U.S. Regulator's "GENIUS" Plan Threatens Crypto Stablecoin Model: SEC Scrutiny Intensifies

A major U.S. financial regulator has introduced a new analytical framework, internally dubbed "GENIUS," casting significant doubt on the regulatory future of the crypto sector's stablecoin model. The initiative, spearheaded by the Securities and Exchange Commission (SEC), aims to systematically assess whether certain stablecoin operations constitute unregistered securities offerings. This move represents a direct challenge to the foundational premise of many stablecoins—that they are mere digital dollars or payment tokens. Industry experts warn that the "GENIUS" pitch could lead to aggressive enforcement actions, potentially destabilizing key projects and creating compliance hurdles for major players in the decentralized finance (DeFi) and cryptocurrency ecosystem. The regulatory scrutiny focuses on the governance, yield-generation mechanisms, and promotional activities surrounding stablecoin issuers.