial regulation, but the beginning of a brand new currency war. The United States’ goal in the digital age is not only to maintain the hegemony of the dollar, but also to attract global capital to the United States through stablecoins, ultimately dominating the new generation of global financial system.

Impact on the digital asset industry

Stablecoin payment not only constitutes the infrastructure of the digital asset industry, but also serves as a central link in it, which plays a role in affecting the development of the entire industry. From capital inflows, industry compliance, RWA chaining to innovative development, the compliance of stablecoins has far-reaching impacts and promotes the continuous maturity of the digital asset industry.

First, the compliance of stablecoin payments has attracted a large number of institutional investors to the digital asset industry. As relevant regulations gradually become clear, the entry of traditional financial institutions and large funds has become smoother. Compliant stablecoins allow more fiat currencies to be converted into digital assets smoothly, further improving market liquidity and laying the foundation for the broad development of emerging fields such as Web3 and DeFi. Therefore, stablecoins have become an important part of the Web3 infrastructure and inject new vitality into the industry.

Secondly, the compliance of stablecoins has promoted the maturity and standardization of the digital asset industry. With the gradual establishment of the regulatory framework, market transparency has been significantly improved, disorderly competition and potential market risks have been effectively curbed. The clear compliance requirements not only reduce the risk of illegal acts such as money laundering, but also ensure the standardization of capital flows, thus laying a solid foundation for the long-term and healthy development of the industry.

In addition, stablecoinsCompliance provides a trusted payment tools and circulation carrier for RWA's back-chain. According to BCG, the RWA market is expected to reach $16 trillion. With the popularization of compliant stablecoins, this market will usher in innovative opportunities, promote the digital on-chain of assets and the development of global investment flows, and further promote the globalization and cross-border integration of the digital asset industry.

However, stablecoin compliance also presents some challenges. Higher compliance requirements may increase operating costs for small stablecoin issuers and limit entry of some emerging companies. In addition, strict compliance thresholds may lead to market concentration, thereby curbing market competition and may slow down innovation. Therefore, how to balance compliance with market vitality has become an important topic in industry development.

In general, stablecoin compliance provides a clear regulatory framework for the digital asset industry, promoting market maturity and innovation. With the popularity of compliant stablecoins, capital liquidity and market participation will be significantly improved, and emerging fields such as DeFi and RWA will usher in more vigorous development prospects. In the digital asset industry in the future, the balance between compliance and innovation will become the key to continuously promoting industry progress.

How to deal with other global markets

The compliance of stablecoins is not only a product of demand in the US market, but is also promoting a profound reconstruction of the global financial system. As countries move differently, the development of global digital assets will be greatly affected. Different attitudes towards stablecoins vary according to their respective financial environment, needs and market challenges. The following are the response trends of major markets to the legalization of stablecoins:

European market. The EU's actions in stablecoin regulation are reflected in the introduction of the MiCA Act. The bill is expected to reach an agreement with the United States on stablecoin regulation to promote the formation of a global stablecoin payment compliance framework. The implementation of the MiCA Act will not only regulate the operating rules of the stablecoin market, but also provide stable guarantees for the development of Web3. The EU's regulatory framework will echo the US stablecoins, providing higher interoperability for cross-border payments and paving the way for the legal 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 advance the process of legalizing stablecoins. The Monetary Authority of Singapore (MAS) has formulated a relatively comprehensive framework in this area, and Hong Kong and Japan are also conducting corresponding legislation and testing. As the United States progresses gradually, Asian countries may refer to the US stablecoin regulatory framework to increaseStrengthen market stability and respond to cross-border risks. Especially in the competition in the fields of financial technology and digital assets, Asia must connect with international standards to avoid lagging behind in global financial changes.

