BlackRock's bold prediction: the GENIUS Act will ignite a Bitcoin bull run, and stablecoins will reshape the global payment landscape.

The latest research report from BlackRock, the world's largest asset management company, points out that the implementation of the U.S. GENIUS Act will drive Bitcoin to experience a significant rise. The act establishes a regulatory framework for stablecoins as payment tools, prohibits interest payments, and limits the issuers, which is expected to build a USD tokenization ecosystem. Although demand for short-term government bonds may surge, experts believe the impact on yields will be limited. BlackRock emphasizes that Bitcoin will become an independent source of yield, and crypto spot ETF holders will receive significant favourable information.

New Era of Stablecoin Regulation

As the main issuer of Bitcoin Spot ETFs, BlackRock focuses on the three core reforms of the GENIUS Act:

1. Legal Qualification: Clearly define stablecoins as a means of payment rather than as investment products.
2. Issuance Restrictions: Only federally chartered banks and specific non-bank institutions are allowed to issue.
3. Reserve Standards: Reserve assets are limited to short-term U.S. Treasury bonds, repurchase agreements, and money market funds. The stablecoin market, currently accounting for 7% of the total crypto market value (approximately $250 billion), will accelerate its expansion under the new framework. However, the interest prohibition clause may hinder adoption in developed countries, while users in emerging markets may become the biggest beneficiaries.

The path to strengthening the dollar hegemony

Under the promotion of the bill, stablecoins pegged to the US dollar are becoming a key tool for traditional financial institutions to upgrade payment systems.

• Tether(USDT) and Circle(USDC) have held over 120 billion USD in short-term U.S. Treasury bonds.
• Only a small share of circulating US Treasury bonds, with huge expansion potential. BlackRock analysts pointed out: "Even if the scale of stablecoins doubles, the demand for US Treasuries will be hedged by the transfer of funds from other sectors. Additionally, the Treasury's continuous issuance of short-term debt to address the deficit makes the risk of a surge in US Treasury yields basically controllable."

Global regulatory competition begins

The report warns that the United States' lead in the stablecoin sector still faces challenges:

• Hong Kong is advancing innovation-friendly stablecoin regulation.
• Europe explores a limited-function digital euro scheme If other countries allow interest-bearing stablecoins or launch central bank digital currencies ( CBDC ), it may shake the dominant position of the US dollar in trade finance, forcing the US to reevaluate the interest prohibition.

Bitcoin welcomes institutional-level Favourable Information

BlackRock emphasizes that regulatory breakthroughs will strengthen the mainstream status of encryption assets:

"Bitcoin will continue to serve as an independent source of yield and a key asset in diversified portfolios" Three core driving forces have already formed:

1. Regulatory Certainty: The GENIUS Act Clears Policy Shadows
2. Payment Revolution: Stablecoins bridge fiat currency and the encryption ecosystem.
3. Institutional Entry: The average daily trading volume of spot ETFs breaks through 3 billion USD. Cryptocurrency long-term holders should pay attention to the strategic value of Bitcoin in inflation hedging and asset allocation.

Conclusion: The signing of the GENIUS Act marks a shift in cryptocurrency regulation from opposition to integration, with the US dollar stablecoin system becoming a bridge connecting traditional finance and the crypto world. BlackRock's bullish stance indicates that institutional capital influx into the crypto market is entering a new phase, with the value of Bitcoin spot ETF as a compliant entry point becoming prominent. As the global payment network initiates the tokenization revolution, the demand for blockchain cross-border payment solutions will grow exponentially. Crypto investors should focus on the leading stablecoin projects and the fund flows of Bitcoin ETFs.