The U.S. "Genius Act" Sparks Controversy: Priority for Stablecoin Holders May Affect Bank Depositors

[Coin World] News, the "Genius Act" passed by the U.S. Senate is attracting attention from the financial and legal sectors. The bill grants stablecoin holders priority claims to their supporting assets in the event of bankruptcy, which is believed to potentially have adverse effects on traditional bank customers.

Georgetown University law professor Adam Levitin pointed out that such arrangements are essentially "subsidizing stablecoin issuance at the expense of bank deposits," which could undermine the rights of ordinary depositors, especially when the stablecoin issuer or its custodian bank goes bankrupt.

The current bill draft requires that stablecoins be backed by highly liquid assets (such as U.S. Treasury bonds), and issuers must disclose reserves monthly and have the ability to freeze tokens. If approved, banks and other institutions will be able to issue compliant stablecoins.

Although the bill aims to enhance user confidence and strengthen the connection between stablecoins and the real financial system, its bankruptcy priority arrangements have also sparked discussions on regulatory logic and financial stability. Some analyses suggest that the bill could become a key point in the development of stablecoins, while also exacerbating structural shocks to the traditional financial system.