FinTechOn 2025》GENIUS stablecoin bill demonstrates "U.S. regulatory leadership," GBBC CEO: Taiwan may consider sovereign fund investing in encryption assets

"GENIUS Act" becomes a hot topic at the FinTechOn 2025 International Symposium after its passage, with former legislator and senior researcher at the Hudson Institute in Washington, Hsu Yu-jen, discussing stablecoin regulation and global competition with Sandra Ro, CEO of the Global Blockchain Business Council (GBBC), analyzing opportunities for Taiwan. (Background: The U.S. banking sector has joined forces to resist the "Genius Act", with stablecoins becoming a thorn in the side of traditionalists.) (Background Supplement: With the implementation of the GENIUS Act, how should we cautiously treat the stablecoin narrative?) The financial technology seminar titled "The GENIUS Act and Global Stablecoin Competition: Cooperation or Individualism?" is held at FinTechOn 2025 in Taipei. The focus panel features a discussion between Hsu Yu-jen, senior researcher at the Hudson Institute, and Sandra Ro, CEO of the Global Blockchain Business Council (GBBC), analyzing the global chain reactions following the passage of the GENIUS Act from perspectives in Washington and internationally, and offering strategic suggestions for Taiwan. The GENIUS Act elevates "experimental products" to a national strategic height. On the topic, why has the U.S. chosen to expedite legislation across party lines by 2025? Hsu Yu-jen sets the tone with a statement: Stablecoins are no longer liberal experimental products but are at the core of financial innovation and national policy. Hsu Yu-jen points out that the Genius Act mandates 1:1 reserves, bankruptcy priority payments, and OCC licensing as three safeguards, effectively bringing stablecoins into the traditional banking regulatory framework. This eliminates long-standing gray areas in the market and establishes the "American path" as a global reference model. As a driving force behind the Genius Act, Sandra Ro indicates that the U.S. has opted for private commercial stablecoins rather than retail CBDCs, considering both innovation speed and the global status of the dollar. She warns that while the Fed maintains a CBDC testing project, the political atmosphere shows that "market precedence" remains the core principle for every regulatory body. Sandra reminds us that although the Genius Act has now passed into law, it will take another year or two to truly integrate it into regulatory implementation and the final oversight and enforcement structures. This is part of the rulemaking process. Currently, the Office of the Comptroller of the Currency (OCC) has stepped forward to indicate that it will conduct public consultations on the GENIUS Act, and I believe the deadline is October 17. This will gather feedback from various parties. The U.S. Securities and Exchange Commission (SEC) and other agencies have also begun to query whether they need to reconsider regulations regarding the "custody aspect". "Whether you are a U.S. issuer or a foreign entity considering issuing a dollar-backed stablecoin, understanding any potential compliance requirements has now become an integral part of your business, which is very, very important, especially for stablecoin custodians or holders." International regulatory fragmentation, with the U.S. leading the way. When discussing global competition, Sandra Ro first mentions the EU's MiCAR and Hong Kong's licensing system. "It seems that a hundred flowers are blooming, but in reality, the standards are incompatible," she says. I believe international cooperation is the 'holy grail' for every country, even if the current situation is quite fragmented and chaotic. Hsu Yu-jen analyzes that international multi-party regulation indeed encourages innovation, but arbitrage risks and cross-border payment friction will ultimately force major economies to seek a minimum common denominator in KYC, AML, and consumer protection. Both speakers agree that the GENIUS Act will raise compliance thresholds, ultimately allowing major stablecoin issuers like USDC and USDT, which already hold over 66% market share, to further consolidate their positions. Smaller stablecoin operators that cannot afford reserve and audit costs will inevitably be marginalized. Private stablecoins, FedNow, and unfinished CBDC experiments. Sandra Ro shares her observations, pointing out that cross-border transactions have rapidly entered the realm of stablecoins and payment giants. Applications from Visa, Mastercard, PayPal, as well as Meta and Telegram, have made "dollar-denominated blockchain settlement" the new norm. In contrast, most retail CBDC plans in Japan and South Korea have slowed due to costs and privacy concerns. Hsu Yu-jen then shifts the focus back to Taiwan: "The success of FedNow proves that instant payments do not necessarily require blockchain, but on a global settlement layer, dollar stablecoins are replacing traditional European settlement networks—this is an unignorable geopolitical signal." Taiwan's sovereign fund entering the crypto asset market? As the discussion winds down, former legislator Hsu Yu-jen asks whether the sovereign wealth fund, currently in the evaluation stage, should consider incorporating stablecoins and Bitcoin into its long-term allocation to hedge against traditional asset fluctuations. However, the prerequisite is to establish risk models and governance structures for cold and hot wallets to avoid "herd mentality" decisions. Sandra Ro indicates that the concept of creating a strategic wealth fund is a good idea for many countries and regions. Some U.S. states are now discussing creating their own reserve funds and including Bitcoin. However, the government needs to conduct extensive due diligence before doing this and communicate with multiple partners to ensure a clearly designed investment framework. Because the sovereign fund aspect is not straightforward, does the fund passively hold assets like gold or Bitcoin? Or will it actively participate, such as becoming a node, verifying transactions, or even engaging in mining or staking to generate returns? There are many different possibilities for utilizing the sovereign fund to hold or control crypto-related assets. Sandra Ro advises the Taiwanese government to first establish management infrastructure, talent, and trust, all of which are potential income-generating avenues, ranging from passive holding to highly active participation, covering a broad spectrum. Sandra Ro also reminds that Taiwan has inherent advantages in chips and cybersecurity and can collaborate with international issuers and regulatory sandboxes to build stablecoin settlement nodes. "Don't wait until global standards are finalized before applying for entry," she says. The two speakers ultimately converge on the consensus that the digital currency game is not zero-sum but rather a competition of standards and ecosystems. If Taiwan participates in regulatory dialogue early and cultivates auditing and on-chain monitoring talent, it can secure a critical position before this reshuffling of the game concludes. Related reports: Zhichong Technology: Taiwan's first "micro-strategy-like" company is born, can Bitcoin + emerging market finance become a double engine for explosive growth? Bitcoin surged 10 times but couldn’t obtain it! Taiwanese netizens lost 1.5 BTC due to lost private keys and offered a reward of 360,000 for a solution. The 10th Blockchain Enthusiasts Annual Meeting in 2025: Web3.0 Innovation and Compliance Dance Together, Taiwan Welcomes a New Era of Digital Assets. The article "GENIUS Stablecoin Act Demonstrates 'American Regulatory Demonstration Power', GBBC CEO: Taiwan Can Consider Sovereign Fund Entering Crypto Assets" was originally published in BlockTempo, the most influential blockchain news media.