The U.S. Congress is advancing the GENIUS Act, a framework aimed at establishing a regulated digital dollar, which could redefine Bitcoin's role in the financial ecosystem. The Act, supported by the White House and Treasury, focuses on payment stablecoins, reserve backing, and consumer protection, positioning dollar-backed stablecoins as a strategic innovation in payments. This move aligns with the U.S. government's goal to extend the dollar's reach and support demand for Treasuries through digital means. As the U.S. builds a legal and tax framework favoring stablecoins for everyday transactions, Bitcoin's role is increasingly seen as a scarce, reserve-like asset rather than a transactional currency. The Office of the Comptroller of the Currency (OCC) has proposed rules to operationalize this framework, signaling institutionalization and legal clarity for stablecoins. Meanwhile, Bitcoin retains its appeal as a scarce asset outside sovereign control, but its potential as a mainstream transactional currency is diminishing under current U.S. policy directions.