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Tether Unveils its USA₮ U.S.-Regulated Dollar-Backed Stablecoin (Tether)
Tether Unveils its USA₮ U.S.-Regulated Dollar-Backed Stablecoin (Tether)
Tether will issue a new U.S.-regulated stablecoin called USAT, designed to comply with the GENIUS Act. The token, to be issued by Anchorage Digital and leveraging Tether’s proprietary Hadron tokenization platform, is expected to launch by year’s end and will focus on use cases distinct from Tether’s existing USDT. The move marks a major expansion of Tether’s presence in the U.S., following its recent efforts to comply with anti-money laundering and audit requirements. [Source: Tether]
#CryptoAssets#Regulation#Stablecoins#Tether#UnitedStates#Fintech
·tether.io·
Tether Unveils its USA₮ U.S.-Regulated Dollar-Backed Stablecoin (Tether)
ING Said to Be Working on a New Stablecoin With Other TradFi and Crypto Firms (Coindesk)
ING Said to Be Working on a New Stablecoin With Other TradFi and Crypto Firms (Coindesk)
[April 12, 2025] Dutch bank ING is reportedly developing a stablecoin in collaboration with other banks and crypto service providers, aiming to leverage the new European cryptocurrency regulations under the Markets in Crypto Assets (MiCA) regime. This project could take a consortium form, but progress is slow due to the need for board approvals at multiple institutions. ING’s entry would mean new competition for Société Générale, which already offers a euro stablecoin, and reflects broader institutional interest following regulatory clarity in Europe. [Source: Coindesk]
#CryptoAssets#Stablecoins#Europe#DFC
·coindesk.com·
ING Said to Be Working on a New Stablecoin With Other TradFi and Crypto Firms (Coindesk)
Retailer Stablecoins (David Birch)
Retailer Stablecoins (David Birch)
David Birch posted an article that discusses how major retailers like Walmart and Amazon are exploring issuing their own stablecoins to bypass traditional payment systems and reduce transaction fees, potentially threatening banks' role in payments. Walmart, a key example, has already integrated real-time bank-to-bank payments via its OnePay app and is pushing for faster, instant payments to cut costs and enhance customer experience. The piece notes that retailers, with their massive scale, could benefit from lower payment processing fees and may use stablecoins or direct pay-by-bank methods, with broader adoption spurred by systems like FedNow. It also highlights retailers’ broader fintech ambitions—such as AI shopping assistants, metaverse initiatives, and enabling global transactions for small businesses—arguing these may reshape retail and loyalty. For banks, the article warns that stablecoins could draw deposit funds away, with significant consumer balances already moving to fintech accounts and app wallets, and suggests banks must shift to offering value-added services around identity and data rather than relying on shrinking transaction margins. [Source: David Birch]
#Amazon#Walmart#Fintech#Stablecoins#DFC
·dgwbirch.substack.com·
Retailer Stablecoins (David Birch)
Federal Reserve Board Payments Innovation Conference (FRB)
Federal Reserve Board Payments Innovation Conference (FRB)
The U.S. Federal Reserve Board (FRB) will host a conference on payments innovation on October 21, 2025, to bring together a range of interested parties to discuss how to further innovate and improve the payments system. The conference will feature panel discussions on the convergence of traditional and decentralized finance, emerging stablecoin use cases and business models, the intersection of artificial intelligence and payments, and the tokenization of financial products and services. [Source: FRB]
#Fintech#Payments#UnitedStates#CentralBanking#DFC#DeFi#Tokenization#AI
·federalreserve.gov·
Federal Reserve Board Payments Innovation Conference (FRB)
ECB President Calls to Address Risks from Non-EU Stablecoins (Cointelegraph)
ECB President Calls to Address Risks from Non-EU Stablecoins (Cointelegraph)
