TechFlame, according to DL News, the “Genius Act” passed by the US Senate is drawing attention from banks and the legal community. The bill gives stablecoin holders priority claims over their backing assets in the event of bankruptcy, potentially putting traditional banks and other customers at risk. Georgetown University law professor Adam Levitin warned that this arrangement essentially “subsidizes stablecoin issuance at the expense of bank deposits” and could harm the interests of ordinary bank customers, particularly when the stablecoin issuer or its custodian bank goes bankrupt. The current version of the bill stipulates that stablecoins must be backed by highly liquid assets (such as US Treasury bonds), that issuers are required to disclose reserves every month, and have the ability to freeze tokens. If approved, banks and other entities will be able to issue compliant stablecoins. The bill is currently awaiting review by the US House of Representatives. Although it aims to enhance user confidence and strengthen the connection between stablecoins and the actual financial system, its bankruptcy processing priority design has also sparked discussions on regulatory logic, financial stability, and potential interbank benefit distribution. Some industry insiders said that the bill could become a turning point in the development of stablecoins, while also heightening concerns about the impact on the traditional financial system.