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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
1:1 Redemptions for Some, Not All
1:1 Redemptions for Some, Not All
The MIT Digital Currency Initiative (DCI) published a blog that discusses the complexities of stablecoin redemptions and the importance of understanding the relationship between issuers, institutional clients, and retail users. It highlights that while issuers promise a 1:1 redemption, this promise is not always guaranteed due to factors such as access, solvency, and liquidity. The article explains that institutional clients have direct access to redeem tokens at face value, whereas retail users rely on intermediaries, leading to a two-tiered system. This system can be particularly punishing during times of market stress, as seen during the USDC-SVB crisis in 2023. See also: https://www.linkedin.com/posts/co-pierre-georg-841074325_11-redemptions-for-some-not-all-mit-digital-activity-7353023948927746048-b3mi/
#CryptoAssets#Stablecoins#Fintech#FinancialStability
·dci.mit.edu·
1:1 Redemptions for Some, Not All
JD.com, Ant Group push yuan stablecoins to challenge US dollar dominance
JD.com, Ant Group push yuan stablecoins to challenge US dollar dominance
JD.com and Ant Group are reportedly pushing Chinese regulators to launch yuan-based stablecoins to boost the currency's global role and counter the US dollar's dominance. The move aims to strengthen the yuan's presence in global trade and limit the dollar's influence. The two companies are preparing to apply for stablecoin licenses in Hong Kong and Singapore, with early feedback from regulators described as positive. JD.com also plans to apply for stablecoin licenses in major countries to reduce cross-border payment costs, initially targeting business-to-business transactions but eventually perhaps extending to consumer payments. https://cointelegraph.com/news/jdcom-stablecoin-global-licensing-genius-act
#Stablecoins#CryptoAssets#Fintech#DFC#HongKong#China#AntFinancial#JDcom
·cointelegraph.com·
JD.com, Ant Group push yuan stablecoins to challenge US dollar dominance
Citigroup Looks to Issue Its Own Stablecoin to Smooth Payments
Citigroup Looks to Issue Its Own Stablecoin to Smooth Payments
According to CEO Jane Fraser during a post-earnings call, Citigroup is considering issuing its own stablecoin, as part of the bank’s broader digital assets strategy, which includes reserve management and crypto custody services, aiming to strengthen its position in the digital payments space. Fraser pointed to the supportive regulatory framework under the Genius Act, which enables banks to participate more fully in digital assets.
#CryptoAssets#Fintech#Stablecoins#Banks#Citigroup#UnitedStates#Regulation#DFC
·bloomberg.com·
Citigroup Looks to Issue Its Own Stablecoin to Smooth Payments
FSB Chair Andrew Bailey Makes Stablecoins a Priority Ahead of G20 Meeting
FSB Chair Andrew Bailey Makes Stablecoins a Priority Ahead of G20 Meeting
In a letter to the G20, Financial Stability Board Chair Andrew Bailey called for further attention to be given to assessing the increasing role of stablecoins for payment and settlement purposes, on account of under-explored potential risks, in part due to the pace of market developments. He called for the FSB to continue to ensure that it is implementing its agreed recommendations, monitoring developments in this area and collaborating across jurisdictions and with the standard-setting bodies where relevant. https://www.fsb.org/uploads/P140725.pdf https://www.fsb.org/2023/07/high-level-recommendations-for-the-regulation-supervision-and-oversight-of-global-stablecoin-arrangements-final-report/
#Stablecoins#FSB#G20#Regulation#CryptoAssets#FinTech#DFC
·coindesk.com·
FSB Chair Andrew Bailey Makes Stablecoins a Priority Ahead of G20 Meeting
Stablecoins Have Long Road to Mainstream Payments, Mastercard Says
Stablecoins Have Long Road to Mainstream Payments, Mastercard Says
According to Mastercard's chief product officer, Jorn Lambert, stablecoins have a long way to go before becoming a mainstream payment tool. While stablecoins offer promising attributes like high speed and low costs, they lack essential attributes like a seamless user experience and wide distribution to consumers. Mastercard is positioning itself as a bridge between digital assets and traditional finance, providing infrastructure to make stablecoins usable at scale by leveraging its global network and security safeguards. However, Lambert notes that stablecoin adoption faces significant hurdles, including consumer adoption and friction in online checkout experiences, making it difficult to clear in the near-term.
