Latest news with #GENIUSActBill
Indian Express
20-06-2025
- Business
- Indian Express
US Senate clears GENIUS Act: What the US stablecoin regulation means for the global crypto landscape
The US Senate passed the GENIUS Act Bill on Wednesday with a vote of 68-30 in a major boost for stablecoins — reserve-backed cryptocurrencies that have received an impetus from the Donald Trump administration in America. The next stage for the GENIUS Act will be passage in the US House of Representatives, where members have readied their own version of a stablecoin regulation bill, the STABLE Act. Challenges notwithstanding, the GENIUS Act's passage in the US Senate led to a surge in the price of crypto exchange operator Circle. According to exchange data, Circle Internet Group's share price was up 33.82 per cent at market closing on Wednesday. In pre-market activity, Circle's share price was up another 24.75 per cent to $211.87 apiece at 1:35 pm IST on Friday. US markets were closed on Thursday for the Juneteenth 2025 National Independence Day. Stablecoins, or commodity-backed cryptocurrencies, have witnessed a surge in market capitalisation to $251.7 billion so far in 2025, marking a 22 per cent rise this year, Reuters reported on Wednesday, citing industry data. The passage of the GENIUS ACT Bill in the US Senate is backed by multiple actions taken by the administration of US President Donald Trump — from the announcement of a strategic crypto reserve to the promotion of cryptocurrency sympathiser Paul S Atkins as chairperson of the US markets regulator, the Securities and Exchange Commission. Trump's family interests in cryptocurrency are well known and were mentioned in the Senate discussions after the tabling of the GENIUS Act. What US Treasury Secretary Scott Bessent said on stablecoins In the run-up to the passage of the GENIUS Act bill in the US Senate, US Treasury Secretary Scott Bessent said in a social media post on X that 'stablecoins could grow into a $3.7 trillion market by the end of the decade'. Recent reporting projects that stablecoins could grow into a $3.7 trillion market by the end of the decade. That scenario becomes more likely with passage of the GENIUS Act. A thriving stablecoin ecosystem will drive demand from the private sector for US Treasuries, which back… — Treasury Secretary Scott Bessent (@SecScottBessent) June 17, 2025 In a podcast clip posted on his X page, Bessent said crypto is unlikely to pose a threat to the US dollar stating that 'stablecoins could reinforce dollar supremacy, because stablecoins can end up being one of the largest buyers of US Treasuries… T-bills.' Elaborating on how this may work, Bessent gave the example of how 'all of a sudden if you are using a stablecoin in Nigeria backed by the USD, you don't actually have to have dollars it's on your phone, you can transact (using dollar-backed stablecoins)…' Crypto is not a threat to the dollar. In fact, stablecoins can reinforce dollar supremacy. Digital assets are one of the most important phenomena in the world right now, yet they have been ignored by national governments for far too long. This administration is committed to… — Treasury Secretary Scott Bessent (@SecScottBessent) June 18, 2025 'There's a very good chance that crypto is actually one of the things that locks in dollar supremacy,' Bessent added. GENIUS, STABLE and the race to regulate stablecoins The Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act was passed by the US Senate on Wednesday with a 68-30 vote. The bill sets guardrails for stablecoins with proposals for compliance to ensure prevention of money laundering, full backing of cryptocurrencies by reserves and monthly audits. Last week, Bessent told Senators that the US stablecoin market could surge 8X to $2 trillion, CNBC reported. The GENIUS Act will be tabled next in the US Representatives House which has its own version of the stablecoin regulation bill, the STABLE Act. The Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act places oversight of stablecoins, or reserve backed cryptocurrency under the purview of the Office of the Comptroller the Currency in the US, similar to the GENIUS Act. However, STABLE Act differs from the GENIUS Act in terms of limiting reserve backing requirements to a clutch of assets such as US Treasuries apart from restricting who can issue stablecoins, according to Jeff Reundlet, head of accounting strategy at Cryptio, provider of ledger services for