Bitcoin Dominates Global Infrastructure! The Genius Strategy of Stablecoins

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Hello, this is John. Today I'd like to talk about the relationship between the Genius Act, stablecoins, and Bitcoin.

Hi, I'm John. As a Japanese blogger familiar with blockchain technology, I'd like to explain in simple terms the new US law, the Genius Act (Guiding and Establishing National Innovation for US Stablecoins Act), stablecoins (virtual currencies with stable value), and how Bitcoin fits into the global infrastructure. Whether you're a beginner or intermediate, feel free to read on.

The reason this topic is important now is because the Genius Act came into effect in the United States on July 18, 2025. This clarifies the regulations for stablecoins, and blockchains like Bitcoin are gaining attention as a global payment infrastructure. While regulatory uncertainty was a barrier in the past, a clear framework has now been established, and global adoption is likely to accelerate in the future. Let's start by sorting out the basics.

If you are new to stablecoins or Bitcoin, we recommend starting by choosing an exchange. Here is an easy-to-understand explanation of the major services' comparison points:How to Choose and Compare Cryptocurrency Exchanges for Beginners.

What is the Genius Act? Background and Overview

The Genius Act is the first major US legislation regarding stablecoins, signed by President Donald Trump on July 18, 2025. The law provides for licensing and regulation of stablecoin issuers and clarifies asset custody standards. Specifically, it defines stablecoins as "payment stablecoins" and stipulates that issuers are obligated to redeem them at a fixed value.

In the past, stablecoin regulations were vague, posing challenges to market credibility. Now, this law allows stablecoins to be pegged to the US dollar and backed by Treasury securities, improving safety. Going forward, it will be easier for foreign issuers to participate in the US market.

Let's learn the basics of stablecoin

A stablecoin is a virtual currency with little price fluctuation and whose value is pegged to a fiat currency such as the US dollar. For example, USDT and USDC are designed to maintain a value roughly equal to one dollar. This makes them convenient for transactions and transfers.

In the past, stablecoins were risky due to a lack of regulation, but the Genius Act now requires issuers to back them with low-risk reserve assets (cash or government bonds) and ensures transparency. Going forward, consumer protections will be strengthened and stablecoins will become more widely used as everyday payment tools.

Why Bitcoin Will Dominate Global Infrastructure

Bitcoin is a decentralized network and blockchain with no centralized control. With the Genius Act making stablecoins Treasury-backed (U.S. Treasury bonds), the Bitcoin network has an advantage in global adoption because it provides a decentralized infrastructure to counteract the declining demand for U.S. Treasuries in a multipolar world.

In the past, Bitcoin was seen as a speculative asset, but now with technologies like the Lightning Network (a Layer 2 solution that speeds up transactions) and serving as the foundation for stablecoins, Bitcoin could emerge as a conduit for the digital dollar, rivaling alternative currencies such as those of the BRICS countries.

Use cases and practical examples

The combination of stablecoins and Bitcoin is useful for cross-border remittances and DeFi (decentralized finance). For example, sending stablecoins on the Bitcoin network has low fees and is available 24 hours a day.

Here are some tips for using stablecoins. Feel free to try them out.

Choose a trustworthy exchange: Look for platforms that are Genius Act compliant.
Start small: Purchase a small amount of stablecoin and test sending it.
Prepare your wallet: Store your stablecoin in a Bitcoin-compatible wallet.
Keep up with the news: Follow regulatory changes to avoid risks.

Don't forget about risks and countermeasures

Stablecoins are convenient, but regulatory compliance is key. While the Genius Act has increased security, there is still the risk of issuer bankruptcy and cyberattacks. When investing, you do so at your own risk and should aim for diversification. Please note that I do not provide investment advice, so please use your own judgment.

For security reasons, use two-factor authentication and choose a trusted wallet. While consumer protection is currently improving thanks to clearer regulations, we must continue to monitor legal changes.

Future outlook and the role of Bitcoin

The Genius Act will enable the stablecoin market to become the foundation for $4 trillion in cross-border transactions, and Bitcoin, with its decentralized network offering privacy and security, is set to strengthen its dominance over global infrastructure.

In the future, as per the EY survey, adoption by companies is expected to increase by 54%, and Bitcoin will become the foundation of digital finance. If you are unsure which company to choose first, compare fees, the stocks handled, and ease of use of the UI. For a detailed comparison,click here.

John's Summary

The Genius Act provides regulatory clarity for stablecoins and is an important step toward supporting global adoption of Bitcoin. Beginners should take this opportunity to learn the basics and participate in the digital economy of the future. I'm personally excited about the decentralized power of Bitcoin, but please stay safe and stay up-to-date.

This article has been compiled and fact-checked by the author, based on the following original articles and public information:

How to choose and compare cryptocurrency exchanges for beginnersclick here .

Bitcoin's Path to Win! The Stablecoin Revolution: The Secret to Infrastructure Dominance