#Stablecoins#MasterCard#Payments#Fintech#CryptoAssets#DFC
·bloomberg.com·
Stablecoins Have Long Road to Mainstream Payments, Mastercard Says
Stablecoin Growth - Policy Challenges and Approaches
Stablecoin Growth - Policy Challenges and Approaches
The BIS published a paper that examines the rapid growth of stablecoins and the resulting policy challenges for financial regulators. Despite promising stability, stablecoins exhibit significant price volatility and rarely trade at exact parity, raising questions about their reliability as payment instruments. The authors identify several critical policy concerns: stablecoins' use in illicit activities due to their pseudonymous nature and cross-border mobility; potential threats to monetary sovereignty as foreign currency-denominated stablecoins could undermine domestic monetary policy effectiveness; and systemic risks arising from stablecoin issuers' substantial investments in Treasury securities, which could impact monetary policy transmission and create fire sale risks during market stress. The bulletin concludes that the traditional regulatory principle of "same risks, same regulation" has limited applicability to stablecoins, necessitating bespoke regulatory frameworks that address their unique characteristics while leveraging blockchain traceability for enhanced oversight, particularly at interfaces with the regulated financial system.
#BIS#CryptoAssets#Regulation#Stablecoins#FinTech#DFC
·bis.org·
Stablecoin Growth - Policy Challenges and Approaches
Decrypting Crypto: How to Estimate International Stablecoin Flows
Decrypting Crypto: How to Estimate International Stablecoin Flows

The IMF published the results of a study that leveraged a combination of AI and machine learning to estimate the geographic distribution of international stablecoin flows. Analyzing $2 trillion in stablecoin transactions during 2024, it finds that stablecoin flows are highest in absolute terms in North America ($633 billion) and Asia-Pacific ($519 billion). However, the most significant flows relative to GDP were in Latin America/Caribbean (7.7%) and Africa/Middle East (6.7%). Additionally, intraregional flows in these two regions are notably lower, accounting for 14% and 12% of total flows originating from the region, compared to, for example, 34% in North America. This suggests that stablecoin use in Africa and Latin America is predominantly international, possibly driven by use cases such as remittances. The study also establishes a correlation between net stablecoin inflows into regions and the relative weakness of domestic currencies against the U.S. dollar, either suggesting that stablecoins serve as a mechanism to fulfill global demand for dollar-based assets for people that seek a hedge against currency depreciation, or that stablecoin flows could possibly be sizable enough to drive exchange rate dynamics.

#CryptoAssets#Fintech#Stablecoins#IMF#DFC#AI#MachineLearning#CrossBorder
·imf.org·
Decrypting Crypto: How to Estimate International Stablecoin Flows
Stablecoins, DeFi, and Credit Creation
Stablecoins, DeFi, and Credit Creation
Galaxy Digital published an examination of how stablecoins and decentralized finance (DeFi) are fundamentally restructuring global credit intermediation, driven by three key trends: adoption as savings instruments in emerging markets with weak currencies, use as efficient cross-border payment rails competing with traditional systems like SWIFT, and access to above-market yields through DeFi protocols. The analysis argues that this growth will systematically drain deposits from traditional banks—particularly regional and emerging market institutions—while concentrating assets in US Treasury securities and major US financial institutions, effectively creating enforced credit contraction in certain regions while over-allocating credit to the US government. Galaxy Digital contends this represents a paradigm shift with stablecoin issuers emerging as significant players in government debt markets and potentially new credit intermediaries, ultimately creating an "efficient frontier of digital dollar investments" that could reshape monetary policy, financial stability, and the architecture of global finance.