European Central Bank (ECB) President Christine Lagarde called for stronger regulation of non-EU stablecoins, warning that gaps in oversight could threaten European Union (EU) financial stability. The EU’s Markets in Crypto-Assets Regulation (MiCAR) addresses some of these risks by requiring stablecoin issuers to allow redemption at par value and to hold substantial bank reserves. However, there are gaps, especially with multi-issuer stablecoins involving both EU and non-EU entities. In such cases in the event of a run, investors would naturally prefer to redeem in the jurisdiction with the strongest safeguards, which is likely to be the EU, where MiCAR also prohibits redemption fees. But the reserves held in the EU may not be sufficient to meet such concentrated demand. She calls for stronger, coordinated international regulatory safeguards to prevent regulatory arbitrage and ensure stability. https://www.ecb.europa.eu/press/key/date/2025/html/ecb.sp250903~10647505c7.en.html
#Stablecoins#Regulation#Europe#ECB#Fintech#DFC#FinancialStability
·cointelegraph.com·
ECB President Calls to Address Risks from Non-EU Stablecoins (Cointelegraph)
Stablecoins are not the future of international payments
Stablecoins are not the future of international payments
The Banker published an article by Ousmene Mandeng that contends that stablecoins are unlikely to become the standard for international payments due to their inability to pay interest, exposure to issuer and credit risks, and a lack of proven efficacy in cross-border settlements. Instead, it advocates for tokenised money market fund shares as a superior alternative. These blockchain-based instruments offer direct claims on underlying assets, reduced risks, and regular interest payments, making them safer and more efficient for foreign exchange and international payment settlements. The piece concludes that while regulatory and operational changes are needed, tokenised funds are better positioned than stablecoins to meet the demands of future global payments.
#Stablecoins#Tokenization#Fintech#MMFs#Payments#DFC
·thebanker.com·
Stablecoins are not the future of international payments
Platform Money
Platform Money
The CEPR published a paper that explores how digital platforms can gain a strategic edge over traditional markets by issuing their own private digital money (such as platform tokens), enabling them to set their own rates of inflation and extract revenue via seignorage in addition to user fees. The authors use a two-sided market model to show that platform-controlled money, coupled with superior matching technology, allows platforms to attract more buyers and sellers, optimize market interactions, and potentially increase social welfare—although this depends on consumer sensitivity to inflation and technological advantages. Ultimately, the study suggests that platform money alters market competition, with platforms potentially yielding efficiency improvements but also introducing costs that require thoughtful regulation. [Source: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=5221959
#Fintech#Platforms#Money#Stablecoins#eMoney#DFC
·cepr.org·
Platform Money
The GENIUS Act is Now Law. What’s Missing? (MIT DCI)
The GENIUS Act is Now Law. What’s Missing? (MIT DCI)

The MIT Digital Currency Initiative (DCI) published a critique of the recently passed GENIUS Act, the first U.S. federal law regulating payment stablecoins. While the Act establishes redemption requirements and sets a framework for compliance, it leaves unresolved issues around maintaining stablecoin value in secondary markets, technical interoperability, and regulatory standards for security and smart contracts. The law prohibits issuers from paying interest and introduces ambiguities in its scope—especially regarding new stablecoin models and decentralized systems. Ultimately, although the GENIUS Act represents a major policy advance, unresolved policy, technical, and regulatory questions may impact both users and the future growth of stablecoins in the U.S. [Source: MIT DCI]

#CryptoAssets#Fintech#Regulation#Stablecoins#UnitedStates#DFC
·dci.mit.edu·
The GENIUS Act is Now Law. What’s Missing? (MIT DCI)
Stablecoins are Mainstream (David G.W. Birch)
Stablecoins are Mainstream (David G.W. Birch)
