Latest news with #GENIUSAct
CNBC
20 hours ago
- Business
- CNBC
Stablecoins stole the show at Bitcoin 2025 — here's what the major players said
LAS VEGAS — At the world's largest bitcoin conference this week on the Vegas Strip, the most consequential story wasn't about bitcoin. Stablecoins, the dollar-pegged digital tokens now driving a full-scale financial and political shift in Washington, stole the show. The momentum behind stablecoin legislation and crypto market reform is accelerating — and it's attracting a new kind of donor, investor, and voter. That shift took center stage at Bitcoin 2025 in Las Vegas. Vice President JD Vance became the first sitting U.S. vice president to address the bitcoin community on Wednesday, delivering a full-throated endorsement of crypto. "I think it's wrong, actually, to call this just a conference," Vance told a crowd of 35,000. "This is a movement. And I'm proud to stand with you." "In this administration, we do not think that stablecoins threaten the integrity of the U.S. dollar. Quite the opposite," said Vance. "We view them as a force multiplier of our economic might." Stablecoins are designed to have a stable value against a non-crypto asset, usually the U.S. dollar. "We're streamlining payment rails for ensuring U.S. dollar global dominance for decades to come," Bo Hines, a White House official heading up the president's Digital Assets Council, told CNBC on the sidelines of Bitcoin 2025. He added that stablecoin integration into the U.S. financial system could unlock trillions of dollars in global demand for American debt. Those ambitions hinge on the passage of the GENIUS Act, a Senate bill that would establish the first comprehensive regulatory framework for stablecoin issuers. Sen. Cynthia Lummis, R-Wyo., told the Bitcoin 2025 crowd that the bill would move to a cloture vote on Monday after weeks of negotiations with Democrats. "We think we have a final deal," Lummis said. "If we can get this passed, this will be the first piece of digital asset legislation to pass the U.S. Senate." On the House side, Republicans are racing to match that pace. House Majority Whip Tom Emmer, R-Minn., praised Sen. Bill Hagerty, R-Tenn., for pushing a "calcified" Senate to act at record speed and said the House is determined to get both the stablecoin and broader market structure bills on President Donald Trump's desk before the August recess. "The president promised this," Emmer said. "We want it done now." Rep. Bryan Steil, R-Wisc., who chairs the House Subcommittee on Digital Assets, is leading efforts to advance companion legislation and expects the bill to reach the Financial Services Committee by July. "Stablecoin issuers will be purchasing U.S. Treasuries at a period of time where that is incredibly essential," Steil told CNBC in Vegas. "It enshrines the U.S. dollar in our dominant role as the world's reserve currency." Tether — the largest stablecoin issuer in the world — now ranks among the top buyers of U.S. Treasuries globally. Steil dismissed Democratic efforts to propose an amendment banning government officials from profiting off stablecoin ventures. The Trump family has ties to World Liberty Financial and its newly-launched stablecoin USD1. Kraken CEO Dave Ripley, who has been advising lawmakers behind the scenes, called the legislation essential to bringing financial institutions — including consumer brokers and major banks — into the digital asset ecosystem. But he cautioned that key provisions, including whether yield on stablecoins can be shared with users and how government officials may participate in the market, are still being debated. "Crypto is all about individuals," he said. "Let's bring the value to them." Tether CEO Paolo Ardoino said commodity trading firms will be "the biggest driver" of stablecoin adoption in the next five years. He is already preparing for the next wave of competition as mainstream financial players begin launching their own digital dollars on the blockchain. Ardoino, whose company controls more than 60% of the stablecoin market, emphasized that traditional financial firms entering the stablecoin space will be constrained by their reliance on high-fee customers. "All the traditional financial firms will create stablecoins that will be offered to their existing customers," he told CNBC. According to The Wall Street Journal, major banks including JPMorgan, Bank of America and Citi are in early talks to issue a unified digital dollar to compete with Tether. Tether, by contrast, is targeting the global majority excluded from banking. "Many of our competitors say, 'Oh, Tether is serving this niche of the unbanked,'" he said. "Half of the population of the world should not be called a niche." That global reach is one reason policymakers in Washington are moving fast. Under Trump's newly appointed regulatory team, momentum has shifted decisively. The Securities and Exchange Commission, which has been long viewed as the industry's top adversary, has begun dismantling its enforcement-first framework, clearing the way for greater institutional participation in crypto. SEC Commissioner Hester Peirce said the change was long overdue. "For many years now, I've been complaining about the fact that the commission has not taken proactive steps to provide clarity, and now finally, we're at a place where we can do that," she said. Robinhood CEO Vlad Tenev, who has been meeting privately with the SEC, says tokenization — not just of dollars, but of public and private markets — is now within reach, even without new legislation. "We've actually been engaging with the SEC crypto task force as well as the administration," he told CNBC. "And it's our belief, actually, that we don't even need congressional action to make tokenization real. The SEC can just do it."
