US Pushes GENIUS Act for Stablecoin Regulation as China Expands Digital Yuan

In a significant development in the global digital currency landscape, the United States and China are taking divergent yet decisive steps to shape the future of digital finance. In Washington, President Donald Trump has called on lawmakers to urgently pass the GENIUS Act, a stablecoin-focused bill aimed at securing US leadership in digital asset regulation. This legislation, which has already cleared the Senate, mandates 1:1 reserve backing, enforces Anti-Money Laundering (AML) standards, and restricts how stablecoin issuers may deploy reserves. These provisions aim to boost transparency, reduce systemic risk, and position the United States as a global hub for regulated digital dollar assets.

Trump's push for the GENIUS Act comes at a time when China is aggressively expanding its central bank digital currency (CBDC), the digital yuan. In Beijing, China’s central bank governor Pan Gongsheng announced the establishment of a new international operations center for the digital yuan, signaling the country’s ambition to expand its CBDC globally and promote a more diversified monetary system. This move is part of China’s long-term vision for a multipolar monetary system, which aims to reduce reliance on the US dollar and offer a payments infrastructure resistant to sanctions.

The GENIUS Act, if passed, will allow businesses and individuals to send payments nearly instantly, replacing outdated, multi-day settlement systems. Proponents argue that this legislation is essential not just for domestic innovation but for maintaining the global supremacy of the US dollar in a digital-first financial future. With countries like China aggressively piloting state-controlled digital currencies, US lawmakers and industry leaders see dollar-backed stablecoins as a counterbalance to centralized alternatives.

Despite bipartisan support in the Senate, the GENIUS Act has faced political friction. Critics, including Senator Elizabeth Warren, have raised concerns over Trump’s close ties to the cryptocurrency sector and the potential financial benefits his inner circle could gain from the bill. However, other Democrats, such as Senator Mark Warner, have acknowledged the need for the US to stay competitive in the rapidly evolving digital asset space.

Meanwhile, China’s push to expand the digital yuan is part of a broader strategy to position the e-CNY as both a domestic financial innovation and a geopolitical counterweight to the US dollar’s longstanding global dominance. The creation of an international operations center for the digital yuan in Shanghai is a tangible step toward making e-CNY a serious player in global finance. This move highlights China’s confidence in its years-long CBDC development cycle and its strategic positioning of the e-CNY as a neutral and resilient foundation for global trade and financial interactions.

The push-and-pull between stablecoins and CBDCs represents a broader contest between decentralized financial innovation and centralized control. While stablecoins offer borderless, market-driven alternatives to traditional fiat, they are often seen as vehicles for dollar dominance. CBDCs, meanwhile, are tightly controlled by central banks and designed to reinforce sovereign monetary authority. China’s move to internationalize the digital yuan has deep strategic implications, potentially reducing the reliance of regional trade partners on the US dollar and offering a payments infrastructure resistant to sanctions.

By establishing a multipolar currency vision, China is sending a clear message: the era of single-currency dominance is fading, and digital tools like e-CNY will help shape the next chapter of international finance. As the US and China take these divergent steps, the global race to shape the future of digital currency is gaining momentum, with each country aiming to secure its position in the rapidly evolving digital finance landscape.