#Stablecoins#DeFi#Fintech#CryptoAssets#DFC
·galaxy.com·
Stablecoins, DeFi, and Credit Creation
Stablecoins are trending, but what frictions and risks are getting overlooked?
Stablecoins are trending, but what frictions and risks are getting overlooked?
The Atlantic Council published an article by Ashley Lannquist that discusses the growing popularity of stablecoins, while highlighting the risks and frictions. The article points out regulatory gaps, potential financial instability, and the lack of transparency in reserve backing, which could lead to liquidity crises if many users redeem stablecoins simultaneously. It also examines geopolitical concerns, such as the use of stablecoins to evade sanctions, and operational risks like cybersecurity threats. Also, despite their utility in cross-border payments and decentralized finance (DeFi), stablecoins' value for everyday payments remains to be seen.
#Stablecoins#Fintech#CryptoAssets#DFC
·atlanticcouncil.org·
Stablecoins are trending, but what frictions and risks are getting overlooked?
Latest stablecoin depeg spotlights need for better attestation
Latest stablecoin depeg spotlights need for better attestation
Falcon USD (USDf), a crypto-backed, overcollateralized stablecoin issued by Falcon Finance, a subsidiary of DWF Labs experienced a depegging event, with its price dropping as low as $0.98 and briefly to $0.9432 before recovering to around $0.995. This incident has raised concerns about the transparency and quality of the collateral backing USDf, as well as the potential risk of a broader stablecoin crisis reminiscent of the Terra (LUNA) collapse. Critics and risk consultants have pointed to a lack of clarity regarding the composition and liquidity of USDf’s reserves, and have questioned its inclusion as collateral on DeFi lending platforms. In response to the depegging and growing scrutiny, DWF Labs’ CEO has pledged to provide a more detailed breakdown of the assets backing USDf.
#CryptoAssets#Stablecoins#Fintech#DFC
·ledgerinsights.com·
Latest stablecoin depeg spotlights need for better attestation
Deutsche Bank and DWS secure license for euro-denominated stablecoin
Deutsche Bank and DWS secure license for euro-denominated stablecoin
The joint venture AllUnity, formed by banking giant Deutsche Bank and asset management firm DWS, obtained authorization from Germany’s Federal Financial Supervisory Authority (BaFin) to launch a euro-denominated stablecoin. AllUnity was granted an Electronic Money Institution (EMI) license, paving the way for the debut of EURAU, a euro-backed stablecoin fully compliant with the Markets in Crypto-Assets Regulation (MiCA) framework. EURAU will feature a transparent proof-of-reserve system and regular financial reporting. The stablecoin is specifically designed to integrate into the operational flows of regulated institutions, fintech platforms, and corporate treasuries.
