Latest news with #GeniusAct
South China Morning Post
11 hours ago
- Business
- South China Morning Post
What is the Genius Act, and can it really cement US dollar supremacy?
At last week's Bitcoin 2025 conference in Las Vegas, there was one phrase on everyone's lips: the Genius Act. Advertisement Vice-President J.D. Vance used his speech at the event to urge lawmakers to pass the bill – also known as the Guiding and Establishing National Innovation for US Stablecoins Act – which is currently the subject of heated debate on Capitol Hill. 'Dollar-pegged stablecoins, particularly once Genius is enacted, are only going to help the American economy and it's only going to help the American dollar,' Vance said. But what exactly is a stablecoin, what is the Genius Act, and what would it actually mean for the future of the US dollar? The Post breaks down what financial experts are saying about the bill and its implications for the global economy. What is a stablecoin? A stablecoin is a form of cryptocurrency, like bitcoin. But unlike bitcoin, whose value is largely determined by the market, a stablecoin – as the name suggests – is designed to maintain a stable value relative to certain assets, usually a currency.
Yahoo
5 days ago
- Business
- Yahoo
Regulatory clarity ‘foundational' for crypto: Gemini CFO
This story was originally published on CFO Dive. To receive daily news and insights, subscribe to our free daily CFO Dive newsletter. As Vice President JD Vance noted Wednesday at the 2025 Bitcoin conference in Las Vegas, cryptocurrency 'finally has a champion and an ally in the White House," with the election of President Donald Trump. Both the president and vice president are large proponents — and owners — of cryptocurrency, and the Trump administration has taken immediate steps to woo cryptocurrency exchanges and related businesses, appointing industry-friendly heads to regulators like the Securities and Exchange Commission and touting plans to create a national stockpile of digital assets, among other initiatives. Though some have expressed concern over the policies and Trump's potential conflicts of interest given his business interests in the industry, many are hoping the new spotlight on crypto will help to create more space for it next to traditional currencies — something that requires firm regulatory standards to be put in place. Regulatory clarity is 'really foundational,' not just for the cryptocurrency space, but for businesses across any industry, said Dan Chen, CFO of crypto exchange Gemini Trust. The exchange, a major cryptocurrency player, was founded by Cameron and Tyler Winklevoss. 'Regulatory clarity is simply put, an ability for business to know what the rules are and how to remain in compliance with the rules,' Chen told CFO Dive in an interview. 'And I think the mode we're in now, where regulators are investing the time to create frameworks that are clear, that are concise and allow businesses to operate, is essential.' The need to bring regulatory clarity to the cryptocurrency space — which has long operated on the fringes of the mainstream financial system — has been dogged by persistent murkiness and uncertainty. Crypto exchanges and regulators have repeatedly clashed over how to properly characterize digital assets, over accepted definitions of key terms such as stablecoins — digital assets that are pinned in value to that of a fiat currency, but which lack a widely accepted regulatory definition — and which entity should ultimately hold the responsibility for regulating those assets and industry players. Among other moves praised by crypto advocates, the Trump administration has taken several steps to ease some of that tension, such as creating a working group focusing on stablecoins. Congress has also recently passed the 'Genius Act,' a bill that would create the first regulatory framework for stablecoins, NBC reported. Other regulators have also recently issued new guidance on crypto assets, with the Financial Accounting Standards Board, for example, recently implementing new standards that ask firms to report crypto assets using fair value accounting methods. 'I'm sure a lot of the regulators in the space also prefer having more clear rules, because then they know what policies and procedures they need to enforce and follow,' Chen said. Like many exchanges, Gemini itself has clashed with the SEC in the past. In 2023, for example, the regulator charged Gemini with selling unregistered securities through its Earn program. This April, the exchange and the SEC asked a federal judge for a pause on the ongoing suit in favor of reaching a potential resolution, Bloomberg reported. For Gemini, the bigger stage that is opening up for crypto also represents growing opportunity, creating more space for the exchange to cultivate relationships with businesses and individuals that might previously have been wary of utilizing digital assets. One in four (24%) individuals now own cryptocurrency, according to Gemini's 2025 Global State of Crypto report released earlier this week, compared to one in five (21%) the previous year. That growth is likely due in part to Trump's crypto policies, the exchange said, noting its survey results 'suggest these policies are inspiring interest in the industry among non-owners — those who have never invested in crypto,' according to a press release. 