Trump is trying to reconstruct the Stablecoin market

Bitmart Research, Research Arm Bitmart exchangeIn the evolution of digital finance, we published a comprehensive report to investigate the pivotal moments. As the United States accelerates efforts to regulate stable ecosystems through groundbreaking genius laws, USD1-Donald Trump’s complete Fiat Fact Stabble Lecomin-regulatory adjustment and market power are changing. This in -depth analysis explores genius law and USD1’s rapid rise in legal, financial, and political impacts, emphasizing their combined potential to redefine the Stablecoin environment and strengthen the dominance of the United States in the global digital asset economy.

preface

Since the collapse of Terrausd (USST) in 2022, the market share of the algorithm Starble Lecomin has continued to decline. As an algorithm Starble Recon, USST was not supported by a Fiat call or asset, but relied only on the algorithm mechanism to keep the PEG to the US dollar. If trust collapsed and the mechanism failed, a chain reaction occurred in the market. In contrast, Fiat-Support Stable Coins (USDT, USDC and USD1) such as USDT, USDC and USD1 are supported by high liquid assets such as US dollars and financial bonds. However, even these stable believers face to investigate regulatory compliance and transparency. To solve these tasks, the United States recently accelerated the development of genius law to build a comprehensive regulatory framework for the Stablecoin market.

1. Genius

The importance of genius behavior in the crypto market

The genius law plays a pivotal role in the regulation of the encryption market, especially in the area of ​​Stablecoins. The core provisions include restrictions on qualifications, preliminary requirements, compliance obligations, user protection and international application potential. This law clearly stipulates that Stablecoin must be completely supported by the equal amount of liquid assets, allowing users to repay their possession at any time. To protect the token holder, the issuer’s asset must prioritize the user repayment when bankruptcy.

In addition, the issuer must strictly observe the funding and the CFT (Counter-Terrorism Finance) requirements to prevent misuse of stable coins for illegal purposes. Overall, Genius ACT strengthens regulatory supervision and protects user rights, but raises the entry criteria of the publisher of the STABLECOIN in the short term. Existing publishers must reconstruct asset reserves, public practices and internal systems that can accompany significant costs and operational complexity.

Main provisions of genius law

1. License and regulatory framework

This law allows only three types of organizations to issue a Tabble Lecomin.

• Subsidiary

• Non -bank financial institutions approved by federal regulators (eg, institutions regulated by OCC)

• A national grade issuer who meets the “real equality” standards of the federal

This law adopts a double regulatory system.

• Over $ 1 billion in market caps must be subject to federal supervisors.

• Small issuers may be regulated at the main level if they meet the federal standard requirements.

2. Preliminary and asset separation requirements

All Stablecoin must support 100% reserves and only use the following high liquid assets.

• Cash and demand deposits

• US Treasury Securities (≤ 93 days)

• Short -term repurchase contract (≤ 7 days under the supervision of the central bank)

• Central bank reserve

Customer assets must be strictly separated from operating funds, cannot be re -fled, and can only be temporarily promised for short -term liquidity purposes.

3. Transparency, audit and responsibility mechanism

The publisher must disclose the composition of the preliminary asset every month and receive the audit of the public accounting company. Regulators establish standards for capital adequacy, liquidity and risk management.

• Publishers with a market cap of more than $ 50 billion will face strict audits and compliance standards.

• CEOs and CFOs must sign monthly compliance certification

• False statements can lead to criminal responsibility.

4. Compliance with AML and national security

The publisher of the Stablecoin is classified as a financial institution according to the bank secret law, and must implement the AML and sanctions and compliance programs including the following.

5. Restrictions on foreign publishers and large technologies

Foreign Starble Lecomin publishers who do not comply with the US equal standards should be banned from a USLARGE technology company (e.g. Meta, Amazon). In order to prevent monopoly behavior and systematic risk, we need to meet strict financial compliance, user personal information and fair competition requirements.

4. Consumer protection and bankruptcy priority

Stablecoin holders will make a priority claim to the issuer assets in bankruptcy. To avoid conflicts, this law prohibits parliamentary and senior executives to participate in the issuance of Stablecoin during their term.

7. Legal classification and regulatory clarity

This law is excluded from SEC and CFTC jurisdiction because payment stablecoins are not classified as securities or products. This provides legal clarity and prevents redundant regulations.

Legislative development

As of May 22, the genius law entered the revision stage and passed the consent to conduct discussions on 69 votes and 31 votes. The House of Representatives and Senators rapidly develop a rare two -party agreement on each version of the Stablecoin law and encryption regulations, and this law is expected to complete the legislative process by the fourth quarter of 2024.

