4E: Federal Reserve Board member warns of risks of Bitcoin-backed stablecoins; stablecoins may become the next engine for crypto growth

ChainCatcher news reports that according to 4E observations, Federal Reserve Governor Michael Barr warned that the newly passed GENIUS Act could allow stablecoins to use Bitcoin as a reserve asset, potentially undermining their stability. Barr noted that while the act does not directly support Bitcoin reserves, "any medium of exchange adopted by foreign governments" or considered a qualified asset could make El Salvador's case a potential loophole.

Citibank's latest report pointed out that stablecoins could become the core driving force for the next growth phase in the crypto market, as they possess "dollar value storage" capabilities in emerging markets with high inflation or weak financial systems. However, this could also trigger policy responses from some countries to limit dollarization.

Additionally, Strategy announced the purchase of 168 Bitcoin again, costing approximately $18.8 million, bringing their total holdings to 640,400 BTC.

Crypto analyst Willy Woo stated that the current market rally is driven by long-term spot investors, and if their liquidity begins to wane, market sentiment may quickly turn bearish.

4E reminds investors: Regulatory guidance and structural capital flows in the market are becoming key variables for the market trend, and short-term volatility may be amplified by macro signals and institutional behavior. It is advised to continuously monitor regulatory dynamics and changes in liquidity structure.