Forbes
21 hours ago
- Business
- Forbes
3 Takeaways From Bitcoin 2025 And Beyond
Crypto continues to accelerate in the U.S. NurPhoto via Getty Images With one of the largest crypto conferences wrapping up this week the flurry of headlines and trends that have dominated the cryptoasset landscape in 2025 continues to accelerate. Even as President Trump continues to come under fire for potential conflicts of interest between crypto interests using the Trump likeness and name, and as legislative efforts continue to work through the policy gristmill, market sentiment continues to tick ever higher. For example, May 2025 has seen bitcoin achieve fresh all-time-highs even in the face of economic data suggesting the U.S. economy is slowing, continued volatility around tariff and trade headlines, and a political environment that continues to be bifurcated along party lines. In addition the GENIUS Act continues to move forward in the legislative process as simultaneously multiple states move forward with efforts to establish and fund strategic digital asset stockpiles. Given this volatile, but optimistic backdrop, investors and policy advocates would be forgiven for focusing primarily on price charts and legislative trackers. That said, there are several headlines that either 1) might have flown under the radar, and/or 2) have implications beyond what the fleeting headline coverage may have examined. Let's have a look at a few of them below. In a widely viewed speech at bitcoin 2025, Vice President JD Vance reaffirmed the administrations commitment to stablecoins, and specifically the dollar-backed stablecoins that will be supported via the passage of the GENIUS Act. In addition to specific comments by Vice President Vance at the conference itself, crypto advisor David Sacks reiterated the potential for dollar-backed stablecoins to increase demand for U.S. Treasuries and other debt instruments to the tune of trillions of dollars in demand. Even though the GENIUS Act remains proposed legislation versus reality the language and specificity for how dollar-backed stablecoin issuers would need to ring fence, custody, and invest dollar deposits would be a significant improvement compared to the lack of such regulation and standards that currently exist. In short, and building on previous comments and discussions the position of the U.S. has pivoted from viewing stablecoins as competition for the dollar to a tool that increase the strength of dollar diplomacy. In a headline that might have gone overlooked, the digitization of records across industry lines via blockchain platforms also continues to accelerate. In New Jersey, Bergen County has recently announced a partnership with software firm Balcony to tokenize all property deeds on the Avalanche network under a 5-year agreement. The goal of this initiative is to simplify and secure record management for the nearly 1 million residents that reside in the county lying across from New York City. The total value to be tokenized via this agreement is approximately $240 billion, which would represent the largest such project to date in the United States, as well as serving as example of the increasing trend toward tokenizing real-world assets (RWA). Projected benefits of this project, based on previous implementations by Balcony in New Jersey, include a reduction in processing time by 90%, reducing fraud and record irregularities, and potentially increasing revenue collection. While investors and financial media – rightly so – devote substantial attention to asset prices and regulatory progress, the integration of blockchain across virtually every aspect of the economy continues virtually unimpeded. An additional policy shift that occurred at the same time that Bitcoin 2025 was garnering headline coverage is that the administration has rolled back previous guidance that urged employers to exercise additional caution prior to including bitcoin and other cryptoassets in other 401(k) plans. Politics aside, the position taken is that the specific language that was included in the previous guidance is not found in the Employee Retirement Income Security Act. Instead the Department of Labor had assumed a neutral position with regards to specific assets and/or investment strategies. This is not to say that 401(k) plans and advisors will allocate large amounts of capital to cryptoassets instantaneously, since the fiduciary duties linked to 401(k) plans still exists. Regardless of how quickly and comprehensively crypto becomes added to more passive investment vehicles such as 401(k) plans the signal and stance of the regulatory environment has decidedly shifted toward at least a neutral stance on the sector. Combined with the institutional fund flows that followed the approval of the bitcoin and ether spot ETFs the outlook for institutional capital continuing to enter the crypto space is optimistic. Bitcoin 2025 made headlines and garnered significant media attention, as it should, but under those headlines there are substantial changes and advancements for crypto adoption occurring on an almost daily basis. Investors and policy advocates would be well advised to monitor these developments as well as the longer term implications for price and adoption.
