The U.S. Senate passes the Genius Act: stablecoin holders gain priority claim rights, raising concerns in the banking industry.

[Block Rhythm] On July 12, the "Genius Act" passed by the U.S. Senate is drawing attention from the banking and legal communities. The bill grants stablecoin holders priority claims on their supporting assets in the event of bankruptcy, which may pose risks to traditional banks and other clients.

Georgetown University law professor Adam Levitin warned that this arrangement essentially "subsidizes the issuance of stablecoins at the expense of bank deposits," which could harm the interests of ordinary bank customers, especially in the event of bankruptcy of the stablecoin issuer or its custodian bank. The current version of the bill stipulates that stablecoins must be backed by highly liquid assets (such as U.S. Treasury securities), and issuers are required to disclose their reserves monthly and have the ability to freeze tokens. If passed, banks and other entities will be able to issue compliant stablecoins.

The bill is currently awaiting review by the U.S. House of Representatives. Although it aims to enhance user confidence and strengthen the connection between stablecoins and the real financial system, the design of its bankruptcy handling priorities has also sparked discussions about regulatory logic, financial stability, and potential interbank interest distribution. Industry insiders indicate that this bill could become a turning point for the development of stablecoins, while also intensifying concerns about the impact on the traditional financial system.