David G.W. Birch argues that stablecoins, especially dollar-backed tokens like USDT and USDC, have transitioned from a crypto niche to a mainstream financial tool used for global commerce, payroll, and remittances. Birch notes that stablecoins' growing role in cross-border payments and their increasing adoption by businesses have significant implications for both the private sector and public policy, especially as regulators and central banks grapple with the challenges of monetary sovereignty and the rise of public digital currencies. He advocates for nuanced regulation and recognizing stablecoins' transformative potential in the global financial system. [Source: David G.W. Birch]
#Stablecoins#Fintech#CryptoAssets#Regulation#DFC
·dgwbirch.substack.com·
Stablecoins are Mainstream (David G.W. Birch)
Stablecoins Could Increase Treasury Demand, but Only by Reducing Demand for Other Assets (Kansas City Fed)
Stablecoins Could Increase Treasury Demand, but Only by Reducing Demand for Other Assets (Kansas City Fed)
The U.S. Kansas City Fed published an article that explains that stablecoin issuers may become significant buyers of U.S. Treasury securities, but the funds used to buy stablecoins would largely come from existing sources like bank deposits. This shift could reduce banks’ capacity to lend, since stablecoin issuers do not extend traditional loans, and the increase in Treasury demand would largely offset a decrease in other asset demand, such as loans. Ultimately, the overall effect on Treasury demand will depend on what existing assets people liquidate to buy stablecoins, and while Treasury demand may rise, it will likely be at the expense of other financial assets. [Source: Kansas City Fed]
#Stablecoins#UnitedStates#Regulation#CryptoAssets#Fintech#DFC#FinancialStability
·kansascityfed.org·
Stablecoins Could Increase Treasury Demand, but Only by Reducing Demand for Other Assets (Kansas City Fed)
Crypto, Tokenisation, and the Future of Payments
Crypto, Tokenisation, and the Future of Payments
The Centre for Economic Policy Research (CEPR) published a policy paper by Stephen Cecchetti and Kermit Schoenholtz that explains how recent US government efforts aim to establish the US as a global leader in crypto and digital payments. The paper analyzes the three core digital technologies transforming finance: blockchain, distributed ledgers, and particularly tokenisation (the creation of unique, programmable digital assets). It argues that while crypto, especially stablecoins, is gaining policy support, its practical use as a payment vehicle outside of crypto niches remains limited by costs, volatility, and regulatory gaps. Tokenised deposits and money market funds from well-regulated institutions offer stronger protections, interest, and global integration, making them likely to dominate the future of digital payments. The paper warns that growing links between crypto and traditional finance could create new systemic risks and regulatory challenges, and ultimately, broad-based adoption of tokenised assets—not stablecoins—is likely to drive the next payments revolution. [Read more at the CEPR]
#Fintech#Regulation#Tokenization#Blockchain#CryptoAssets#Stablecoins#UnitedStates#DFC
·cepr.org·
Crypto, Tokenisation, and the Future of Payments
Circle Gateway: Redefining crosschain UX with a unified USDC balance (Circle)
Circle Gateway: Redefining crosschain UX with a unified USDC balance (Circle)
Circle has launched a unified cross-chain infrastructure that enables businesses to access USDC balances across multiple blockchains, without the need to pre-position funds on each chain. By combining smart contracts and an offchain attestation service, Gateway allows users to move USDC across supported chains (such as Ethereum, Arbitrum, and Base) in under 500 milliseconds, simplifying liquidity management, reducing costs, and eliminating slow multi-chain settlements. This solution is designed to streamline both user and business experience by offering chain-agnostic USDC balances, faster payments, and easier integration for wallets, custodians, payment providers, and exchanges. Read more at: https://www.circle.com/pt-br/blog/circle-gateway-redefining-crosschain-ux
#Circle#Stablecoins#CryptoAssets#Fintech#USDC#DFC
·circle.com·
Circle Gateway: Redefining crosschain UX with a unified USDC balance (Circle)
Wyoming State Launches Frontier Stable Token (FRNT)
Wyoming State Launches Frontier Stable Token (FRNT)
