The wobbly foundations of the stablecoin boom: podcast
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US lawmakers endorsed digital tokens backed by dollars like Tether and USDC, collectively worth $250 bln. In this episode of The Big View podcast, banks analyst and author Dan Davies explains the risks of mingling supposedly solid crypto assets with the regulated banking system.
(The host is a Reuters Breakingviews columnist. The opinions expressed are his own.)
Further Reading
Circle IPO tethers rival to an unhinged valuation
The bitcoin hoarder copycat game is just beginning
Why stablecoins will entrench dollar's supremacy
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Reuters
24 minutes ago
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Trump tax bill risks exodus of clean hydrogen investment
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Final guidance on how to qualify for the credits was only published by the U.S. Treasury Department in January 2025 and is complex, requiring projects to source clean power from either nuclear plants "at risk of retirement" or new renewable energy projects, to minimize the impact on wider electricity supply. Many projects "will not be able to meet the end of 2025 deadline' set out in the proposed tax bill, Lee Beck, Senior Vice President for global policy and commercial strategy at green fuel developer HIF Global, told Reuters Events. "It takes four to six years to develop large infrastructure projects," Beck said "Having just a few months to make the required project changes, commence construction, and reach financial close is unrealistic in infrastructure timeframes.' In one example, HIF Global requires until the end of 2027 to begin construction of a green hydrogen plant in Matagorda County, Texas, Beck said. 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Dozens of stakeholders including the American Petroleum Institute (API) and the FCHEA sent a joint letter to Senate majority leader John Thune and Chairman of the Senate Committee on Finance Mike Crapo on June 5, calling for the retention of the 45V credits for projects that start construction by December 31, 2029. Download our exclusive report: US Energy Strategies Under Trump 2.0 The early withdrawal of 45V tax credits would "send yet another destabilising signal to the market—stranding investment and halting project development," FCHEA President and CEO Frank Wolak told Reuters Events. Eliminating the credits early would impact American job creation and industrial competitiveness, Wolak said. 'Walking away from the 45V credit would cede our competitive edge to China and Europe, where governments are aggressively supporting their hydrogen industries," he said. Demand challenge Current hydrogen production is mostly 'grey' hydrogen produced from gas using steam methane reformation processes. The cost of green hydrogen is currently far higher than the cost of grey hydrogen and the 45V tax credits were introduced to help clean hydrogen developers move from pilot projects to larger commercial facilities and drive down costs. The Biden administration aimed to reduce the cost of clean hydrogen to $1/kg by 2031, compared with around $5/kg in 2022. CHART: US estimated clean hydrogen demand at threshold prices While Trump's proposed tax bill cuts back the 45V credits, it leaves intact 45Q tax credits for carbon sequestration that offer an alternative form of support for blue hydrogen projects. The 45Q credits offer $60 to $180/tonne of sequestered carbon if prevailing wage and apprenticeship requirements are met. Developers must choose between 45V or 45Q schemes. 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Reuters
26 minutes ago
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US set to object to green jet fuel recommendation at UN aviation council, sources say
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Telegraph
28 minutes ago
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