cryptocurrencies. However, the STABLE Act bill may not go far enough, according to a paper written by partners at the law firm Orrick. While the bill aims to create a single regulatory framework for prospective issuers, and excludes payment stablecoins from federal securities laws, it may allow state regulators the power to monitor which stablecoins may be supported by exchanges of licensed intermediaries, wrote Nathaniel Reisenburg, managing associate, and Joseph Perkins and Ignacio Sandoval, partners at Orrick. Trump's crypto interests US President Donald Trump took to his social media platform Truth Social after the US Senate passed the GENIUS Act bill, stating it 'going to make America the UNDISPUTED Leader in Digital Assets — Nobody will do it better, it is pure GENIUS!' 'Digital Assets are the future, and our Nation is going to own it. We are talking about MASSIVE Investment, and Big Innovation,' Trump added. In his podcast interview, Bessent reiterated the Trump administration's commitment to digital assets, while adding that 'because there are so many other things that happen around digital assets… it's one of the most important phenomenons happening around us in the world and the US just ignored it (under the Biden administration).' Trump reversed his stance on crypto assets from his first term, and even released his own namecoin to burnish his credentials as a backer of virtual digital assets. Cryptocurrency backers also contributed generously — around $20 million —into electing what is considered a pro-crypto Congress during the 2024 cycle, CNBC reported. Trump's crypto empire In a recent declaration, Trump disclosed earnings of over $600 million from interests including crypto, golf clubs, and licensing deals apart from other ventures. According to the public disclosure, the US President has earned an estimated $320 million from his $TRUMP memecoin. Trump also pulled in $400 million from the World Liberty Financial platform for cryptocurrencies which is backed by his children. The US President earned $57.35 million from the sale of digital tokens at WLF. He also reportedly held over 15 billion governance tokens in WLF. Other crypto ventures related to Trump include exchange traded funds held via Truth Social's crypto vertical and crypto mining firm American Bitcoin, CNBC reported. Crypto diplomacy and countering de-dollarisation Hacker group Gonjeshke Darande, Persian for 'Predatory Sparrow', with potential links to Israel, wiped off $90 million from Iran's largest crypto exchange Nobitex, Reuters reported, citing a Telegram post by the group. The attack was confirmed in the app by Nobitex, according to the report. Hackers wiped the exchange clean of a range of digital coins from Bitcoin to Ethereum and Dogecoin, said Andrew Fierman, head of national security intelligence at Chainalysis, the newswire reported. Last month, Trump family-linked WLF inked a pact with the Pakistan Crypto Council to boost cryptocurrency adoption in the country, days after it agreed to a ceasefire with India in the aftermath of Operation Sindoor, which was launched by New Delhi to target terror camps across the border in response to a terror attack in Pahalgam, Kashmir which killed 26 Indian tourists. Apart from these instances of cryptocurrencies playing a key role in diplomacy as well as hostilities, digital tokens are also being used to reinforce the US dollar's supremacy, as pointed out by Bessent above. By formalising stablecoin issuance, backed by the dollar, the US is seemingly hedging its bets in a world where key economies are switching to commodities such as gold as they intend to de-risk their holdings from USD-related volatility. The US sanctions on Russia in the aftermath of the declaration of war on Ukraine involved the freezing of Russian foreign exchange worth $300 billion, triggering a risk-off approach among countries across the world. In 2023, Russian President Vladimir Putin gave a call for de-dollarisation, urging the BRICS grouping to promote settlements in national currencies and expand bank-to-bank cooperation. Trump warned the BRICS against such a move which could potentially hurt the dollar. In a statement in February Trump boasted he had warned BRICS nations of desisting from de-dollarisation or face outsized tariffs. The stablecoin route is expected to energise the dollar by promoting the use of cryptocurrency pegged to the greenback. It remains to be seen whether this will be adopted across the globe.
