Recently, stablecoin-related news has frequently topped the trending searches, mainly due to two important announcements:

First, Hong Kong will officially implement the "Stablecoin Regulation" on August 1, and Ant Group and JD Finance have actively submitted license applications.

Secondly, a company in the United States specializing in stablecoin business has successfully gone public, with impressive stock performance.

These phenomena have prompted me to think about the timing of the United States pushing forward stablecoin legislation at this moment, let's delve into the significance behind this trend.

Although stablecoins have been around since 2014, they have long been in the niche application stage. According to analysis, the rapid development of stablecoins is closely related to Trump's return to the political stage. The dual policy approach of cryptocurrency regulation and "de-regulation" during his term created a unique environment for the industry.

The successful listing of Circle is precisely riding on the east wind of this policy, particularly benefiting from the two latest bills enacted in the United States: "STABLE Act" and "GENIUS Act". Interestingly, the combination of these two bill names echoes Trump's self-description as a "stable genius"( stable genius), and this coincidence may carry some symbolic meaning.

Circle, as a company that always operates within the regulatory framework, represents the "compliance faction" in the stablecoin industry and is also willing to accept its positioning within the regulatory system. Under the current policy direction, this background has garnered unprecedented attention. As the only truly compliant stablecoin issuer in the market, its rarity naturally attracts a large influx of capital.

From a macro perspective, stablecoins may become an important support for U.S. Treasury bonds under the Trump administration.

From a micro perspective, the emergence of stablecoins is rooted in the rise of digital assets on the blockchain, and due to the uniqueness of blockchain technology, they have the potential to become a new generation of cross-border payment tools.

Stablecoin issuers generate profits by holding reserves of USD assets, which can indeed be regarded as a low-risk, high-return business model under normal market conditions.

On the surface, stablecoins seem to be a tool to consolidate the global status of the US dollar, but behind it lies a more complex economic and political game.

The development trends in this field are worth our continuous attention and reflection.