'Understanding and winning over this group will drive significant growth for the industry, which has experienced relatively flat adoption over the past few years.' Cryptocurrency still has 'a lot of room to grow,' Chen said, noting the total value of all crypto currently hovers around $3 trillion, compared to the approximate $60 trillion total value of the U.S. stock market. Amid changing policies, many businesses are exploring new potential use cases for cryptocurrency — payment players, including PayPal, Mastercard and Payoneer, are now experimenting with stablecoin usage for cross-border payments, for example, CFO Dive sister publication Payments Dive reported. 'There are so many use cases, many of which have not been fully developed, but to me, that's clearly the platform that things will be built upon,' Chen said of digital assets. 'And that's really the goal, you skate to where the puck will be, and that's where that future will get built in.' One of the areas Chen is particularly excited about in regards to Gemini is the company's credit card business, he said. The exchange offers a credit card product in partnership with Mastercard that enables users to earn Bitcoin on purchases, according to its website. Such a card is appealing to individuals who are already fully invested in cryptocurrency or digital assets, but also those who are interested, 'but they don't know what the right time to invest is,' Chen said. 'That's always one of the big riddles.' It's a way for individuals to ease into the space 'without making a conscious decision to buy at one moment with one large dollar amount,' he said. 'And you might look at that and realize the interface is great, the exchange is fantastic, and it's a great tool to get involved with Gemini. So for us, it is not just a side business. It's a part of an ecosystem to build engagement.' An alum of buy now, pay later company Affirm, where he previously served as VP of capital markets and bank partnerships, Chen joined the crypto exchange as its CFO in March, CFO Dive reported, amid speculation that the exchange had confidentially filed for an initial public offering. Chen's past experience includes serving as CFO for financial services company Nearside, which was acquired by Plastiq in 2022, as well as a stint as treasurer for Cross River Bank, according to his LinkedIn profile. 'It's really important to me that wherever I go in my career, I move towards an industry that's in high growth, high opportunity, high scaling, because it's frankly, a lot more fun,' Chen said of his decision to move to the Gemini exchange. Chen declined to comment on 'market speculation' when asked about a potential IPO. In his first few months in the CFO role for the exchange, Chen is largely in listening mode. 'I think one of the mistakes I've made earlier in my career is to arrive somewhere and say, 'what was I really good at before, and how quickly can I deploy that skill set now in my new role?'' Chen said. 'And I realize sometimes that's kind of like putting a square peg in a round hole.' Recommended Reading Verizon's interim CFO lands permanent seat 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
Yahoo
27-05-2025
- Business
- Yahoo
How the rise of stablecoins could stir up price swings in the $29 trillion Treasury market
Stablecoin adoption could boost demand for short-dated Treasury bills, Bank of America says. Stablecoins are pegged to fiat currency and backed by reserves of liquid assets like T-bills. Heightened issiance of Treasurys could steepen the yield curve, BofA wrote. With US stablecoin legislation winding its way through Congress, investors should be aware of possible disruptions to the Treasury market stemming from the growing corner of the crypto sector. Bank of America analysts said this week that accelerated stablecoin adoption is bound to inject demand for short-dated Treasurys, shaking up the US bond prices and volatility. "For each $1 that leaves traditional banks in favor of stablecoins, there will be a $0.90 incremental demand for USTs," the bank wrote on Tuesday. That's because stablecoins, a kind of crypto that's meant to hold a stable value pegged to a fiat currency, are backed by reserves of liquid assets like Treasurys. Tether — the world's largest stablecoin — held $98 billion worth of Treasury bills in its reserve assets as of March. As Congress irons out a regulatory framework for stablecoins, current proposals would require the token to hold reserves