Yahoo
a day ago
- Business
- Yahoo
USDT Price Prediction - What could affect USDT's future price?
USDT price prediction remains stable near its $1 peg, though Tether USDt faces risks from regulatory changes, reserve management scrutiny, and rising competition. Its market dominance and strategic positioning continue to provide a layer of resilience. - Regulatory crackdowns could destabilize operations or demand - Reserve transparency remains critical for maintaining trust - Banking partnerships and institutional adoption may offset risks The GENIUS Act advancing in the U.S. Senate would mandate 100% reserve backing and federal oversight for large stablecoin issuers like Tether. While this could enhance credibility, compliance costs might pressure profitability. Globally, the EU's MiCA regulations and Thailand's approval of USDt for trading create a patchwork of requirements that could complicate cross-border liquidity. Tether's exposure to U.S. jurisdiction via the proposed 'Genius Stablecoin Act: UNCHAINED' introduces legal uncertainty, though CEO Paolo Ardoino's plans for a compliant institutional stablecoin suggest proactive adaptation. Tether holds $120B in U.S. Treasuries – more than Germany's national holdings. While this anchors stability, 80%+ exposure to government securities creates interest rate risk if the Fed cuts rates. Competitors like bank consortium stablecoins (JPMorgan, BofA) and CBDCs could erode Tether's 68% stablecoin market share, though its first-mover advantage and 75.7B USDT on Tron for low-cost transactions provide defensive moats. USDT price prediction depends on the stablecoin's ability to navigate regulatory landmines while maintaining reserve credibility and blockchain agility. Over the next 6–12 months, Tether's treasury-heavy strategy and shift toward institutional products will be tested against rising competition and mounting compliance pressures. USDT price prediction reflects mixed sentiment—bullish due to Tether USDt's market dominance and financial strength, yet tempered by persistent regulatory concerns. - Bullish: Record Treasury reserves ($120B) and Tron blockchain dominance (75.7B USDT). - Bearish: Regulatory scrutiny over transparency and potential deposit outflows from banks. - Neutral: Expansion into AI, telecom, and compliant stablecoins diversifies risk. Market sentiment leans cautiously bullish due to USDT's $120B U.S. Treasury reserves and 75.7B USDT minted on Tron (surpassing Ethereum), driven by lower fees and faster transactions. However, skepticism persists around audit transparency and regulatory risks, with the Federal Reserve warning stablecoins could destabilize banks by accelerating deposit outflows. Tron's dominance: 75.7B USDT now exists on Tron (vs. Ethereum), favored for cost efficiency. Analysts note this could shift blockchain competition dynamics. Regulatory pressure: U.S. senators are pushing the GENIUS Act to mandate Treasury-backed reserves for stablecoins, which Tether already fulfills. Diversification: Tether's ventures into AI, telecom, and gold-backed tokens (e.g., XAUt in Thailand) aim to reduce reliance on USDT. Paolo Ardoino (Tether CEO): Emphasizes transparency efforts (audit talks with Big Four firms) and plans for a compliant stablecoin targeting institutions. U.S. lawmakers: Bipartisan support for the GENIUS Act reflects urgency to regulate stablecoins, potentially legitimizing USDT but imposing stricter oversight. Banks: Fifth Third Bancorp and Russian banks now integrate USDT for cross-border payments and investment products, signaling institutional adoption. USDT price prediction is closely tied to the stablecoin's dominance, which hinges on Treasury-backed stability and Tron's efficiency. However, its long-term resilience will depend on regulatory clarity and successful diversification into compliant products. Will the GENIUS Act's passage solidify USDT's legitimacy—or expose new vulnerabilities? To get the latest update on Tether, visit our USDT currency page. Content created: 30th May 2025 Disclaimer: Content generated by CMC AI. CMC AI can make mistakes, please DYOR. Not financial advice. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Finextra
a day ago
- Business
- Finextra
No FDIC for You: What the GENIUS Act Means for the Future of Crypto Payments: By Nkahiseng Ralepeli