2. USD1 introduction

USD1 background

USD1 is Stablecoin, which started in March 2025 by WLFI (WLFI), a Defi platform controlled by the US President Donald Trump’s family in March 2025. Each USD1 token is designed to maintain a 1: 1 peg in the US dollar and is fully supported by the reserves consisting of short -term US Treasury Securities, US dollar deposits and cash equivalents.

The project emphasizes regulatory compliance and transparency, and includes preliminary assets managed by Bitgo, a third -party accounting company, regularly audited and leading digital asset custody. The main characters of this project include Zach Witkoff, the co -founder of WLFI, and Eric Trump, the son of Donald Trump, the head of WLFI.

Current status of USD1

As Bitcoin recently accounted for an all -time high and interest in USD1 has soared, ecosystems related to USD1 networks have attracted much attention. Tokens in partner projects such as Buildon, Lista Dao, Stakestone, HAEDAL, and Cookie have experienced a sharp price increase, causing passion for the story of “WLFI + USD1”.

As of mid -May 2025, USD1’s market cap is the seventh largest Stablecoin, exceeding $ 2.1 billion. Since its launch in March, USD1 has been expanded rapidly in Ethereum, BNB Chain and more recently in Tron Network. However, according to the official statement of the WLFI, USD1 is mainly targeted for institutional users. The most notable actual application to date is that MGX, an ABU DHABI -based investment company, is the official Stablecoin for $ 2 billion in investing in Binance.

USD1 ecosystem partnership

Buildon

Buildon is a meme token representing the cultural mascot of the BSC (BNB Smart Chain) Builder Community. On May 17, the project officially announced the addition of the USD1 trading pair and actively participated with WLFI on social media. On May 22, WLFI publicly disclosed BUILDON’s default token B purchases, causing more than 450%of the price surge.

Stakestone

On May 9, Stakestone announced a partnership with WLFI to provide USD1 users with a fluid infrastructure and cross chain staying yield. Following the listing of Binance on May 22, the Aboriginal token STO of STAKESTONE increased by more than 20% a day.

inventory

On May 7, Lista DAO announced a strategic partnership with WLFI. Lista Ecosystem plans to add USD1 to the Treasury, introduce USD1/Lisusd LP pairs, and support USD1 as a CDP collateral. Following the Binance Listing News on May 22, Lista’s token prices increased 37.9% per day.

In addition to these key partners, USD1 is now supported in a variety of Defi protocols, including Venus Protocol, Aster, Meson Finance and Falcon Finance, and can be used for trading, mortgage and fluid provisioning.

In terms of custody and liquidity, Bitgo is responsible for having a preliminary asset, and Bitgo Prime provides institutional liquidity and trading services. DWF Labs has placed multiple complaints of dissatisfaction with USD1 and has invested $ 25 million in WLFI token purchases to support ecosystems and consumer applications. USD1 is integrated into platforms such as tokenpocket, Hot Wallet, Pundi X and UMY, which can be used in payment, hotel reservation and various Web3 Systlets.

Comparison between USD1 and competitors

Mechanically, USD1 shares a lot of similarities with major stabble recomins, such as USDT and USDC. The US Treasury Securities, Cash and other fluid assets follow a 1: 1 preliminary model, which is mainly supported. The famous political brand value is a unique political brand value with third -party custody and periodic audit to ensure transparency and regulatory compliance. The USD1, supported by the Trump family through the WLFI, experienced the initial stage growth, especially the official stability of US $ 2 billion investment in MGX’s Binance. This driving force is mainly led by the influence of the Trump family and political capital, which has strengthened the trust in Stablecoin’s reliability and regulatory soundness.

However, it is worth noting that the $ Trump Meme Coin, which was previously released with the Trump name, has experienced significant price volatility and raises concerns about stability and long -term value. This historical context can affect investors’ trust in USD1, especially considering a wide range of political dynamics that can affect emotions and risks in the encryption market.

3. Future prospect

Genius Law is not only a regulatory framework for the Starble Recon, but also a widespread strategic initiative in the United States to strengthen the international dominance of digital dollars. By promoting the inflow of global capital to US financial assets and promoting the issuance of USD-PEGGED Stablecoins, which forces foreign publishers to be more stricter, this law aims to ease the risk of patients such as Terrausd Collap while strengthening the security and stability of the entire crypto market.

In these backgrounds, the highly complying with the Stablecoin project is well deployed to increase market awareness. For example, USD1 with strong political and institutional support can benefit greatly as genius behavior develops. Integration with ecosystem partners can play more and more important in the future digital asset environment.

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