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Crypto Insight
3 days ago
- Business
- Crypto Insight
GENIUS Act blocks Big Tech, banks from dominating stablecoins: Circle exec
The GENIUS Act contains a little-noticed clause that prevents technology giants and Wall Street behemoths from dominating the stablecoin market, according to Circle Chief Strategy Officer Dante Disparte. 'The GENIUS Act has what I'd like to call — just for my own legacy sake — a Libra clause,' Disparte told the Unchained podcast on Saturday. Any non-bank that wants to mint a dollar-pegged token must spin up 'a standalone entity that looks more like Circle and less like a bank,' clear antitrust hurdles and face a Treasury Department committee with veto power over the launch. Banks don't get a free pass either. Lenders that issue a stablecoin must house it in a legally separate subsidiary and keep the coins on a balance sheet that carries 'no risk-taking, no leverage, no lending,' Disparte noted. That structure is even 'more conservative' than the deposit-token models JPMorgan and others have floated. 'It creates clear rules that I think in the end the biggest winners are the US consumers and market participants and frankly the dollar itself,' he added. GENIUS Act passes with bipartisan backing Passed last week with more than 300 House votes, including support from 102 Democrats, the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act gives the dollar 'rules-based' firepower in the global digital-currency race, Disparte argued. 'Crypto is finally getting what it wanted: legitimization, a path for legal and regulatory clarity in the United States and an opportunity to compete,' he said. The bill preserves the patchwork of state money-transmitter laws for issuers under a $10 billion threshold but demands a national trust-bank charter once assets breach that level. Notably, the law bans interest-bearing stablecoins, pushes rigorous disclosure standards and introduces criminal penalties for unbacked 'stable' tokens. Terra-style experiments are 'gone,' Disparte said. However, critics argue the ban on yield could stunt consumer adoption and hand an advantage to overseas issuers. Disparte claimed that yield 'is a secondary-market innovation' better delivered by decentralized finance protocols once the base layer is rock-solid. DeFi gains edge as GENIUS bans yields The GENIUS Act's ban on yield-bearing stablecoins could redirect investor demand toward Ethereum-based decentralized finance (DeFi) platforms. With no interest incentives left in stablecoins, DeFi becomes the primary option for generating passive income onchain, according to analysts like Nic Puckrin and CoinFund's Christopher Perkins, who predicted that 'stablecoin summer' may now evolve into 'DeFi summer.' The ban is especially significant for institutional investors. Unlike retail users, financial institutions have fiduciary duties to generate returns, making yield opportunities essential. Analysts suggest this could lead to a surge in institutional capital flowing into DeFi, particularly on Ethereum, which dominates total value locked in the sector. Source:
Axios
6 days ago
- Business
- Axios
Trump takes victory lap over signing stablecoin bill he championed
President Trump took a step Friday toward his goal of giving the crypto industry clear rules of the road when he signed into law legislation establishing a regulatory framework for stablecoin issuers. Why it matters: The GENIUS Act is the first piece of legislation regulating the cryptocurrency industry to be enacted in the U.S. "The GENIUS Act. They named it after me, you know," Trump joked Friday during a White House signing ceremony. He called the bill signing "a massive validation" of the crypto industry. The president thanked leaders from many of the biggest crypto companies who were present for the ceremony. "I pledged that we would bring back American liberty and leadership and make the United States the crypto capital of the world, and that's what we've done," Trump said. Catch up fast: The legislation passed the House 308-122 on Thursday after Trump and GOP leaders overcame opposition