The U.S. Congress is flirting with crypto's version of a 'ChatGPT moment.' A new bipartisan bill – cheekily named the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act) – promises to catapult dollar-backed stablecoins from the fringes of online trading into the mainstream of payments. Having just cleared the Senate with a 66-32 vote after some high-political drama, the proposed legislation now heads to the House. Lawmakers and lobbyists are hailing it as a long-awaited federal framework to 'reaffirm the dominance of the U.S. dollar' in a digital era – even as critics warn it might be a genius plan in name only. The stakes are high: from your neighborhood coffee shop to far-flung international markets, stablecoins could soon be as common as cash or card at the point-of-sale, reshaping who and what powers the world's payments. From Wild West to Regulated Rails If enacted, the GENIUS Act would transform stablecoins from a regulatory gray area into a tightly supervised financial product. Stablecoins, for the uninitiated, are crypto tokens pegged 1:1 to an asset like the U.S. dollar – a breed of digital chits designed to hold steady value. Under the bill's provisions, only vetted 'permitted issuers' could circulate these digital dollars. In practice, that means insured banks and licensed nonbanks only. Key safeguards in the Senate-approved draft include: Issuers must hold 100% reserve assets (U.S. currency or liquid equivalents) for every coin in circulation, and publish monthly reserve reports. The concept is not foreign to the crypto industry - this is an extension of Proof of Reserves, really. Crucially though, holders would also have first claim on reserves if an issuer went bust, protecting consumers in a worst-case scenario. Prospective issuers have a choice of a federal license or state supervision (with a ~$10B cap if state-regulated). Either way, they'll answer to financial regulators. The bill explicitly brings stablecoin issuers under Bank Secrecy Act rules – i.e. strict anti-money laundering (AML), know-your-customer, and sanctions compliance obligations. Those in the crypto world may, however, argue this represents a fundamental tear in the principles of crypto, but it is realistically the direction that we are going if we intend for space to go mainstream. To the relief of crypto markets, properly issued stablecoins would not be treated as securities – sidestepping the SEC's jurisdiction and affirming these tokens are more like digital cash than investment contracts. However, the act pointedly does not bestow Federal Reserve accounts or insurance on stablecoin issuers. In fact, issuers can't brand themselves in any way that implies FDIC backing or U.S. government guarantees. These dollars may be digital, but they're private-sector dollars, not Fed coins. Interestingly, the GENIUS Act opens a door (carefully) for foreign stablecoin issuers to operate in the U.S., but only if Treasury deems their home regulations 'comparable' to U.S. standards. At the same time, late amendments threw up guardrails against corporate giants muscling in: large publicly traded or foreign tech companies not primarily in finance would be barred from issuing stablecoins without special approval from a new Stablecoin Certification Board. The bill even includes a somewhat surreal conflict-of-interest clause inspired by current events: government officials (Congress members, senior exec branch) cannot issue a stablecoin while in public service. (Yes, this is the first U.S. law that implicitly says 'No, Mr. President, you can't officially run your own coin while in office.') These provisions mark a dramatic shift from the free-for-all that saw unregulated stablecoins swell to a $230+ billion market on sheer market demand. Senator Kirsten Gillibrand (D-NY), a co-sponsor, touts the act as bringing 'regulatory clarity' to an important industry while keeping innovation onshore and adding robust consumer protection. By formally legitimizing stablecoins, Congress would effectively invite traditional institutions into the arena. As MIT's Christian Catalini puts it, 'This opens the floodgates… consumers will have more choices. This will bring more competition and innovation in payments.' The idea is that with clear rules of the road, banks, fintechs, and even brands like Meta or PayPal can confidently integrate stablecoins into their offerings, driving crypto-dollars into everyday use. Indeed, just days ago major U.S. banks (JPMorgan, BofA, Citi, Wells) were reported to be mulling a joint stablecoin venture – a move directly 'following US regulatory action' on the GENIUS Act. Not everyone is cheering, however. Detractors label the bill as industry-friendly flimflam, heavy on future promise and light on immediate safeguards. Senator Elizabeth Warren (never one to mince words) blasted the final draft as 'a weak bill [that] is worse than no bill at all', arguing it fails to address glaring conflicts of interest and could turbocharge financial risks. She's pointed squarely at the elephant in the room: the current U.S. President's family is deeply involved in the stablecoin business, raising eyebrows about self-dealing at the highest level. 