The Wyoming Stable Token Commission has launched the first fully-reserved, U.S. state-backed stablecoin, with reserves held in U.S. dollars and Treasuries. The Frontier Stable Token's (FRNT's) stability is fortified with a legislatively-mandated remit to achieve 2% over-collateralization. It is initially available on seven blockchains, including Ethereum, Solana, and Polygon, and will soon be accessible on major platforms such as Kraken and Rain. The Commission has partnered with LayerZero for token issuance, Fireblocks for blockchain infrastructure, Franklin Advisers for reserves management, Inca Digital for open-source intelligence and The Network Firm for audits and monthly attestations. FRNT will be made available for purchase on the Solana blockchain through Wyoming-domiciled digital asset exchange Kraken, as well as Rain’s Visa-integrated card platform on the Avalanche blockchain. https://content.govdelivery.com/accounts/WYGOV/bulletins/3ee734a
#CryptoAssets#Stablecoins#UnitedStates#Wyoming#Fintech#DFC
·coindesk.com·
Wyoming State Launches Frontier Stable Token (FRNT)
Innovative Methods To Detect Illicit Activity Involving Digital Assets
Innovative Methods To Detect Illicit Activity Involving Digital Assets
The U.S. Department of the Treasury is inviting the public to provide input on the use of innovative or novel methods, techniques, or strategies to detect and mitigate illicit finance risks involving digital assets. This notice fulfills a requirement of the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, which lists four specific technologies on which Treasury should seek comment (application program interfaces (APIs), artificial intelligence (AI), digital identity verification, and use of blockchain technology and monitoring). Consistent with the Act, the Treasury is directed evaluate and consider these tools’ effectiveness, costs, privacy implications, and implementation challenges.
#Fintech#CryptoAssets#Stablecoins#Regulation#UnitedStates#DFC
·federalregister.gov·
Innovative Methods To Detect Illicit Activity Involving Digital Assets
Circle Launching Arc Open Layer-1 Blockchain
Circle Launching Arc Open Layer-1 Blockchain
Circle announced plans to launch a new stablecoin-focused, Ethereum Virtual Machine (EVM) compatible Layer 1 blockchain called Arc, which will use USDC as its native gas token. Aimed at supporting enterprise-grade stablecoin payments, FX, and capital markets, Arc promises features like a stablecoin FX engine, rapid sub-second settlement, opt-in privacy, seamless integration with Circle’s platform, and interoperability across other partner blockchains. The public testnet for Arc is expected to go live in the fall of 2025 and a mainnet beta in 2026.
#Blockchain#Stablecoins#Fintech#Circle#DFC#USDC
·circle.com·
Circle Launching Arc Open Layer-1 Blockchain
Closing the Payment of Interest Loophole for Stablecoins
Closing the Payment of Interest Loophole for Stablecoins
The U.S. Bank Policy Institute (BPI), backed by several U.S. banking groups, implored Congress to close a loophole that could allow stablecoin holders to receive interest indirectly through affiliated exchanges, thereby evading the GENIUS Act’s ban on interest and yield. Because payment stablecoins neither fund loans like bank deposits nor operate as securities like money market funds, the BPI says they should not pay interest. They cite a Treasury estimate that up to $6.6 trillion of deposits could flow out of banks if stablecoins can offer yield, warning that such shifts would raise borrowing costs and reduce credit availability, especially during stress, unless the prohibition is extended to affiliates and distribution channels.
#Stablecoins#Regulation#UnitedStates#Fintech
·bpi.com·
Closing the Payment of Interest Loophole for Stablecoins
Paxos to Pursue National Trust Charter with the OCC
Paxos to Pursue National Trust Charter with the OCC
Paxos has filed an application to convert its New York Department of Financial Services (NYDFS) trust charter into a national trust charter under the supervision of the Office of the Comptroller of the Currency (OCC). Since 2015, the company has operated under oversight from the NYDFS when it became the first blockchain and tokenization company to be granted a limited purpose trust charter and issued the first regulated stablecoin in 2018. All Paxos-issued assets will remain fully backed by bankruptcy-remote reserves held in U.S. dollars, U.S. Treasuries, and cash equivalents, ensuring guaranteed 1:1 redemption.