#Fintech#Stablecoins#Eurozone#Germany#Regulation#DFC
·atlas21.com·
Deutsche Bank and DWS secure license for euro-denominated stablecoin
Ubyx Whitepaper: Stablecoin Ubiquity
Ubyx Whitepaper: Stablecoin Ubiquity
[March 2025] Ubyx published a whitepaper on its proposed clearing system designed to enable universal redemption of stablecoins at par value through traditional financial institutions, thereby solving the "many-to-many" network problem that currently limits stablecoin adoption. The system would allow users to deposit any participating stablecoin into their existing bank or fintech accounts at full value, transforming stablecoins from specialized crypto assets into cash equivalents under accounting standards (IAS7) and enabling their use as general-purpose digital money. Ubyx proposes to create a mutualized acceptance network connecting stablecoin issuers, receiving institutions, settlement banks, and scaling partners through standardized APIs and a comprehensive rulebook, while maintaining peer-to-peer transaction capabilities and regulatory compliance through multiple layers of KYC, AML, and fraud prevention checks. The system would begin as a centralized platform but transition toward progressive decentralization through a DAO governance structure, with economic incentives aligned across all participants through transaction fees, redemption revenues, and the Ubyx token ecosystem, ultimately aiming to usher in a "stablecoin epoch" where digital currencies achieve ubiquity as mainstream payment methods. https://github.com/UbyxRules/Ubyx-Rulebook
#Fintech#Stablecoins#CryptoAssets#DFC
·ubyx.xyz·
Ubyx Whitepaper: Stablecoin Ubiquity
Building tomorrow’s markets: the digitalisation of finance
Building tomorrow’s markets: the digitalisation of finance
The Bank of England's (BoE's) Financial Market Infrastructure Executive Director, Sasha Mills, outlined the central bank's vision for digitalizing wholesale financial markets through tokenization of assets and smart contracts on distributed ledger technology (DLT). She pointed to the Bank's updated thinking on settlement assets, particularly allowing systemic stablecoins to be backed by remunerated high quality liquid assets (HQLAs) rather than solely unremunerated central bank deposits. Ms. Mills highlighted progress through the Digital Securities Sandbox and the UK Government's Digital Gilt pilot (DIGIT), while outlining plans for enhanced access to the upgraded real time gross settlement (RTGS) service and exploring synchronization interfaces to enable conditional settlement across different ledger systems. She emphasized that the future financial system will likely be a "mixed ecosystem" where new and old structures coexist, requiring interoperability between different systems, and called for moving beyond theoretical discussions to practical implementation of these digital foundations.Ms. Mills also floated potential holding limits for systemic stablecoins, likely be in the region of £10,000 to £20,000 for individuals and £10 million for businesses.
#Fintech#UnitedKingdom#CryptoAssets#Stablecoins#Settlement#Regulation#DFC
·bankofengland.co.uk·
Building tomorrow’s markets: the digitalisation of finance
Central Bank of Bahrain Issues Framework for Regulating Stablecoins
Central Bank of Bahrain Issues Framework for Regulating Stablecoins
The Central Bank of Bahrain (CBB) introduced a framework for licensing and regulating stablecoin issuers. It mandates that any entity seeking to issue, mint, burn, custody, or offer stablecoins from within Bahrain must be licensed and obtain CBB approval—unregulated activity is prohibited. Licensed stablecoin issuers will be permitted to issue single currency stablecoins backed by Bahraini Dinar (BHD), United States Dollar (USD), or any other fiat currency acceptable by the CBB, with a strict 1:1 high-quality liquid reserve requirement (cash and demand deposits held at banks with at least an AA‑ credit rating or its equivalent, debt securities issued by the CBB, or repurchase agreements (repos) backed by short‑term government money‑market instruments). The module also allows yield-bearing variants—returns generated solely from interest or Sharia-compliant rewards on reserve assets—but caps issuers from offering interest tied to user balances. https://www.cbb.gov.bh/wp-content/uploads/2024/10/Stablecoin-Issuance-and-Offering-Module.pdf
#Regulation#Stablecoins#Bahrain#Fintech#CryptoAssets#DFC
·cbb.gov.bh·
Central Bank of Bahrain Issues Framework for Regulating Stablecoins
How XRP could undermine Ripple's move for national trust bank charter
How XRP could undermine Ripple's move for national trust bank charter
Ripple Labs has applied for a national trust bank charter from the Office of the Comptroller of the Currency (OCC) to potentially bring its RLUSD stablecoin under federal regulation as part of a dual-track strategy alongside its existing state-regulated path through Standard Custody & Trust. The application represents a hedging strategy, as federal oversight would provide institutional credibility and improve chances of obtaining a Federal Reserve master account, which would enable direct payments and potentially allow stablecoin reserves to be held at the central bank. However, Ripple faces a significant regulatory challenge: under Basel III banking rules, its substantial XRP cryptocurrency holdings would require dollar-for-dollar capital reserves, while those same XRP holdings cannot be counted as qualifying capital because they are classified as intangible assets—creating a potentially prohibitive capital adequacy problem that could undermine the charter application unless addressed through restructuring, such as routing the charter through a subsidiary like Standard Custody rather than directly through Ripple Labs.