from a group of hardline Republicans. It passed the Senate in June by a vote of 68-30. The big picture: Stablecoins are cryptocurrencies that represent $1 worth of deposits, usually in cash or short-term treasuries. Users can use them to make very rapid, low-cost transactions, that settle nearly instantly (which can be important for large, overseas transactions). Stablecoins could allow retailers to keep as much of a customer's payment as cash does, whereas credit and debit card payments seriously cut into margins. "The emergence of dollar-based stablecoins has really introduced quite a lot of new ways of moving money that don't take bank holidays," Dante Disparte, global head of policy at Circle, the U.S.'s largest existing stablecoin issuer, told Axios before this week's House action. Friction point: The Trump family's considerable personal investments in cryptocurrency led Democrats to warn about the risks for a conflict of interest with the White House. The president's family has launched its own stablecoin, USD1, through World Liberty Financial, a firm that sends most of its profits to the Trump family. The company has a market cap of $2.2 billion. Stablecoin issuers profit largely off the earnings on reserve funds backing their stablecoins — which can be substantial in a high interest-rate environments like the current one. That sets World Liberty Financial up to hold onto interest earned on more than $2 billion of reserves. Yes, but: That hasn't stopped the president from pushing for lower interest rates. Zoom out: "This the first step in deep crypto legislating. And it shows that Congress can still do big policy," former House Financial Services Chair Patrick McHenry, now an advisor to real-world assets startup Ondo Finance and to the venture firm Andreessen Horowitz, tells Axios. "Which is a nice and reassuring thing," McHenry added. "We spent an enormous amount of time trying to negotiate an outcome like we just had," he said, referring to his time as chairman. What we're watching: Despite consistent objections by Democrats to the president's continued crypto interests, the minority party has turned out in large numbers for the final votes in each chamber.
Mint
7 days ago
- Business
- Mint
Donald Trump poised to sign crypto's big bang' law after US House passes landmark GENIUS act
The U.S. House passed the GENIUS Act Thursday by 308-122 votes, creating America's first federal rules for stablecoins, cryptocurrencies pegged to the dollar. President Trump will sign it into law after pushing Republicans to support it despite initial conservative opposition. The bill marks a major victory for crypto firms that spent $119 million backing pro-crypto candidates in the 2024 elections, says Reuters. Industry leaders celebrated, with Circle's Dante Disparte calling it a "defining moment for the future of money" that reinforces U.S. dollar dominance Globally. Stablecoins like USDC and USDT must now hold cash or Treasury bills matching every dollar issued and publicly disclose reserves monthly. Issuers face anti-money laundering rules and bans on paying interest to users. Banks like JPMorgan and retailers like Amazon can now launch their own coins, potentially disrupting credit card networks. The $238 billion market could grow to $2 trillion under these rules, predicts Treasury Secretary Scott Bessent. Twelve conservative Republicans briefly blocked the bill Tuesday, demanding it include a ban on Federal Reserve digital currencies. After a 9.5-hour negotiation, the longest House vote in modern history, holdouts agreed to support the bill when leaders promised to attach the CBDC ban to a defense bill later this year. Trump's personal stake drew criticism: His family's company, World Liberty Financial, issues the USD1 stablecoin and could profit from the law. Democrats like Maxine Waters slammed the bill as 'blessing corruption'. The law positions the US to lead crypto innovation, fulfilling Trump's pledge to make America the 'crypto capital of the planet'. Experts predict a "flood" of new stablecoins from banks and tech giants, boosting cross-border payments, according to a Reuters report.
