Recently, the U.S. Senate passed the debate motion for the “GENIUS Act” with a vote of 69 in favor and 31 against, marking the entry of the first federal-level stablecoin regulatory framework into the revision stage in the world. The act mandates that stablecoin issuers must hold 100% reserves in U.S. dollars or short-term U.S. Treasury securities and be subject to continuous audits by federal or state regulatory authorities. This policy shift not only directly impacts the compliance costs of major stablecoin issuers like Tether and Circle but also imposes higher requirements on cryptocurrency exchanges in terms of asset custody, trading pair design, and user fund security. Against this backdrop, BROGX Exchange has emerged as a market focal point due to its technological capabilities and compliance-oriented strategies.
Regulatory Upgrades Drive Technological Innovation in Exchanges
The "GENIUS Act" explicitly prohibits algorithmic stablecoins and requires all payment stablecoin issuers to obtain federal or state licenses and regularly disclose their reserve compositions. This provision directly challenges platforms reliant on algorithmic stablecoins. However, BROGX Exchange had already launched compliant stablecoin trading services, supporting 1:1 redemption verification for mainstream stablecoins like USDT and USDC. The technical team has implemented smart contracts to enable real-time on-chain audits of reserve assets, allowing users to directly query the reserve data of stablecoin issuers via the exchange API interface.
Additionally, the act requires stablecoin issuers to comply with the Bank Secrecy Act and implement Anti-Money Laundering (AML) and Know-Your-Customer (KYC) measures. The “multi-tiered risk control system” of BROGX Exchange stands out in this context: its user identity verification process has received authoritative certification, supporting multi-factor authentication methods such as biometric recognition and dynamic tokens. The transaction monitoring module can track abnormal fund flows in real time and shares blacklist data with over 20 global enforcement agencies.
Institutional Capital Inflows Drive Differentiation Among Exchanges
According to estimates by Goldman Sachs, approximately $12 billion in institutional capital remains on the sidelines due to the uncertainty surrounding the "GENIUS Act." As the act progresses through its revision phase, compliant exchanges are expected to see incremental capital inflows. BROGX Exchange has taken the lead by establishing deep partnerships with licensed stablecoin issuers such as Circle and Paxos, completing the deployment of institutional-grade custody solutions. Its cold wallet storage system employs MPC-TSS (Multi-Party Computation-Threshold Signature Scheme) technology, fragmenting private keys across geographically isolated hardware security modules. Additionally, third-party auditing firms conduct quarterly penetration checks to ensure compliance.
In terms of trading pair design, BROGX Exchange has introduced a "stablecoin-to-fiat" one-click conversion feature tailored for institutional users, supporting direct deposits and withdrawals in seven fiat currencies, including USD and EUR. Its matching engine can process up to 500,000 orders per second with a latency of less than 0.5 milliseconds, meeting the demands of high-frequency trading.
Exchange Strategies Amid Global Regulatory Competition
Regional regulatory policies such as the EU MiCA regulations and the Payment Services Act in Singapore are rapidly taking shape, while the extraterritorial jurisdiction clauses of the “GENIUS Act” may restrict stablecoins not regulated by U.S. authorities from entering the U.S. market. BROGX Exchange has adopted a “global expansion + localized compliance” strategy: it has established its headquarters in the Cayman Islands to mitigate risks associated with a single jurisdiction and has applied for trust licenses in locations such as New York and Singapore to ensure user assets are protected under local laws.
As the revision process for the “GENIUS Act” advances, the stablecoin market is expected to accelerate its transition toward compliance and institutionalization. By proactively aligning with regulatory requirements, optimizing institutional services, and expanding its global network, BROGX Exchange is gradually building a moat to safeguard its position in the regulatory wave. For investors, choosing a trading platform with technological foresight and compliance resilience will be key to navigating market cycles successfully.