'This Act will supercharge the stablecoin market – and the reach and profitability of [Donald] Trump's own stablecoin, USD1,' Warren warned on the Senate floor. It's an extraordinary subplot: President Trump's crypto venture, World Liberty Financial, launched 'USD1' in March, and it's already among the top five stablecoins. The GENIUS Act's backers added the aforementioned ethics clause to quell some concerns, but critics like Warren remain unconvinced. In their view, blessing stablecoins at scale – under a President who literally has skin in the game – is, shall we say, a bold experiment. Nonetheless, 16 Senate Democrats crossed the aisle to join Republicans in advancing the bill. The rare bipartisan alignment signals that many in Washington, despite the drama, see stablecoin regulation as inevitable (and perhaps urgently necessary) to avoid ceding this fintech frontier to overseas rivals. Stablecoins at the Checkout: Paying with Crypto Dollars For years stablecoins mostly served as grease for crypto traders – a quick way to hop between Bitcoin and cash without actually touching the banking system. With regulation finally catching up, these digital dollars are poised to leap from trading screens to Main Street tills. The GENIUS Act explicitly frames stablecoins as 'payment stablecoins,' hinting at their intended role in everyday commerce. At Dubai's recent Token2049 conference – a bellwether for crypto trends – the talk was all about making stablecoins 'ubiquitous' at point-of-sale. In a headline-grabbing appearance, Eric Trump (yes, of that Trump family) extolled the virtues of the USD1 stablecoin his family helped launch. World Liberty Financial (WLFI), the Trump-affiliated startup behind USD1, is literally betting the house on mainstream adoption: 'We're working really hard on… getting integrations into traditional retail point-of-sale systems,' WLFI co-founder Zach Witkoff told the Token2049 crowd. The vision: shoppers shouldn't even notice (or care) that they're paying with a stablecoin under the hood. Whether you tap your phone or swipe a card, the transaction could settle in USD1 or USDC on a blockchain, while you and the merchant see just dollars. Eric Trump emphasized making USD1 seamless and secure for cross-border payments – touting transparency, full backing by short-term U.S. treasuries, and regulatory compliance as key to winning trust. If that sounds like stablecoins trying to behave a lot like a digital Pax Americana, that's by design: World Liberty explicitly says it wants to 'promote dollar dominance' via USD1. They're not alone. Payment innovators are already laying pipes between stablecoins and retail outlets. For example, fintech startups have begun integrating stablecoin wallets with familiar interfaces like Apple Pay, allowing users to spend crypto dollars with a tap – while merchants receive fiat in their bank as usual. The idea is to leverage crypto's speed and cost advantages behind the scenes, without asking the corner store to become a blockchain expert. Visa and Mastercard, for their part, are piloting stablecoin settlement for cross-border payments, keen not to be left out if transaction volume shifts to public chains. All of this points to a future where stablecoins function as the 21st-century equivalent of cash, zipping across networks of merchants and consumers globally. Cross-border remittances and e-commerce are low-hanging fruit – indeed, stablecoins are already used to send money overseas in minutes. With clear U.S. legal status, we can expect wider adoption: remittance firms, gig economy platforms, even tourism services could embrace stablecoins to dodge the costs and lags of currency exchange. To be sure, making stablecoin payments truly 'plug-and-play' at scale faces challenges beyond just legal uncertainty. Performance and user experience are key. The industry is responding by deploying on faster, cheaper networks. Second, wallet security and ease-of-use must meet the bar set by Big Tech and banks – nobody wants to fumble with private keys at the checkout line. The GENIUS Act indirectly helps here: by enforcing consumer protections and