All Paxos-issued assets will remain fully backed by bankruptcy-remote reserves held in U.S. dollars, U.S. Treasuries, and cash equivalents, ensuring guaranteed 1:1 redemption.
#Regulation#Stablecoins#UnitedStates#Paxos#USDP#Fintech#DFC
·paxos.com·
Paxos to Pursue National Trust Charter with the OCC
Ethena USDe Jumps to 3rd in Stablecoin Market Cap Rankings
Ethena USDe Jumps to 3rd in Stablecoin Market Cap Rankings
Ethena's USDe stablecoin has experienced remarkable growth in 2025, with its market capitalization surging to over $8.4 billion, making it the third-largest stablecoin behind USDT and USDC. USDe is a "synthetic dollar" backed by crypto-assets, and liquid staking tokens rather than currency-matched high-quality liquid assets (HQLA). When users mint USDe by depositing crypto-asset collateral, Ethena simultaneously opens an equivalent short position in perpetual futures markets, creating a delta-neutral hedge that offsets price movements in the underlying assets. The protocol generates yield through funding rates from perpetual swap positions and staking rewards on liquid ETH, which is distributed to holders of sUSDe (staked USDe). However, this mechanism carries significant risks, particularly during periods of negative funding rates in bear markets, which could erode the protocol's reserves and threaten the peg stability. https://docs.ethena.fi/ https://medium.com/@royvillanueva96/ethena-delta-hedging-and-algorithmic-stablecoins-4650da1c07a3
#CryptoAssets#DFC#Stablecoins#Ethena#USDe#Fintech
·ainvest.com·
Ethena USDe Jumps to 3rd in Stablecoin Market Cap Rankings
Regulating Stablecoins: Comparing MiCAR and the GENIUS Act
Regulating Stablecoins: Comparing MiCAR and the GENIUS Act
A forthcoming Texas A&M University School of Law Legal Studies Research Paper compares the European Union’s MiCAR and the U.S. GENIUS Act approaches to regulating stablecoins. Both embody contrasting regulatory philosophies for stablecoin oversight. MiCAR establishes a dual categorization of stablecoins—asset-referenced tokens (ARTs) and e-money tokens (EMTs)—with tailored regimes for each, emphasizing comprehensive conduct obligations, strict liability for misleading disclosures, mandatory asset segregation, and strong, statutory redemption rights applicable to all holders. In contrast, the GENIUS Act defines a single “payment stablecoin” category, prioritizing operational requirements and, most distinctively, providing unprecedented legal protections in bankruptcy: it grants all holders statutory standing, excludes reserves from the bankruptcy estate, and gives stablecoin holder claims super-priority over all other creditors. While MiCAR relies on strict consumer protection rules and regulatory controls, the GENIUS Act centers its strongest protections around insolvency outcomes and allows for the development of additional consumer safeguards through future rulemaking, resulting in two robust but philosophically distinct approaches to stablecoin regulation.
#CryptoAssets#Regulation#Stablecoins#Europe#UnitedStates#Fintech
·papers.ssrn.com·
Regulating Stablecoins: Comparing MiCAR and the GENIUS Act
SEC Offers Stopgap Stablecoin Accounting Clarity
SEC Offers Stopgap Stablecoin Accounting Clarity
The U.S. Securities and Exchange Commission (SEC) has reportedly introduced updated staff guidance aimed at providing accounting clarity for stablecoins. It is expanding its initial crypto accounting rules, allowing certain U.S. dollar-pegged stablecoins to be treated as cash equivalents if they come with a guaranteed redemption right. This move is part of the SEC’s broader efforts, under Chair Paul Atkins, to relax previous restrictive policies and encourage traditional lenders to enter the crypto market, while the commission develops more comprehensive regulations for crypto securities.