Yahoo
17-06-2025
- Business
- Yahoo
Senate passes stablecoin bill, a major victory for the crypto world
The Senate on Tuesday passed a bill that would establish the first federal framework for dollar-backed cryptocurrencies known as stablecoins, a major victory for an industry that has pushed for more favorable oversight in Washington, D.C. Though passage of the GENIUS Act in the upper chamber by a vote of 68-30 won't yet make the new legislation law — it still needs approval from the House and President Trump — the crypto world is already lauding the bill's swift progress as a major step. 'I feel really good about [this bill],' said Dante Disparte, chief strategy officer and head of global policy and operations at Circle (CRCL), the largest US stablecoin issuer. Circle's stock has soared roughly 400% since its debut day of trading on June 5, a sign of growing investor enthusiasm for stablecoins as the legislation advances in Congress. Coinbase (COIN) Chief Legal Officer Paul Grewal said on X that "a year ago I would've thought this at best was a fever dream. Think for a moment on how far we've come." The GENIUS Act, which stands for 'Guiding and Establishing National Innovation for US Stablecoins,' sets a framework for how US companies can issue and manage dollar-backed stablecoins for payments. It bans members of Congress and their families from earning profits from stablecoins but not President Trump and his family, an omission that has irked some Democrats and slowed progress on the legislation this spring. Read more: Trump has called for a strategic bitcoin reserve. How it would work. Trump is deepening his own financial involvement in stablecoins as the legislation advances. World Liberty Financial, a new crypto startup backed by President Trump and his sons, has launched its own US-dollar-pegged stablecoin (USD1) in partnership with BitGo. If the legislation clears the House, it is expected to unleash a wave of new stablecoin entrants as traditional companies ranging from reportedly giant lenders to mega retailers are already considering whether to issue their own coins. 'We're working with the industry, working individually,' Bank of America (BAC) CEO Brian Moynihan said of BofA's stablecoin prospects last week at a Morgan Stanley conference. Earlier this month, Bank of America and other big banks convened to explore prospects for launching a collaborative stablecoin network. The Wall Street Journal also reported last week that Amazon (AMZN) and Walmart (WMT) are exploring stablecoin opportunities. The new wave of competition could upend the traditional payment system, especially if merchants look to get around conventional card-based networks such as Visa (V) and Mastercard (MA). 'While we continuously explore new payment technologies in efforts to support our customers, we are not piloting any programs and do not currently have any plans in place to issue our own stablecoin,' a Walmart spokeswoman told Yahoo Finance. The legislation currently before the Senate would empower the Federal Reserve and the Office of the Comptroller of the Currency (OCC) to oversee stablecoin issuers that hold $10 billion or more in assets, while smaller issuers would be under the purview of state regulators. All issuers would be required to hold reserves in cash or US Treasurys, undergo regular audits, and publicly disclose their holdings and redemption processes. Like money market funds, the tokens must aim to be redeemable at face value. But unlike money market funds, stablecoins under this bill cannot pay interest. Stablecoins are touted by their proponents as a haven from crypto's wild volatility and a safer place for traders to store their gains because they can be pegged to non-crypto assets like the dollar. Their near-instant settlement and programmability also carry advantages proponents believe could enhance cross-border transactions and wider access to the US dollar. 'I think with the GENIUS Act, we actually have the right thing,' Disparte said. 'You have every issuer, whether a bank, a credit union, or a non-bank, would have a common regulatory floor under which they would operate.' But there are still concerns among detractors that there could be risks with stablecoins, including the possibility of panic runs among investors. Circle's Disparte says the bill will 100% protect financial stability, citing criminal penalties for failing to report transparently and submit to an audit, a review, or an attestation of your reserves. Consumer protection issues, he added, are addressed "through and through" in this bill. Some Democrats, including Sen. Elizabeth Warren, expressed concerns that the bill would allow giant tech companies such as Amazon (AMZN) or Meta (META) to launch their own stablecoins. But Disparte noted that the bill stipulates that any tech company wanting to issue a stablecoin would have to go through a special committee at the Treasury Department to get approval. The head of that department, Treasury Secretary Scott Bessent, has high hopes for what this legislation may mean. He told lawmakers last week that the legislation could help push the US stablecoin market beyond $2 trillion by the end of 2028. The global stablecoin market currently sits around $250 billion, according to data provider DeFiLlama. Now that the bill has passed the Senate, there may be an effort in the House to attach it to a wider bill offering more sweeping regulation of all crypto assets. And that may complicate matters. Trump has said he wants to sign stablecoin legislation before Congress leaves for its August recess. Click here for in-depth analysis of the latest stock market news and events moving stock prices 登入存取你的投資組合