standard disclosures, it should boost confidence that regulated stablecoins won't suddenly break their peg or vanish. When your digital dollar is as boringly reliable as the one in your pocket, you're more likely to spend it. And what about merchants and payment processors? Many may be blissfully agnostic to how they get paid, as long as it spends like a dollar. That said, merchants will expect stablecoin payments to integrate with their existing systems (invoicing, accounting, etc.) with minimal friction. This is where partnerships between crypto firms and incumbents come in: think point-of-sale providers enabling a 'stablecoin accepted here' option that auto-converts to local currency, or e-commerce platforms adding stablecoin checkout alongside PayPal and cards. With the GENIUS Act, that catalyst is finally clicking into place. A New Financial Frontier in Play? A regulated stablecoin boom will reverberate across the financial industry. Here's a look at how key players might be affected: U.S. banks are now positioning to play offense. With legal clarity, banks can issue their own stablecoins or tokenized deposits without as much fear of regulatory smackdown. They can also earn fees safeguarding reserves or facilitating conversions between stablecoins and traditional money. Still, if consumers start holding significant funds in, say, Circle's USDC instead of bank accounts, deposit bases could erode (so-called deposit substitution). Banks will need to innovate – offering instant payments and cheaper transfers to compete, or partnering with stablecoin networks to remain central in the flow of funds. The upside? New revenue streams in providing stablecoin payment rails, custody, compliance services, and settlement for clients. Banks that adapt could find themselves default stablecoin dealers for the economy, much as they are for cash today. This is a obvious boon for fintech innovators. Firms from PayPal (which already launched a USD stablecoin) to Stripe, Block, and global remittance apps can integrate regulated stablecoins to speed up transactions and cut costs. Social media and e-commerce platforms (imagine Meta, which is reportedly exploring stablecoin payouts again) could use stablecoins to pay creators or suppliers across borders instantly. Payment processors might support merchant acceptance of stablecoins and offer instant stablecoin-to-fiat settlement as a service. There's also a play for card networks to expand their domain – for instance, by enabling crypto wallet spending at any card-accepting merchant, with stablecoin settlement on the back-end. Notably, Visa's CEO has called stablecoins and public blockchain payments a 'natural fit' for moving money; with regulatory approval, such initiatives will accelerate. In short, fintechs stand to gain a new tool in their arsenal: programmable digital dollars that can move 24/7 without bank cut-off times, yet are fully compliant and mainstream-friendly. Corporate treasury teams might discover stablecoins as a superior way to manage liquidity and payments. Imagine a multinational instantly sweeping funds from overseas markets to U.S. headquarters using a dollar stablecoin? Or a corporate paying suppliers in stablecoins to avoid FX conversion costs – the supplier can hold the stablecoin or convert to local currency at their leisure. Stablecoins could become a kind of universal settlement currency for global trade, simplifying transactions that now hop through multiple bank intermediaries. The GENIUS Act's legal imprimatur would make CFOs more comfortable holding stablecoins on balance sheets as a cash equivalent (particularly if auditors take note of the 1:1 reserve mandate and redemption priority that protect those funds). That said, corporate adoption will hinge on risk and accounting treatment. They'll ask: does holding a pile of stablecoins carry credit risk of the issuer? (Arguably low if reserves are in T-bills, but not zero.) How easily can it be converted to real dollars in a pinch? (Regulation should ensure redemption rights, but liquidity in a crisis will be the test.) We may see treasury management products built around stablecoins, offering automated yield (perhaps via short-term T-bill interest) and on-demand conversion to fiat. Visa, Mastercard, and the like have a choice: ride the stablecoin wave or get swamped by it. In truth, they're already riding it – using their networks as a bridge between crypto and commerce.). For point-of-sale transactions, card networks could treat a wallet of regulated stablecoins as just another