The U.S. Senate just passed a major bill to regulate stablecoins. This is the first time the government has created clear rules for how digital dollar coins should work. It is a big step forward for the crypto world, and it could help boost trust in stablecoins like USTC, which is part of the Terra Classic blockchain.
What Did the U.S. Senate Do?
The Senate approved a bill called the GENIUS Act, which creates new laws for stablecoins. These are digital tokens that try to match the value of the U.S. dollar. The goal is to make payments faster and safer using blockchain.
Under the new law:
All stablecoins must be backed 100% by cash or government bonds.
Companies must be open about their reserves with regular reports.
Strong protections are required for users, including clear rules for getting your money back.
This means only stablecoins that follow strict standards can be used legally in the United States.
Why This Matters for USTC
USTC (TerraClassicUSD) is the stablecoin of the Terra Classic blockchain. It was once one of the most used stablecoins before its crash in 2022. Since then, the Terra Classic community has been working to rebuild trust and utility.
Now that the U.S. has new laws for stablecoins, USTC could play a bigger role again—if it aligns with the new rules.
Here’s why this could be important:
Clear regulation helps USTC gain trust again. One of the biggest problems for USTC in the past was lack of confidence. New U.S. rules could make users feel safer using stablecoins, including USTC, if it becomes compliant.
More demand for stablecoins. As more businesses and investors look for regulated options, they might also explore stablecoins from active blockchains like Terra Classic.
A chance to rebuild USTC as a real U.S. dollar–backed token. If the Terra Classic community can fully back USTC with real reserves, it may open doors to larger markets.
What the Terra Classic Community Can Do
For USTC to benefit from this change, the community needs to take action:
Push for full reserve backing. This means rebuilding USTC so each coin is backed 1-to-1 with U.S. dollars or secure assets.
Add transparency. USTC must provide proof of reserves to meet the new legal standards.
Build safe tools and apps. User-friendly wallets and platforms will help beginners trust and use USTC with confidence.
Looking Ahead
This new U.S. law is a turning point. It shows that stablecoins are no longer just a crypto experiment. They are becoming part of the real financial system.
If Terra Classic developers and the community step up, USTC could become one of the few decentralized stablecoins to meet the new standards. That would not only restore its reputation but also give Terra Classic a stronger future.
The next few months will be important. As U.S. regulators begin enforcing the rules, stablecoins that meet the standard will lead the market. USTC has a second chance. Now it is up to the community to make it happen.