Yahoo
17-06-2025
- Business
- Yahoo
Crypto hails Senate vote on stablecoin bill as a major victory
The Senate is preparing for a final vote Tuesday on a bill that would establish the first federal framework for dollar-backed cryptocurrencies known as stablecoins, a major victory for an industry that has pushed for more favorable oversight in Washington, D.C. Though passage of the GENIUS Act in the upper chamber won't yet make the new legislation law — it still needs approval from the House and President Trump — the crypto world is already lauding the bill's swift progress as a major step. 'I feel really good about [this bill],' said Dante Disparte, chief strategy officer and head of global policy and operations at Circle, (CRCL) the largest US stablecoin issuer. Circle's stock has soared roughly 400% since its debut day of trading on June 5, a sign of growing investor enthusiasm for stablecoins as the legislation advances in Congress. 'I think with the GENIUS Act, we actually have the right thing,' Disparte said. 'You have every issuer whether a bank, a credit union or a non-bank would have a common regulatory floor under which they would operate.' The GENIUS Act — which stands for 'Guiding and Establishing National Innovation for U.S. Stablecoins' — sets a framework for how US companies can issue and manage dollar-backed stablecoins for payments. It bans members of Congress and their families from earning profits from stablecoins but not President Trump and his family, an omission that has irked some Democrats and slowed progress on the legislation this spring. Trump is deepening his own financial involvement in stablecoins as the legislation advances. World Liberty Financial, a new crypto startup backed by President Trump and his sons, has launched its own US-dollar-pegged stablecoin (USD1) in partnership with BitGo. If the legislation clears the House, it is expected to unleash a wave of new stablecoin entrants as traditional companies ranging from reportedly giant lenders to mega retailers are already considering whether to issue their own coins. 'We're working with the industry, working individually,' Bank of America (BAC) CEO Brian Moynihan said of BofA's stablecoin prospects last week at a Morgan Stanley conference. Earlier this month, Bank of America and other big banks convened to explore prospects for launching a collaborative stablecoin network. The Wall Street Journal also reported last week that Amazon (AMZN) and Walmart (WMT) are also exploring stablecoin opportunities. The new wave of competition could upend the traditional payment system, especially if merchants look to get around conventional card-based networks such as Visa (V) and Mastercard (MA). 'While we continuously explore new payment technologies in efforts to support our customers, we are not piloting any programs and do not currently have any plans in place to issue our own stablecoin,' a Walmart spokeswoman told Yahoo Finance. The legislation currently before the Senate would empower the Federal Reserve and Office of the Comptroller of the Currency (OCC) with overseeing stablecoin issuers that hold $10 billion or more in assets while smaller issuers would be under the purview of state regulators. All issuers would be required to hold reserves in cash or US Treasuries, undergo regular audits, and publicly disclose their holdings and redemption processes. Like money market funds, the tokens must aim to be redeemable at face value. But unlike money market funds, stablecoins under this bill cannot pay interest. Stablecoins are touted by their proponents as a haven from crypto's wild volatility and a safer place for traders to store their gains because they can be pegged to non-crypto assets like the dollar. Their near-instant settlement and programmability also carry advantages proponents believe could enhance cross-border transactions and wider access to the US dollar. "To be able to sort of give the US dollar when it is native on the internet legal clarity, there is no substitute for that,' Circle's Disparte said. But there are still concerns among detractors that there could be risks with stablecoins, including the possibility of panic runs among investors. Circle's Disparte says the bill will 100% protect financial stability, citing criminal penalties if you fail to report transparently and submit to an audit or a review or an attestation of your reserves. Consumer protection issues, he added, are addressed "through and through" in this bill. Some Democrats, including Sen. Elizabeth Warren, have expressed concerns that the bill would allow giant tech companies such as Amazon or Meta to launch their own stablecoins. But Disparte noted that the bill stipulates that any tech company wanting to issue a stablecoin would have to go through a special committee at the Treasury Department to get approval. The head of that department, Treasury Secretary Scott Bessent, has high hopes for what this legislation may mean. He told lawmakers last week that the legislation could help push the U.S. stablecoin market beyond $2 trillion by the end of 2028. The global stablecoin market currently sits around $250 billion, according to data provider DeFiLlama. If the bill passes the Senate, there may be an effort in the House to attach it to a wider bill offering more sweeping regulation of all crypto assets. And that may complicate matters. Trump has said he wants to sign stablecoin legislation before Congress leaves for its August recess. Click here for in-depth analysis of the latest stock market news and events moving stock prices