funding source linked to your account. The user taps their Visa, behind the scenes a stablecoin is debited and converted to fiat for the merchant, and everyone is none the wiser – except that settlement finality happens in minutes on-chain rather than days through correspondent banks. These networks have decades of experience in fraud prevention and global acceptance, assets they can bring to bear to make stablecoin usage as convenient as any other payment. Final thoughts The GENIUS Act could mark the beginning of a new era where fintech and traditional finance converge on a digitally tokenized dollar. Citi's analysts believe regulatory clarity from the Act will integrate blockchain 'more widely into the existing financial system' – bringing stablecoins from crypto niche to financial norm. Of course, this assumes the bill becomes law and works as intended. As of today, it's halfway there: passed by the Senate, and now in the hands of the House of Representatives. The House may well pass its own version, but momentum is on the side of doing something concrete in 2025. The Trump administration is eagerly supportive – unsurprisingly, given the President's public crypto boosterism and personal stake in the outcome. Should Congress send the bill to the Oval Office, a signature from President Trump seems assured, officially ushering stablecoins into the regulatory fold of the United States. The authors of the GENIUS Act will have to prove that this framework serves the public interest first and foremost, not just the early movers in the stablecoin industry. Regulators, too, must deliver: the effectiveness of this regime will hinge on rigorous audits, transparency, and enforcement of those AML provisions to prevent 'stablecoin dystopia' scenarios. The coming months will bring answers, as the House debates the measure and industry stakeholders fine-tune their strategies. Keep an eye on those hearings – expect both starry-eyed testimonials about financial innovation and fiery speeches about corruption and risk. In the meantime, don't be surprised if you see a stablecoin pilot at a store near you. The race to mainstream crypto dollars has begun, and the GENIUS Act might just be the starter's pistol. In a few years, Americans and many others around the world could be transacting with digital Washingtons and Lincolns as nonchalantly as they do with paper and plastic today – all backed by the full faith and credit of… well, a mix of U.S. Treasuries, tech ingenuity, and a new law born in Congress's halls.
Arabian Post
a day ago
- Business
- Arabian Post
Tether's USDT Sees Unprecedented Growth in Market Cap, Transfers, and User Adoption
Tether's USDT stablecoin has experienced significant expansion over the past year, with its market capitalisation rising by 37% to surpass $150 billion. Daily transfer volumes have increased by 90%, and the estimated user base has grown by 51%, according to CEO Paolo Ardoino. These figures underscore USDT's dominant position in the $238 billion stablecoin market, where it accounts for over 60% of the total market share. The surge in daily transfer volumes, now exceeding $90 billion, reflects heightened activity across both decentralised finance platforms and centralised exchanges. The user base has expanded notably, with an estimated 46 million new wallets added in the first quarter of 2025 alone. This growth is attributed to increased adoption among retail and institutional investors seeking stable, dollar-pegged assets for trading and cross-border transactions. ADVERTISEMENT Tether's strategic initiatives have played a role in this expansion. The company's acquisition of a 70% stake in Latin American agriculture and energy firm Adecoagro aims to integrate stablecoins into commodity trading, extending USDT's utility beyond digital assets. This move aligns with Tether's broader strategy to embed stablecoins into real-world financial ecosystems. In terms of reserves, Tether has reported holding over $120 billion in U.S. Treasuries, positioning it among the largest holders globally. The company also holds more than 100,000 bitcoins and over 50 tons of gold, reinforcing its commitment to backing USDT with substantial assets. Regulatory developments have also influenced Tether's operations. The U.S. Senate's advancement of the GENIUS Act, which introduces stricter oversight for stablecoin issuers, has prompted Tether to enhance its compliance measures. The act includes provisions for audits, prohibitions on yield offerings, and strengthened anti-money-laundering protocols.