#Fintech#Regulation#Ripple#UnitedStates#XRP#CryptoAssets#Stablecoins#DFC
·ledgerinsights.com·
How XRP could undermine Ripple's move for national trust bank charter
Stripe will help Shopify merchants to accept stablecoin payments
Stripe will help Shopify merchants to accept stablecoin payments
[June 12, 2025] Stripe will form a deeper partnership with Shopify that will enable millions of Shopify merchants across 34 countries to accept stablecoin payments in USDC (USD Coin). Customers will be able to pay with USDC on the Base blockchain using their preferred crypto wallet, while merchants can choose to receive payments in their local currency deposited to their bank account or transfer funds directly as USDC to an external wallet. Stripe Connect platforms in the U.S. will also be able to enable stablecoin payments for their users.
#Fintech#Payments#Stablecoins#Stripe#USDC#CryptoAssets#DFC
·stripe.com·
Stripe will help Shopify merchants to accept stablecoin payments
Fiserv Launches New FIUSD Stablecoin for Financial Institutions
Fiserv Launches New FIUSD Stablecoin for Financial Institutions
[June 23, 2025] Fiserv plans to launch a new digital asset platform featuring the FIUSD stablecoin, that will leverage infrastructure from Paxos and Circle, operate on the Solana blockchain, and be available at no additional cost to Fiserv's approximately 10,000 financial institution clients and six million merchant locations that process 90 billion transactions annually. FIUSD is designed to provide banks with 24/7 settlement capabilities and streamlined processes while maintaining full control over customer experience through easy integration with existing Fiserv platforms like Experience Digital and Commercial Center, with built-in compliance features including fraud monitoring and risk management.
#CryptoAssets#Stablecoins#Fintech#UnitedStates#DFC
·investors.fiserv.com·
Fiserv Launches New FIUSD Stablecoin for Financial Institutions
Societe Generale-FORGE to Launch a USD Denominated Stablecoin
Societe Generale-FORGE to Launch a USD Denominated Stablecoin
(June 10, 2025] Societe Generale-FORGE announced the launch of USD CoinVertible (USDCV), a USD-denominated stablecoin that will be deployed on both Ethereum and Solana public blockchains, with The Bank of New York Mellon Corporation (BNY) serving as reserve custodian. This marks SG-FORGE's second stablecoin after the EUR CoinVertible launched in April 2023, offering institutional, corporate, and retail investors 24/7 instant conversion between fiat currencies and stablecoins for activities like crypto trading, cross-border payments, and cash management. Both stablecoins are fully compliant with European MiCA regulation as Electronic-Money Tokens, with SG-FORGE licensed as an Electronic Money Institution by French regulators, and trading of USDCV is expected to begin in early July 2025, though neither stablecoin is available to US persons.
#CryptoAssets#Stablecoins#Fintech#France#Europe#DFC
·sgforge.com·
Societe Generale-FORGE to Launch a USD Denominated Stablecoin
Ripple Follows Circle in Bid for US Banking License
Ripple Follows Circle in Bid for US Banking License
Ripple has filed an application with the Office of the Comptroller of the Currency (OCC) to obtain a national bank charter, following in the footsteps of Circle's similar application just two days earlier. The application comes as stablecoin issuers prepare for expected regulatory requirements under the GENIUS Act legislation, which recently passed the Senate. Ripple has also filed for a Federal Reserve master account through its Standard Custody subsidiary, which would allow it to hold RLUSD stablecoin reserves directly with the Fed and provide more flexibility for processing digital assets. See also: https://x.com/bgarlinghouse/status/1940454339207667941.
