[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  0xThienNhan [@thiennhandk](/creator/twitter/thiennhandk) on x XXX followers Created: 2025-07-20 02:15:57 UTC My biggest concern these days is how @ethena_labs USDE and more specifically sUSDE are impacted by GENIUS? Some points: > Prohibition on Algorithmic Stablecoins: The GENIUS Act explicitly prohibits algorithmic stablecoins from being classified as "payment stablecoins," even if they claim 1:1 backing. > Reserve Requirements for "Payment Stablecoins": For stablecoins that do qualify as "payment stablecoins," the Act mandates XXX% reserve backing with liquid assets (U.S. dollars, short-term U.S. Treasury obligations, bank deposits, or balances held at the Federal Reserve) > Prohibition on Yield/Interest for "Payment Stablecoins": The Act prohibits permitted issuers of "payment stablecoins" from offering any interest or yield to holders. Questions: > Due to its synthetic, delta-neutral hedging mechanism and yield-generating nature, USDE does not fall under the GENIUS Act's definition of a "payment stablecoin.", does it? > If it isn't, it would be good or bad in long term and short term. If it isn't: >> Short-term: Potentially positive, as it allows USDE to continue offering yield where regulated "payment stablecoins" cannot >> Long-term: The exclusion from the Act's "payment stablecoin" definition is still not good for the development? Note: I'm an $ENA holder, and the price is good these days.  XXX engagements  **Related Topics** [stablecoins](/topic/stablecoins) [susde](/topic/susde) [usde](/topic/usde) [ethenalabs](/topic/ethenalabs) [Post Link](https://x.com/thiennhandk/status/1946755930810675262)
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0xThienNhan @thiennhandk on x XXX followers
Created: 2025-07-20 02:15:57 UTC
My biggest concern these days is how @ethena_labs USDE and more specifically sUSDE are impacted by GENIUS? Some points:
Prohibition on Algorithmic Stablecoins: The GENIUS Act explicitly prohibits algorithmic stablecoins from being classified as "payment stablecoins," even if they claim 1:1 backing.
Reserve Requirements for "Payment Stablecoins": For stablecoins that do qualify as "payment stablecoins," the Act mandates XXX% reserve backing with liquid assets (U.S. dollars, short-term U.S. Treasury obligations, bank deposits, or balances held at the Federal Reserve)
Prohibition on Yield/Interest for "Payment Stablecoins": The Act prohibits permitted issuers of "payment stablecoins" from offering any interest or yield to holders.
Questions:
Due to its synthetic, delta-neutral hedging mechanism and yield-generating nature, USDE does not fall under the GENIUS Act's definition of a "payment stablecoin.", does it?
If it isn't, it would be good or bad in long term and short term. If it isn't:
Short-term: Potentially positive, as it allows USDE to continue offering yield where regulated "payment stablecoins" cannot Long-term: The exclusion from the Act's "payment stablecoin" definition is still not good for the development?
Note: I'm an $ENA holder, and the price is good these days.
XXX engagements
Related Topics stablecoins susde usde ethenalabs