#CryptoAssets#Stablecoins#Regulation#Accounting#UnitedStates#DFC
·news.bloomberglaw.com·
SEC Offers Stopgap Stablecoin Accounting Clarity
The GENIUS Act Foreign Issuer Loophole
The GENIUS Act Foreign Issuer Loophole
[April 18, 2025] The Atlantic Council published a critique by Timothy Assad and others of the GENIUS Act's foreign issuer loophole , as it fails to adequately regulate offshore stablecoin issuers like Tether, the largest issuer of dollar-pegged stablecoins. While both bills require domestic stablecoin issuers to obtain licenses and comply with strict prudential requirements including full reserve backing and capital requirements, the GENIUS Act imposes virtually no restrictions on offshore-issued stablecoins that flow back into the US market, requiring only that issuers maintain basic law enforcement cooperation powers that most already possess. This creates a regulatory arbitrage that disadvantages US issuers, incentivizes companies to incorporate offshore to avoid stricter US regulations, and undermines the administration's stated goals of promoting US financial technology leadership and protecting dollar dominance. The STABLE Act attempts to address this through an eighteen-month grace period requiring offshore issuers to be subject to comparable foreign supervision, but this approach lacks clear enforcement mechanisms and still permits stablecoin use without custodial intermediary involvement, making it inadequate to close the regulatory gap.
#CryptoAssets#Regulation#Stablecoins#UnitedStates#Fintech#DFC
·atlanticcouncil.org·
The GENIUS Act Foreign Issuer Loophole
Stablecoins thrive on regulation but is that enough?
Stablecoins thrive on regulation but is that enough?
OMFIF published a critique of current stablecoin regulation by Ousmène Mandeng, focusing particularly on the U.S. Genius Act and Europe’s MiCA regime. The article argues that while these frameworks grant stablecoins legitimacy and encourage innovation, they risk undermining regulatory consistency by allowing fragmentation and regulatory arbitrage—particularly where ease of transfer mimics bearer instruments, potentially weakening compliance safeguards and bypassing traditional oversight regimes. Mandeng stresses that the true innovation of stablecoins lies in blockchain programmability and composability, rather than speed per se, since traditional banks already process payments rapidly. Yet new regulatory approaches may distort competition if stablecoins aren’t mapped into existing regulated categories like banks or e‑money institutions, thereby violating the principle of “same risk, same activity, same regulation”. The article concludes that regulation is necessary and foundational—but unless it adheres to established regulatory logic and is harmonized across jurisdictions, it may create new systemic risks, erode compliance frameworks, and breed unintended consequences.
#Fintech#Regulation#Stablecoins#CryptoAssets#DFC
·omfif.org·
Stablecoins thrive on regulation but is that enough?
Currency Dominance in the Digital Age
Currency Dominance in the Digital Age
Project Syndicate published an article by Hélène Rey that argues that the traditional foundations of monetary power are undergoing fundamental transformation as digital technologies become the primary infrastructure for money movement. While the US dollar has maintained global supremacy for over 80 years through America's economic scale, institutional credibility, liquid financial markets, geopolitical influence, and network effects, Rey contends that data integrity is emerging as a new critical variable that will reshape the global monetary order. The article suggests that as digital assets and technologies increasingly determine how currencies function and compete, the resilience and credibility of monetary systems will depend less on traditional economic factors and more on the integrity and security of underlying technological infrastructure, with significant implications for both financial stability and geopolitical power dynamics.