#Regulation#Circle#CryptoAssets#Fintech#UnitedStates#Ripple#XRP#Stablecoins#DFC
·decrypt.co·
Ripple Follows Circle in Bid for US Banking License
Paxos launches Global Dollar USDG in the EU
Paxos launches Global Dollar USDG in the EU
Paxos has launched its Global Dollar stablecoin (USDG) in the European Union in compliance with local Markets in Crypto-Assets (MiCA) regulations, with initial distributors including Kraken and Gate. The stablecoin operates under a revenue-sharing model where Paxos shares most of the revenues earned on reserves with distribution partners, departing from industry norms. Originally issued under Singapore laws, USDG entered the EU market through Paxos's acquisition of Finland's Membrane Finance, which held a MiCA license. The launch highlights the complexity of managing multi-jurisdictional stablecoins, as EU regulations require 30% of reserves to be held as cash in local bank accounts, necessitating a rebalancing process that has drawn criticism from EU parliamentarians who worry about potential regulatory circumvention during crisis situations. https://www.paxos.com/newsroom/global-dollar-(usdg)-launches-in-the-eu
#CryptoAssets#Fintech#Stablecoins#Paxos#USDG#Regulation#Europe#DFC
·ledgerinsights.com·
Paxos launches Global Dollar USDG in the EU
Circle Applies for National Trust Charter
Circle Applies for National Trust Charter
Circle submitted an application to the Office of the Comptroller of the Currency (OCC) to establish a national trust bank, First National Digital Currency Bank, N.A. If approved, the bank would be authorized to operate as a federally regulated trust institution, subject to OCC oversight, and would oversee the management of the USDC Reserve on behalf of Circle’s U.S. issuer. An approval would also further strengthen the infrastructure that supports the issuance and circulation of USDC and would offer digital asset custody services to institutional customers. A federally regulated trust charter would also help Circle meet expected requirements under the proposed GENIUS Act legislation, which would represent a meaningful step forward in integrating digital assets into the broader U.S. financial system.
#Circle#Fintech#Regulation#Stablecoins#USDC#UnitedStates#DFC#CryptoAssets
·businesswire.com·
Circle Applies for National Trust Charter
Genius Act Would Amend Bankruptcy Code to Accommodate Certain Crypto Assets
Genius Act Would Amend Bankruptcy Code to Accommodate Certain Crypto Assets
The GENIUS Act's Section 11 establishes comprehensive insolvency protections for payment stablecoin holders by fundamentally restructuring bankruptcy priorities and procedures. The Act grants stablecoin holders first priority claims over all other creditors, including administrative expenses, ensuring they have primary access to required reserves and any remaining unencumbered assets of the debtor. It addresses potential gaps by deeming all stablecoin holders to have valid claims regardless of contractual terms, while excluding required reserves from the bankruptcy estate to prevent other creditors from accessing these funds. However, the Act creates some operational tensions by subjecting these excluded reserves to the automatic stay, requiring a court-approved process for redemption that could delay access by more than two weeks. The legislation also mandates that insolvency proceedings for regulated depositories be handled by appropriate federal or state regulators, and requires a comprehensive study of potential legal gaps in stablecoin insolvency law within three years of enactment.
