Recently, the U.S. Crypto Assets regulatory landscape has reached an important turning point. The Genius Act (Genius Act), as the first federal-level legislation targeting Crypto Assets in U.S. history, officially took effect on July 18. The passage of this act marks a significant shift in the U.S. government's attitude toward digital asset regulation.

The bill received broad support in Congress, passing the House with an overwhelming advantage of 308 votes in favor and 122 votes against, fully reflecting the bipartisan consensus on the regulation of Crypto Assets. The core of the Genius Act is to establish a brand new federal regulatory framework, with the Office of the Comptroller of the Currency (OCC) responsible for issuing stablecoin issuance licenses, a mechanism that operates independently of the traditional banking system.

The bill adopts a tiered management strategy for stablecoin projects of different sizes. Projects with an issuance exceeding $1 billion must register at the federal level, while smaller projects can choose to register at the state level but must still meet equivalent regulatory standards. This flexible regulatory approach takes into account the complexity of large projects while leaving room for small innovations.

It is worth noting that the "Genius Act" sets restrictions on the issuance of stablecoins by tech giants. Non-financial technology companies like Meta, Walmart, and Amazon are prohibited from directly obtaining stablecoin issuance qualifications. This regulation aims to prevent tech giants from monopolizing the digital currency space by leveraging their market advantages. However, the act also leaves room for these companies to indirectly participate in the market through methods such as "white label partnerships" and "revenue sharing."

In addition, the "Genius Act" explicitly prohibits the provision of yield-bearing stablecoins, meaning that the stablecoin itself cannot embed a yield mechanism. However, the act does not completely close off yield channels, instead allowing for indirect transmission of interest income to partners through a revenue sharing structure. This provision protects investors while also leaving some flexibility for the business model of stablecoin projects.

The introduction of the "Genius Act" is undoubtedly an important milestone in the regulation of crypto assets in the United States. It not only provides a clear legal framework for the issuance and operation of stablecoins but also lays the foundation for the healthy development of the entire cryptocurrency industry. With the implementation of this act, we have reason to expect that the U.S. cryptocurrency market will welcome a more regulated and transparent development environment.