Indian Express
11-06-2025
- Business
- Indian Express
Peter Thiel-backed crypto company Bullish confidentially files for IPO amid surge in crypto IPOs under Trump
Cryptocurrency exchange operator Bullish confidentially filed for an IPO in recent weeks, the Financial Times reported, citing people familiar with the matter. This report comes a week after rival Gemini shared a similar announcement. Bullish, backed by PayPal co-founder and venture capitalist Peter Thiel, aims to tap into rising investor interest in cryptocurrencies under the Trump administration, according to the report. A confidential IPO filing with the US markets regulator, the Securities and Exchange Commission (SEC), enables a company to take their listing plans forward before revealing their financials closer to the actual fundraising period. To be sure, Bullish attempted to go public in 2021 through a special purpose acquisition vehicle deal, which was shelved in 2022 since markets dived owing to a rise in interest rates in the US. Reports of Bullish's IPO filing follow a pattern of similar filings by crypto exchanges seeking a public listing under US President Donald Trump, whose administration has nixed some regulations of his predecessor to promote a more open stance towards cryptocurrencies. Digital coins have also gained public acceptance with Trump issuing an executive order to create a strategic bitcoin reserve and a stockpile of digital assets. The Trump administration has also floated the GENIUS Act Bill which is focused on the regulation of stablecoins — cryptocurrency backed by a fixed asset or currency. Another important connection shared by these IPO-bound crypto exchanges is their ownership, which comprises individuals who contributed to Trump's presidential campaign. The Trump family's business interests in the crypto field, including memecoins of Trump and his wife Melania have also inspired confidence among the larger crypto community. Gemini Space Station Inc, the crypto exchange owned by the Winklevoss twins — known for suing Mark Zuckerberg for allegedly stealing their idea to set up social networking site Facebook — on June 6 announced that it had confidentially filed a draft statement with the SEC related to a proposed initial public offering. Without disclosing the potential IPO size, it said the SEC was reviewing the application. Founded by twins Cameron and Tyler Winklevoss in 2014, the company reached a $5 billion settlement in January with the Commodity Futures Trading Commission. In February, the SEC closed a probe into Gemini without recommending any further action, CNBC reported. The Winklevoss twins contributed $2 million to Trump's election campaign citing what they called previous President Joe Biden administration's 'war on crypto'. However, they were refunded a portion of their contribution for exceeding the cap on crypto-based donations, Bloomberg reported. Stablecoin issuer Circle's successful listing last week generated significant interest in cryptocurrencies. The company's stock listed at a premium over the $31 apiece IPO price on the New York Stock Exchange. Circle Internet Group's stock price surged to $88 apiece, a 180 per cent premium over what institutional investors paid for the stock. After listing on the NYSE at $69 apiece, Circle Group's stock closed at $83.23 apiece on June 5, before surging higher to $107.70 apiece the next day and $115.25 per share on June 9. The company's share price eased over 8 per cent to $105.91 apiece on Tuesday. Circle Group is the issuer of the USDC, the second largest stablecoin available to investors after Tether's USDT. Stablecoins are cryptocurrencies that are indexed to an asset — mostly the US dollar in case of cryptocurrencies. Apart from spurring a spate of crypto IPOs, Circle Group's record listing also led to a surge in the stocks of US-based crypto exchange operator Robinhood. Another crypto exchange operator Coinbase's stock was added to the S&P 500 index last month, in a move that indicates the gradual relaxation of a hands-off approach towards cryptocurrencies. During the same week as the listing of Circle Group's stock, a filing was made for a Truth Social Bitcoin exchange trade fund by the Trump Media and Technology Group Corp. The company's stock price closed 1.46 per cent lower on Tuesday. According to banking giant Standard Chartered, the stablecoin market is projected to grow up to $2 trillion in value by 2028 compared to $247 billion right now if the US passes the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act. Passed by the Senate last month, the GENIUS Act aims to encourage the issuance of stablecoins by private companies. The bipartisan bill aims to regulate blockchain technology in a change of tack from the Biden administration which took an arm's length approach towards cryptocurrency. By confidentially filing for an IPO, Bullish also underlines a key link to Trump — PayPal founder and crypto backer Thiel, who wields influence in the Trump administration with key appointments seen to be his proteges. Apart from his PayPal co-founder Elon Musk, who recently quit the Trump 2.0 administration as head of the Department of Government Efficiency, the White House crypto and AI czar David Sacks is also known to be close to Thiel. He is also said to have been instrumental in introducing Trump to his future Vice president J D Vance, according to a Fortune profile of the PayPal founder. The Trump administration has also infused confidence among crypto enthusiasts through the announcement of a strategic crypto reserve comprising five digital tokens, which may have been accrued by the government as part of regulatory proceedings. That said, Trump also announced his own meme coin $TRUMP and another one in his wife's name, MELANIA. Last month, Pakistan's Crypto Council inked an agreement with the World Liberty Financial Inc (WLFI) backed by Trump's children. These domestic and international moves by Trump in his administrative and personal capacity have reinvigorated investor confidence in cryptocurrencies.