Other developers. Some developers are conservative about the legalization of the US dollar stablecoins, worried that it will affect currency sovereignty and the independence of their own currencies. These concerns are that the popularity of US dollar stablecoins may lead to a decrease in the circulation of domestic currencies and may even affect the formulation of central banks. However, as the United States leads its leadership in promoting stablecoin compliance, more developers may gradually embrace the U.S. model. Especially under the trend of globalized digital currencies, these may find that the development of stablecoins by issuing their own stablecoins or referring to the US model will help promote the modernization of their own digital currency system and attract more international investment. At the same time, these will face the problem of balancing monetary sovereignty and global finance in the process.

Globalization trends and future prospects. With the United States' leading role in the process of stablecoin compliance, countries around the world will gradually connect, thereby promoting the unification of the global stablecoin payment system. Stablecoin compliance 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 greatly 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 also accompanied by a series of challenges. There will be differences in regulatory standards and compliance requirements in various countries, and how to achieve coordination and mutual recognition on a global scale remains a complex task. Different economic structures, financial needs and positions may lead to the compliance process of stablecoins having different implementation effects and speeds in different regions.

Future Outlook

With the advancement of stablecoin compliance process and the rapid development of the Web3 ecosystem, the digital asset industry is entering a new stage. In the future, with the influx of a large amount of institutional capital, the industry will not only usher in unprecedented opportunities, but also face more profound changes. We will witness a new situation of capital outbreak and market reconstruction. The following are some key trend outlooks for future development:

Giants are entering the market, and RWA ushers in a capital explosion moment. Once the stablecoin regulatory framework is implemented, it can be foreseen that traditional financial institutions will carry a large amount of capital to enter the stablecoin and RWA markets. This will mark the stage of digital asset industry's growth from brutal growth to compliance development, and it also means that Web3 will become a major application.During this period, the digital asset industry will also usher in a new development cycle.

Stablecoin payment is about to replace traditional payment methods with inefficient and high fees. With the further development of stablecoins and DeFi technologies, cross-border payments will usher in a revolutionary breakthrough. The cost of cross-border payment, clearing and settlement of stablecoins will be greatly reduced, the efficiency will be significantly improved, and cross-border payments will become more convenient. For traditional payment networks, such as SWIFT, VISA, etc., stablecoin payment methods will pose a subversive challenge.

RWA triggers a major asset migration. The global trillion-dollar physical assets will be resurrected on the blockchain, and real-world assets pour into the crypto world through RWA, and the speed of capital flows will reach unprecedented levels. This is a global financial reconstruction driven by digital assets, a Normandy landing that will subvert the traditional financial system. We must be prepared to meet this tide of wealth.

The hegemony of the digital dollar has begun, 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 its financial colonization through the stablecoin as a financial weapon. Through legislation, the US dollar hegemony was quietly implanted into blockchain. The United States provided a digital weapon for its financial system, and all transactions on the chain were adding to the strength of the US dollar empire. This is not a prediction, but a fact that is happening. The digital hegemony of the US dollar is rapidly swallowing up the global financial ecosystem, and the outcome of the new round of currency war has been destined in advance.

Unknown to us, the future has come. As practitioners of Web3, we must maintain clear thinking and sufficient knowledge reserves to welcome this unprecedented change.

Summary

The advancement of US stablecoin legislation will become the 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 to enter, providing strong support to the Web3 industry and driving prosperity in areas such as payments, DeFi and RWA.

As the legal mapping of fiat currency in the Web3 world, the US dollar stablecoin will continue to dominate the market, and the compliance of the stablecoin will promote cross-border payments and global capital flows, subvert traditional fiat currency payment methods, and profoundly change the global financial landscape, and further consolidate the dominance of the US dollar in the global financial system.

This stablecoin revolution is not only a financial technology innovation, but also a reshaping of the global monetary system and economic order. Under the leadership of the United States, the widespread use of compliant stablecoins willPromote the transformation of traditional fiat currency payment methods, start a new round of currency war, and consolidate the hegemony of the US dollar in the global financial system through stablecoins.