KEYTAKEAWAYS
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The GENIUS Bill advances in U.S. Senate, establishing stablecoin regulations that clarify asset backing requirements and regulatory jurisdiction.
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Story and MUSIC launch AI-powered "Bangers" tool for music creation and on-chain tokenization with built-in royalty sharing.
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Hong Kong passes Stablecoin Bill, creating licensing framework for fiat-backed stablecoins to operate under HKMA supervision starting 2025.
CONTENT
GENIUS BILL MOVES TO SENATE REVIEW, STABLECOIN RULES TAKE SHAPE
On May 20, 2025, the U.S. Senate voted 69–31 to start debate on the “Guiding and Establishing National Innovation for U.S. Stablecoins Act” (GENIUS Bill).
This means the bill moves into a full Senate review and revision stage. The GENIUS Bill asks stablecoin issuers like Circle (USDC) to back their tokens with liquid assets such as U.S. dollars or Treasuries and to publish regular audit reports.
It also clearly states that payment stablecoins are not securities or commodities, reducing overlapping regulation by the SEC and CFTC.
Analysis:
The bill gives stablecoin projects a clearer legal path, which is positive for major issuers like USDC. It could boost trading volume on exchanges and on-chain in the short term.
The upcoming revision stage (starting May 22) is important—changes to the bill could affect compliance costs and room for innovation.
The final vote is expected between June and August. Watch for progress and changes in the bill’s details to better plan for regulatory impacts.
STORY AND MUSIC LAUNCH AI TOOL “BANGERS” FOR MUSIC MINTING
Programmable IP platform Story has partnered with AI music platform MUSIC to launch a new feature called Bangers. Users can tag @musicbyvirtuals in a post with a text prompt, and the AI will generate music or a music video.
Story then helps register and tokenize the content on-chain. Each Banger token includes a 1% transaction fee that goes to the original IP creator, artists, and promoters. Story supports copyright protection and revenue sharing on-chain.
Analysis:
Bangers combines social media, AI music creation, and blockchain, lowering the barrier for users to create and share music IP. Story’s tech helps protect rights, but legal and copyright issues could still arise.
The idea has strong potential as AI music grows, especially if MUSIC can improve AI quality and user rewards. Watch their tweet engagement and NFT trading data to see how well Bangers performs in the market.
HONG KONG APPROVES STABLECOIN BILL, LICENSES COMING IN 2025
On May 21, 2025, Hong Kong lawmaker Johnny Ng posted on X that the city’s Legislative Council has passed the “Stablecoin Bill” after a third reading.
By the end of 2025, companies will be able to apply for licenses from the Hong Kong Monetary Authority (HKMA) to issue stablecoins.
The law requires that any stablecoin backed by fiat currency (like USD or HKD) or claiming to be pegged to the HKD must get official approval from the HKMA.
Analysis:
This new law gives global stablecoin issuers like Circle and Tether a clear path to enter Hong Kong legally. The city is aiming to become a hub for regulated stablecoins in Asia.
USDC may grow faster in Hong Kong due to its compliance strengths. However, stablecoins pegged to the HKD may face limited demand and market challenges.
Keep an eye on future announcements from the HKMA and which companies apply for the first licenses.
