The new weapon of US "hegemony": Revealing the US stablecoin bill and how it reshapes the global financial order and monetary diplomacy?

It is not the Metaverse, the NFT craze, or the hoodie-wearing libertarian utopians that truly brought Crypto Assets to the doorstep of Washington. It is the dollar. It is not the theoretical intrinsic value of the Crypto Assets White Paper, but rather the hegemonic, meticulously designed dollar that supports global power and America's dominance. Therefore, when the U.S. Senate approved a bipartisan bill to regulate stablecoins (crypto assets pegged to the dollar), it is not just about financial innovation, but about sovereignty. This legislation heralds the arrival of a new era, where stablecoins will become a new tool of U.S. foreign policy and global financial influence.

The GENIUS Act and New Regulatory Scope

In June of this year, the U.S. Senate passed the "GENIUS Act" ("Guidance and Establishment of the American Stablecoin Innovation Act") with a vote of 68 in favor and 30 against, demonstrating strong bipartisan support for stablecoin regulation. The bill is currently under second reading in the House of Representatives, which is in the process of drafting its version—the "STABLE Act" ("Stablecoin Transparency and Accountability, Promoting Better Ledger Economy Act").

Although the two chambers differ in legislative wording, their goals are largely aligned. The House version is gaining more bipartisan support, which raises expectations for a swift reconciliation process. Lawmakers plan to merge the two chamber versions into a final compromise bill by the end of the year. Given the support from the executive branch and the urgency of the issue, this timeline is considered realistic. Observers anticipate that the "GENIUS Act" will lay a structural foundation for unified legislation.

The bill creates a regulatory framework that grants federal and state governments the power to regulate dollar-backed tokens (especially those issued by non-bank entities). The bill requires full dollar reserve backing, prohibits algorithmic stablecoins, and authorizes state-chartered issuing institutions based on national standards. Critics may quibble about the customary turf wars between state-chartered issuing institutions and the Federal Reserve, but the strategic subtext cannot be ignored: this is the first step in anchoring the digital dollar within the U.S. security framework.

The New Direction of Decentralization and Dollarization in the Token Era

This is no longer a decentralized experiment in Silicon Valley. This is a re-centralized project, but this time it is achieved through code and compliance. A privately issued, regulated stablecoin backed by U.S. Treasury bonds offers something that traditional Crypto Assets can never provide: in a world where SWIFT, sanctions, and even proxy banking face increasingly intensified geopolitical friction, it has become a vehicle for the dollar's reach. If the Eurodollar is the invisible engine of post-war hegemony, then stablecoins are the programmable chassis of future hegemony.

Despite the constant criticism of President Trump by mainstream media, this is undoubtedly a brilliant move: the White House needs the depreciation of the dollar to stimulate exports while not harming global demand for U.S. Treasury bonds. Stablecoins make this balance possible.

This indecisive legislation has become a turning point. It establishes a model where the dominance of the dollar is conveyed not through bank balance sheets, but through digital wallets. It has triggered a new dollarization: faster, cheaper, unmediated by traditional institutions, and potentially unstoppable in frontier and fragile economies. For Washington, this is not a flaw, but a feature. From Argentina to Ghana to Turkey, cryptocurrency has become the informal last resort. With regulatory backing, stablecoins may become a weapon for the U.S. to informally export its collapsing monetary system, becoming a soft underbelly of power.

International Reaction: Italy Stands Out, China Advances Internationalization of the Digital Renminbi

Rome has especially seen this point clearly. Italian commentators are now openly calling for a "de-dollarization" strategy, using US-regulated stablecoins is not surrender, but a means to hedge against the decline of the euro and Europe’s irrelevance. Commodity trading advisor Gianclaudio Torlizzi bluntly stated: "Stablecoins are the perfect solution: they are pegged to the dollar, allowing local currencies to float freely, eroding the monetary sovereignty of governments, and becoming a financial Trojan horse." Torlizzi's stance is not ideological, but realistic. When your central bank is bound by fiscal orthodoxy and political rigidity, outsourcing trust to the dollar may seem prudent rather than surrender.

Its impact extends far beyond the financial sector. In an increasingly antagonistic world, China is racing to advance the internationalization of its digital yuan and is constructing a payment framework through BRICS partnerships. A stablecoin ecosystem, which is subject to sanctions and regulations, provides the U.S. with a countermeasure that does not require troop increases or treaty signings. This is a monetary containment strategy that does not make Washington a prisoner of global liquidity, but rather an indispensable builder of it.

The Irony of Regulatory Paralysis and Currency Assimilation in Europe

In contrast, European regulators are still caught in protectionist thinking. The EU's Crypto Assets Market (MiCA) regime was once hailed as a groundbreaking initiative in Brussels, but it has since become outdated. Its design is filled with preventive measures and bureaucratic sluggishness, reflecting a broader malaise: the mistaken belief that legal provisions serve as leverage. Europe views stablecoins as a threat to monetary sovereignty rather than a tool for strategic coordination, which not only cedes ground to American companies but also to American governance strategies.

Ironically, crypto assets were supposed to replace the power of fiat currency. However, it may have actually solidified the position of the strongest fiat currency. The stablecoin bill not only regulates tokens; it also conscripts them. For the United States, this is not financial easing, but monetary assimilation.

The stablecoin regulation bill passed by the U.S. Senate is not only a milestone in the field of Crypto Assets but also a clear signal of the United States using stablecoins as a new diplomatic tool in its global financial strategy. This bill aims to anchor the digital dollar within the U.S. security framework through compliance and re-centralization, and to promote a new process of dollarization globally. This "coin control" game will profoundly affect the global monetary system and geopolitical landscape.