The power game behind stablecoins

Here is the English translation: The cryptocurrency revolution, once viewed as a "disruption of traditional finance," ultimately did not resort to violent confrontation. Instead, it deeply integrated with the regulatory system and political consensus, becoming a "tamed revolution." From challenging tradition to seeking permission, from decentralization ideals to centralized regulatory reality, the absurdity and contradiction of this "revolution" is the core of this analysis. When rebels bow to the system, is it a game of interests or an inevitable trend of the times? In 2025, rebels (cryptocurrencies) did not attack banks but applied for a license from the Office of the Comptroller of the Currency (OCC). I have been trying to understand the "GENIUS Act" phenomenon. The more I ponder, the more I find the entire matter intriguingly absurd. So, please allow me to sort out how we transformed from "act quickly, break rules" to "act quickly, comply with regulations." The bill has been signed into law, and now all rules are settled. Stablecoins are now regulated, no longer mysterious. We know exactly who can issue them, who regulates them, and how they operate. But this raises an obvious question: **What is the meaning of all this?** [Rest of the translation follows the same professional and accurate approach, preserving technical terms like Block, Circle, Tether, TRON, ETH, etc.]

Don't misunderstand, I fully support regulatory clarity and US dollar-backed stablecoins. This is indeed great: crypto innovation now has rules to follow, and the mainstreaming of digital dollars can be considered a true revolution. I wholeheartedly support this. But don't pretend this is some kind of regulatory generosity. Regulators didn't suddenly fall in love with crypto innovation; someone walked into the Treasury and said: "Let's get more of the world to use dollars, just in digital form, and make them buy more US Treasury bonds to back it." Thus, stablecoins transformed from "dangerous crypto stuff" to a "brilliant tool of dollar hegemony."

Each USDC issued means one more Treasury bond sold. 242 billion dollars in stablecoins means hundreds of billions of dollars directly flowing into Washington, boosting global demand for US Treasury bonds. Every cross-border payment that bypasses the euro or yen, and every forex market listing a regulated US stablecoin, is another "franchise" of the American monetary empire.

The GENIUS Act is the most sophisticated diplomatic policy operation, disguised as domestic financial regulation.

This raises some interesting questions: What happens when the entire crypto ecosystem becomes an appendage of US monetary policy? Are we building a more decentralized financial system or creating the world's most complex dollar distribution network? If 99% of stablecoins are pegged to the dollar, and any meaningful innovation requires approval from the US Comptroller of the Currency, have we accidentally turned a revolutionary technology into the ultimate export business of fiat currency? If the rebellious energy of cryptocurrencies is directed towards improving the efficiency of the existing monetary system rather than replacing it, and everyone can make money as long as payment settlements are faster, would anyone really care? These may not be problems, just far from what people initially wanted to solve with this movement.

I've been joking about this, but the truth is, this might actually work. Just like the free banking system of the 1830s evolved into the Federal Reserve System, cryptocurrencies may be moving from a chaotic adolescence towards maturity, becoming a systemically important part of financial infrastructure.

Honestly, for 99.9% of people, they just want to transfer money quickly and at low cost, and don't care about monetary theory or decentralization principles.

Banks are already positioning themselves to become the main issuers of these new regulated stablecoins. JPMorgan, Bank of America, and Citigroup are reportedly preparing to offer stablecoin services to their clients. The institutions that were supposed to be disrupted by cryptocurrencies have now become the biggest beneficiaries of crypto regulation legitimization.

This is not the revolution anyone expected, but perhaps the revolution we ultimately get. Strangely, it's also quite "genius".