Indian Express
05-06-2025
- Business
- Indian Express
Rapid uptake of crypto in developing economies raises concerns, says IMF's Gita Gopinath: Here's why
The International Monetary Fund's (IMF) first deputy managing director Gita Gopinath on Thursday flagged concerns about the rise of crypto uptake in developing economies saying that though nascent, it poses a risk in terms of currency substitution. In an interview with the Financial Times, Gopinath said 'we are seeing some pretty rapid growth of uptake of crypto in some emerging markets.' Emerging markets faced risks from crypto uptake, especially stablecoins, in terms of 'disintermediation of their financial institutions,' she said. 'In terms of currency substitution, those risks are rising,' Gopinath added. Gopinath's comments came against the backdrop of US President Donald Trump's push for a strategic crypto reserve and backing to the issuance of stablecoins to make America the 'crypto capital of the world'. In the Indian subcontinent, Pakistan has recently struck a deal with US-based World Liberty Financial Inc (WLFI) a firm backed by the Trump family, for that country to emerge as a crypto hub while promoting the use of blockchain technology and the use of stablecoins for payments and remittances. Amid a spate of activity in the crypto space, experts echo Gopinath's warning that cryptocurrencies may pose a risk to the currencies and financial institutions of developing and emerging economies. Stablecoins are cryptocurrencies whose value is pegged to an asset such as a currency or commodity such as gold. Cryptocurrencies such as Bitcoin have rallied since Donald Trump took over as US President owing to the reversal of his earlier skeptical stance on digital coins. He appointed David Sacks as the White House crypto czar while also naming crypto backer Paul S Atkins as the Securities and Exchange Commission (SEC) chair. Flagship cryptocurrency Bitcoin's price stood at $104,512.82 apiece, down 0.07 per cent, at 7:30 pm on Thursday. Last month, Bitcoin breached the $110,00 mark for the first time after the passage of the GENIUS Act Bill in the US Senate owing to bipartisan support. If passed the GENIUS Act is also expected to allow crypto companies to produce more stablecoins. Issuers must be in compliance with anti-money laundering provisions and anti-terrorism regulations, according to the Bill's fine print. Further, stablecoins issuers must back the digital currency with fiat currency or highly liquid assets in a 1:1 ratio. They must also maintain separate reserves to backstop the stablecoins, according to the GENIUS Act Bill. Democratic Senator Mark R Wright, who backed the bill, stated that while there were concerns about the Trump family's involvement in cryptocurrencies to 'evade oversight, hide shady financial dealings, and personally profit at the expense of everyday Americans… blockchain technology is here to stay.' He said it was in America's interest to take the lead on shaping crypto policies. Democratic Senator Elizabeth Warren warned that the GENIUS Act Bill did not meet the minimum standards such as guaranteeing consumer protection and preventing the illicit use of stablecoins. Passage of the GENIUS Act may pose a risk since the illicit use of stablecoins already make up 60 per cent of unlawful crypto transactions. If passed, the GENIUS Act is expected to boost the stablecoin market's growth by 10X to $2 trillion, Warren said citing industry estimates. Developing countries and their dalliance with cryptocurrencies Pakistan recently announced a collaboration between the Pakistan Crypto Council and the WLFI, which envisages the use of blockchain technology to promote financial inclusion. It also aims to monetise national assets such as rare earths besides using stablecoins in trade and remittance. Pakistan eyes the status of a regional crypto hub as a result of this agreement. Experts warn of the inherent instability of the crypto asset system. To elaborate on Gopinath's warning, a paper titled 'Crypto assets as a threat to financial market stability' states that currencies of emerging and developing economies may lose their importance as store of value owing to higher inflation rates, leading to a rising degree of substitution of the domestic currency by a foreign currency. According to an UNCTAD study, this may result in the 'cryptoisation' of emerging and developing economy currencies relative to their GDP and backed by factors such as a younger population as well as macroeconomic stability. In Central America, El Salvador, which approved Bitcoin as official tender in 2021, the cryptocurrency has seldom found use as a means for buying goods and services. Stablecoins may also pose a risk similar to that seen during a bank run — when depositors and investors rush to cash their assets after a bank is unable to honour its financial commitments owing to a shortage of assets. According to the paper cited above, the linkage of stablecoins to a currency creates arbitrage opportunities leading to speculation. Former US Treasury Secretary Janet Yellen during a US Congressional hearing said fears of inadequate asset backing for stablecoins may also lead to a sell off triggering a situation similar to a bank run. In March this year, Trump announced the creation of a strategic crypto reserve — a basket comprising Bitcoin, Ethereum, XRP, Solana and Cardano. While flagging 'corrupt attacks (on cryptocurrencies) by the Biden administration' Trump in a Truth Social post said the US Crypto Reserve, part of his executive order on digital assets will 'elevate this critical industry'. 'I will make sure the US is the Crypto Capital of the World,' Trump said. Under Trump, the US has dropped probes and legal lawsuits related to alleged securities violations against cryptocurrency firms and exchanges. The US government holds an estimated 200,000 Bitcoin pending an audit, according to a fact sheet shared by the White House. To be sure, the US crypto reserve will only store digital tokens obtained through forfeiture proceedings — it will not purchase additional reserves at the cost of the American taxpayer's money, according to the White House fact sheet.
