On August 27, the recently signed "Genius Act" has sparked widespread discussion in financial markets. Analyst Lynette Zang suggests that this legislation could be a crucial step toward bringing stablecoins into the mainstream and ultimately triggering hyperinflation. She believes this move represents not only a major adjustment to the financial system but could potentially become the catalyst for a global monetary reset. Market observers note that such institutional changes could indeed accelerate the evolution of traditional monetary systems through stablecoin mechanisms, while the underlying inflation and liquidity risks warrant heightened vigilance.

Meanwhile, economic data shows clear divergence. Markets experienced a brief rebound following the Federal Reserve's dovish pivot at the Jackson Hole symposium, but credit card delinquency rates have reached historic highs. Zang indicates that the public may be misled by "official statistics," a phenomenon common at the end of monetary cycles. She points out that when citizens massively convert bank deposits into corporate-issued stablecoins under the new legislation, funds are withdrawn from the traditional banking system, leading to insufficient lendable funds for banks and essentially creating a deflationary shock. Zang believes the ultimate response will still be "money printing," which means the monetary environment will become further complicated. Market analysts suggest that while this logic may seem extreme, it is not without realistic possibility given the market's high dependence on liquidity.

Furthermore, Zang emphasizes data transparency issues. She believes recent personnel changes at the Bureau of Labor Statistics and continuous downward revisions to employment data indicate that markets may be operating in a "data fog." More critically, the U.S. Treasury market, a cornerstone of the global financial system, is showing cracks: official data reveals that overseas holdings have decreased by over $300 billion in the past year. Zang warns that this represents the loss of traditional buyer groups such as central banks. Financial experts note that if this trend continues, it could indeed amplify market concerns about sovereign credit and affect global financial stability.

At the banking system level, Zang compares it to a "massive casino" dependent on the fragile balance of vast derivatives markets. According to data from the Office of the Comptroller of the Currency (OCC), the notional derivatives exposure of just the top four U.S. banks exceeds $180 trillion. If such leveraged risks were triggered, the impact could far exceed that of the 2008 crisis. Facing such structural vulnerabilities, Zang maintains that only physical precious metals represent true safe haven assets. She even anticipates possible global gold confiscation actions in the future. Financial analysts believe that while this assessment leans toward the extreme, in high-risk environments, investors' asset allocation indeed requires stronger safety buffers, and precious metals may play an important role in long-term asset preservation.

Overall, the "Genius Act" and institutional designs surrounding stablecoins may become important turning points for the future financial system. Market participants should focus not only on short-term liquidity fluctuations but also on long-term systemic risks, including bond market pressure, banking vulnerabilities, and the struggle between inflation and deflation. Under this landscape, prudent asset allocation and risk diversification strategies will be more important than ever before.