#CryptoAssets#Stablecoins#Fintech#Bankruptcy#Regulation#UnitedStates#DFC
·jdsupra.com·
Genius Act Would Amend Bankruptcy Code to Accommodate Certain Crypto Assets
Proper Procedures Not Followed on Palau Stablecoin Project
Proper Procedures Not Followed on Palau Stablecoin Project
Republic of Palau's Office of the Public Auditor published a performance audit report of the Ministry of Finance's stablecoin project conducted from October 2021 through November 2023. The audit found that while the Ministry of Finance acted within its authority in partnering with Ripple to explore a US Dollar-backed digital currency (Palau Stablecoin or PSC), the agreements were not certified by the Attorney General for form and legality, and the availability of funds was not properly certified by the National Director of Program, Budget, and Management before entering into contracts. The project involved 154 government employee volunteers testing the stablecoin at three local retailers using $25,000 provided by Ripple. The audit concluded that while the proof-of-concept (POC) was executed properly within the Ministry's mandate and funds were appropriately managed, any expansion beyond the POC phase to establish a circulating currency would require legislative approval from the Palau National Congress. https://www.palauopa.org/pdf/opa-audits/Year%202025/Stablecoin-Pilot-Project-AR-2025-005.pdf
#Palau#Ripple#Stablecoins#CryptoAssets#Fintech#DFC
·cryptopolitan.com·
Proper Procedures Not Followed on Palau Stablecoin Project
If Stablecoins are Money, They Should be Backed by Reserves
If Stablecoins are Money, They Should be Backed by Reserves
RISK has made freely available a 2021 article by Charles Kahn and Manmohan Singh that argues that stablecoins pose fundamental challenges to traditional monetary policy because, unlike conventional bank money that must be backed by central bank reserves, stablecoins are backed by short-term government securities, commercial bank deposits, and other high-quality liquid assets. This creates a parallel currency system outside central bank control, potentially reducing its ability to influence money supply through monetary policy operations. The authors suggest that to maintain monetary policy effectiveness, central banks should consider allowing stablecoin issuers direct access to central bank reserves and payment systems, essentially treating them like banks.
#Stablecoins#Regulation#Fintech#DFC
·risk.net·
If Stablecoins are Money, They Should be Backed by Reserves
Are Payment Stablecoins Like Onions?
Are Payment Stablecoins Like Onions?
JD Supra published an article that analyzes the proposed GENIUS Act of 2025 and its exclusion of payment stablecoins (PSCs) from the definition of "commodity" under the Commodity Exchange Act. The author argues this exclusion would prevent futures trading on PSCs, eliminate regulatory oversight by the CFTC and SEC over PSC derivatives markets, and create enforcement gaps since banking regulators lack market regulation expertise. The article warns that removing PSCs from commodity status could paradoxically create an unregulated retail derivatives market while preventing legitimate hedging opportunities. The author suggests a simple fix: removing the commodity exclusion provision to allow proper regulatory oversight while maintaining the Act's other protections for stablecoin issuers and users.
#Stablecoins#Regulation#UnitedStates#Fintech#DFC#CryptoAssets
·jdsupra.com·
Are Payment Stablecoins Like Onions?
What Makes Good Money? Rethinking Stablecoins in Light of BIS Criticism
What Makes Good Money? Rethinking Stablecoins in Light of BIS Criticism
Michel Rauchs posted on LinkedIn a critique of the June 24, 2025 Bank for International Settlements (BIS) "Next Generation Monetary and Financial System" article for its broad condemnation of stablecoins, arguing that the BIS conflates different issues such as functionality, elasticity, and integrity. Rauchs defends stablecoins as effective forms of money in certain contexts, especially in the Global South and crypto-native markets, citing their growing role in cross-border remittances and decentralized finance. He challenges the BIS's framing of elasticity by contrasting bank credit creation with stablecoin-backed liquidity, and he questions whether "integrity" should be used as a criterion for monetary quality. The discussion in the comments, involving experts like Aleksi Grym, Rhys Bidder, Patrick McConnell, and Colin Shields, expands on these themes—debating BIS methodology, the systemic risks of stablecoins, and the evolving definition of money. While most agree on the risks and limitations of stablecoins, several commenters argue that BIS analysis is too narrow or outdated and that the current monetary system’s own shortcomings must be acknowledged. https://www.bis.org/publ/arpdf/ar2025e3.htm
#BIS#CryptoAssets#Stablecoins#Fintech#DFC#Money
·linkedin.com·
What Makes Good Money? Rethinking Stablecoins in Light of BIS Criticism