4E: Federal Reserve governor warns of bitcoin reserve stablecoin risk; stablecoins could become the next round of crypto growth engine

On October 21st, according to 4E Watch, Federal Reserve Governor Michael Barr (Michael Barr) warned that the newly passed GENIUS bill could allow stablecoins to use Bitcoin as a reserve asset, thereby undermining their stability. Barr pointed out that although the bill does not directly support Bitcoin reserves, "any medium of exchange adopted by a foreign government" may be considered a qualified asset, which may make El Salvador's case a potential loophole.
According to a recent report by Citibank, stablecoins could become the core driver of the next growth phase of the crypto market, with a "store of dollar value" in emerging markets with high inflation or weak financial systems. However, this could also trigger a policy response in some countries to limit dollarization.
In addition, Strategy announced the purchase of 168 more bitcoins at a cost of about $18.80 million, raising the total holdings to 640,400 BTC.
Crypto analyst Willy Woo said the current round is being driven by long-term spot investors, and if their liquidity starts to wane, market sentiment could quickly turn bearish.
4E reminds investors that regulatory orientation and market structural capital flows are becoming key variables in the market, and short-term fluctuations may be amplified by macro signals and institutional behavior. It is recommended to continue to pay attention to regulatory dynamics and liquidity structure changes.