#CBDC#CryptoAssets#Fintech#Stablecoins#DFC
·project-syndicate.org·
Currency Dominance in the Digital Age
President’s Working Group on Digital Asset Markets Recommendations to Strengthen American Leadership in Digital Financial Technology
President’s Working Group on Digital Asset Markets Recommendations to Strengthen American Leadership in Digital Financial Technology
U.S. President Trump's Working Group on Digital Asset Markets published its regulatory and legislative proposals aimed at strengthening America's leadership in digital financial technology. The recommendations span six key areas: creating a fit-for-purpose regulatory framework through Congressional action including Commodity Futures Trading Commission (CFTC) oversight spot markets for non-security digital assets and embracing decentralized finance (DeFi) technology; modernizing banking regulations by ending "Operation Choke Point 2.0" and clarifying permissible bank activities in custody and stablecoin issuance; strengthening the dollar's role through implementation of the GENIUS Act creating federal stablecoin regulations and banning central bank digital currencies (CBDCs); combating illicit finance by modernizing anti-money laundering rules while protecting self-custody rights; ensuring fair taxation by reducing compliance burdens and treating digital assets as a distinct asset class; and enabling immediate trading at the federal level through regulatory clarity on registration, custody, and trading requirements. https://www.whitehouse.gov/wp-content/uploads/2025/07/Digital-Assets-Report-EO14178.pdf
#CryptoAssets#Fintech#Regulation#UnitedStates#Stablecoins#DeFi#DFC#CBDC
·whitehouse.gov·
President’s Working Group on Digital Asset Markets Recommendations to Strengthen American Leadership in Digital Financial Technology
Implementation of the Hong Kong stablecoin issuer regulatory regime
Implementation of the Hong Kong stablecoin issuer regulatory regime
The Hong Kong Monetary Authority (HKMA) published various documents for the implementation of the regulatory regime for stablecoin issuers, which comes into effect on August 1, 2025. These include the finalized guidelines on supervision of licensed stablecoin issuers and on anti-money laundering and counter-financing of terrorism (AML/CFT) for licensed stablecoin issuers) plus explanatory notes on various aspects of the stablecoin issuer licensing regime and application process, and on transitional provisions for pre-existing stablecoin issuers. As of July 29, 2025, no license has been issued by the HKMA.
#CryptoAssets#HongKong#Regulation#Stablecoins#Fintech
·hkma.gov.hk·
Implementation of the Hong Kong stablecoin issuer regulatory regime
Digital Economy, Stablecoins, and the Global Financial System
Digital Economy, Stablecoins, and the Global Financial System
The U.S. NBER published a paper that examines the macro-financial implications of a growing digital economy, focusing on stablecoins. The authors develop a three-region model—comprising the U.S., the rest of the world (RoW), and a decentralized “digital economy"—to study how stablecoins affect global financial markets. While stablecoins may increase the demand for safe dollar-denominated reserves, they may also serve as substitutes, reducing the global demand for traditional reserve assets. The paper finds that in the long run, the reserve demand effect dominates: the proliferation of stablecoins leads to lower US interest rates and increased US foreign borrowing and reinforcement of the U.S.'s "exorbitant privilege." . The model also shows that this expansion raises idiosyncratic consumption volatility in the US while reducing it in the RoW. Key channels of influence include both increased financial demand for digital assets and substitution of traditional services with digital alternatives.
#Fintech#Stablecoins#NBER#CryptoAssets#DFC
·nber.org·
Digital Economy, Stablecoins, and the Global Financial System
U.S. GENIUS Act Signed into Law
U.S. GENIUS Act Signed into Law
U.S. President Donald Trump signed into law the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act to establish a regulatory framework for “payment” stablecoin issuers. (A payment stablecoin is a non-interest-paying digital asset that is or is designed to be used as a means of payment or settlement; and the issuer of which is obligated to convert, redeem, or repurchase for a fixed amount of monetary value.) The Act will restrict issuers to subsidiaries of insured depository institutions, federal-qualified nonbank issuers, or state-qualified issuers with stablecoin issuance of $10 billion or less. Issuers must maintain reserves backing the stablecoins on an at least a one-to-one basis. Permitted reserve assets include demand deposits at insured depository institutions, short-term U.S. Treasury securities, money received under Treasury bill-backed repurchase agreements with a maturity of seven days or less, and reverse repurchase agreements with a maturity of seven days or less that are collateralized Treasury securities on an overnight basis. Issuers must also comply with all anti-money laundering regulations. The Act also prioritizes stablecoin holders’ claims in bankruptcy proceedings, and exempts payment stablecoins from securities laws.
