Draft stablecoin bill: Policy mistakes and potential risks Recently, the draft stablecoin bill may prohibit non US stablecoins such as Tether from entering the US market, which could be a major mistake. The vitality of the US dollar as a global reserve currency lies in its export to overseas markets, rather than its contraction back into the domestic market. The mandatory requirement for all stablecoins denominated in US dollars to transfer deposits to US banks ignores the "Triffin Dilemma" - the risk of inflation caused by excessive currency inflows. Market preference for non US stablecoins In markets such as Asia, Africa, and Latin America, USDT is the preferred stablecoin, while stablecoins issued outside the United States are often seen as more autonomous, avoiding potential risks in the US banking system. Many users choose stablecoins because their country's monetary policy is unstable, and they want to use the US dollar but do not want to be exposed to the US financial system. This preference existed even before Tether disclosed its reserve audit. The potential impact of the ban 1. Prohibit the issuance of non US stablecoins in the United States: Reasonable, stablecoins issued in the United States should be subject to US regulation. 2. Prohibit the "use" of unregistered stablecoins: may restrict payments, transactions, etc., bring international negative effects, and be difficult to enforce. 3. Restrict financial service cooperation with US entities: Tether and others may sell more than US $100 billion of US treasury bond bonds. Any form of ban may backfire: -Weakening global dollar liquidity, increasing transaction costs, and harming user interests. -Increasing domestic inflation risk, as the return of the US dollar may push up domestic loan supply. -Geopolitical risk: Foreign competitors may launch stablecoins backed by assets such as gold and renminbi, weakening the position of the US dollar. Better solutions By amending the Stablecoins Act to create exemption clauses for foreign issued stablecoins, allowing them to operate, trade, and use in the United States, but clearly labeling them as "high-risk" alternatives, distinguishing them from stablecoins regulated in the United States. This exemption can: -Encourage global innovation to meet the demand for offshore US dollars. -Enhance the global use of the US dollar to avoid inflationary pressures. -Maintain market competition and allow consumers to choose based on transparent risk disclosure. By allowing stablecoins such as Tether to coexist under regulation, the United States can consolidate the global position of the US dollar, prevent inflation risks, and promote global fintech innovation.