Viewpoint: The Genius Act guarantees priority for stablecoin holders, and Bank of America may "foot the bill" for it

On July 12th, according to DL News, the Genius Act passed by the US Senate is attracting attention from banks and the legal community. The bill grants stablecoin holders priority claims over their backed assets in the event of bankruptcy, which could put traditional banks and other customers at risk. Georgetown University law professor Adam Levitin warns that this arrangement is essentially "subsidizing stablecoin issuance at the expense of bank deposits" and may harm the interests of ordinary bank customers, especially in the event of the bankruptcy of the stablecoin issuer or its custodian bank. The current version of the bill stipulates that the stable currency must be supported by highly liquid assets (such as US treasury bond bonds), the issuer needs to disclose the reserves every month, and has the ability to freeze tokens. If approved, banks and other entities will be able to issue compliant stablecoins. The bill is currently awaiting review by the United States House of Representatives. Although aimed at enhancing user confidence and strengthening the connection between stablecoins and the real financial system, the design of their bankruptcy priority has also sparked discussions on regulatory logic, financial stability, and potential interbank benefit distribution. Industry insiders have expressed that the bill may become a turning point for the development of stablecoins, while also exacerbating concerns about the impact on the traditional financial system.