Viewpoint: The Genius Act guarantees priority for stablecoin holders, and U.S. banks may "foot the bill" for this

ChainCatcher news reports that the "Genius Act," passed by the U.S. Senate, is drawing attention from the banking and legal sectors. The bill grants stablecoin holders a priority claim on their supporting assets in the event of bankruptcy, potentially putting traditional banks and other clients at risk.

Georgetown University Law Professor Adam Levitin warned that this arrangement essentially "subsidizes stablecoin issuance at the expense of bank deposits," which could harm the interests of ordinary bank customers, especially when the stablecoin issuer or its custodian bank goes bankrupt. The current version of the bill stipulates that stablecoins must be backed by highly liquid assets (such as U.S. Treasury securities), requires issuers to disclose reserve status monthly, and grants the ability to freeze tokens. If passed, banks and other entities will be able to issue compliant stablecoins.

The bill is currently awaiting consideration 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, its design regarding bankruptcy priority has sparked discussions about regulatory logic, financial stability, and potential interbank interest distribution. Industry insiders have indicated that the bill could become a turning point for stablecoin development, while also intensifying concerns about its impact on the traditional financial system.