#UnitedStates#Fintech#DFC#Regulation#Stablecoins#CryptoAssets
·congress.gov·
U.S. GENIUS Act Signed into Law
Western Union joins stablecoin race, eyes crypto partnerships: CEO
Western Union joins stablecoin race, eyes crypto partnerships: CEO
Western Union’s CEO, Devin McGranahan, announced that the company sees stablecoins as an innovation opportunity and is considering partnerships with major crypto firms to offer stablecoin-based transfers, conversions, and digital wallet services. The company is already testing stablecoin settlements in Africa and South America and has a history of crypto-related initiatives, including past partnerships with Ripple. This renewed interest comes as the U.S. passes the GENIUS Act, which establishes clear regulations for stablecoin issuers, requiring one-to-one reserves and stricter oversight, aiming to foster competition and prevent dominance by large tech or financial firms.
#CryptoAssets#Stablecoins#Payments#CrossBorder#Fintech
·cointelegraph.com·
Western Union joins stablecoin race, eyes crypto partnerships: CEO
Tether will register USDT in the U.S. under the GENIUS Act’s foreign issuer rules
Tether will register USDT in the U.S. under the GENIUS Act’s foreign issuer rules
Tether will soon offer USDT legally in the U.S. under the newly signed GENIUS Act, allowing the El Salvador-issued stablecoin to circulate domestically. CEO Paolo Ardoino confirmed Tether will comply with the foreign issuer pathway, including anti-money laundering laws and audited reserves—a first for the company—within the three-year deadline. Despite this, Tether also plans to launch a separate U.S.-specific stablecoin to meet local compliance standards, alongside USDT. The two coins will serve different audiences: USDT will primarily support immigrants sending remittances abroad, while the new U.S. stablecoin will cater to businesses and institutions requiring full regulatory alignment.
#CryptoAssets#Stablecoins#Tether#USDT#Fintech#Regulation#UnitedStates#DFC
·mitrade.com·
Tether will register USDT in the U.S. under the GENIUS Act’s foreign issuer rules
US banking associations urge OCC to postpone crypto firm applications for bank charters
US banking associations urge OCC to postpone crypto firm applications for bank charters
Five major U.S. banking associations, including the American Bankers Association (ABA), have submitted a formal letter to the Office of the Comptroller of the Currency (OCC) expressing strong opposition to recent national trust charter applications filed by digital asset companies including National Digital TR CO (Protego Trust), Fidelity Digital Assets, First National Digital Currency Bank (Circle), and Ripple National TR Bank. The associations argue that these applications present significant policy and legal concerns because the proposed business models—primarily involving digital asset custody services for cryptocurrencies, stablecoins, and other digital assets—do not constitute the traditional fiduciary activities historically required for national trust banks under federal law (12 U.S.C. § 92a). They contend that the public portions of these applications contain insufficient detail to enable meaningful public scrutiny, with comment periods closing despite inadequate transparency, and that approving such charters would represent a fundamental departure from established OCC precedent that should require extensive public notice and comment procedures. The associations urge the OCC to postpone consideration of all applications until more complete business plan information is made publicly available, warning that approval could establish a problematic precedent allowing companies to obtain national bank charter benefits without corresponding regulatory oversight, potentially creating systemic risks to the banking system.
#CryptoAssets#Fintech#Regulation#OCC#UnitedStates#Banks#Stablecoins#Circle#DFC
·bankingjournal.aba.com·
US banking associations urge OCC to postpone crypto firm applications for bank charters