in cash, cash equivalents, or T-bills that mature in less than three months, Bank of America wrote. Crypto bulls have long expected a wave of stablecoin adoption if US banks are provided clear regulation on how to handle these assets. All eyes are now on the so-called Genius Act, which recently moved forward in the Senate. Such developments have prompted upbeat takes from White House, with Treasury Secretary Scott Bessent last week saying that stablecoins could trigger $2 trillion in T-bill demand: "We are going big on digital assets." But going big could be disruptive for Treasury holders, Bank of America noted. "Due to the strict reserve requirements imposed on stablecoin issuers, the U.S. Treasury would likely issue T-bills at greater levels leading to a steeper yield curve," the note said. Rising Treasury yields have already been a disruptive force in the stock market this year, but the yield curve's impact could be limited if the Treasury Department lowers the weighted-average maturities, helping meet shifting supply and demand dynamics. Beyond the bond market, BofA warned that increased stablecoin adoption could eventually pose a risk to bank deposits, pushing value creation outside of the bank sector. Read the original article on Business Insider 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
Business Insider
27-05-2025
- Business
- Business Insider
How the rise of stablecoins could stir up price swings in the $29 trillion Treasury market
With US stablecoin legislation winding its way through Congress, investors should be aware of possible disruptions to the Treasury market stemming from the growing corner of the crypto sector. Bank of America analysts said this week that accelerated stablecoin adoption is bound to inject demand for short-dated Treasurys, shaking up the US bond prices and volatility. "For each $1 that leaves traditional banks in favor of stablecoins, there will be a $0.90 incremental demand for USTs," the bank wrote on Tuesday. That's because stablecoins, a kind of crypto that's meant to hold a stable value pegged to a fiat currency, are backed by reserves of liquid assets like Treasurys. Tether — the world's largest stablecoin — held $98 billion worth of Treasury bills in its reserve assets as of March. As Congress irons out a regulatory framework for stablecoins, current proposals would require the token to hold reserves in cash, cash equivalents, or T-bills that mature in less than three months, Bank of America wrote. Crypto bulls have long expected a wave of stablecoin adoption if US banks are provided clear regulation on how to handle these assets. All eyes are now on the so-called Genius Act, which recently moved forward in the Senate. Such developments have prompted upbeat takes from White House, with Treasury Secretary Scott Bessent last week saying that stablecoins could trigger $2 trillion in T-bill demand: "We are going big on digital assets." But going big could be disruptive for Treasury holders, Bank of America noted. "Due to the strict reserve requirements imposed on stablecoin issuers, the U.S. Treasury would likely issue T-bills at greater levels leading to a steeper yield curve," the note said. Rising Treasury yields have already been a disruptive force in the stock market this year, but the yield curve's impact could be limited if the Treasury Department lowers the weighted-average maturities, helping meet shifting supply and demand dynamics. Beyond the bond market, BofA warned that increased stablecoin adoption could eventually pose a risk to bank deposits, pushing value creation outside of the bank sector.
Business Times
25-05-2025
- Business
- Business Times
Tether focuses elsewhere while US seeks to regulate stablecoins
[CHICAGO] While Congress is considering bills that would help integrate stablecoins more into mainstream finance, the largest issuer of the digital tokens says it will continue to focus on serving markets besides the US. On Monday (May 19), an industry-backed regulatory bill known as the Genius Act made its way through the Senate. The House Financial Services Committee has approved its own stablecoin measure, but it has yet to pass the chamber. 'It is important for us to see how the Genius Act is distinguishing between foreign issuers and domestic issuers,' Paolo Ardoino, chief executive officer of Tether Holdings, said on Friday. 'For us, the main interest will remain outside of the US.' El-Salvador-based Tether's USDT stablecoin accounts for more than 60 per cent of the stablecoin market, with 420 million users across emerging markets. The company, which has had several clashes with state and federal authorities over the years, has been increasingly involved in the US amid a friendlier regulatory environment under President Donald Trump's pro-crypto administration. Ardoino made his first visit to the US in March and stopped off in Washington while Trump held his inaugural digital-asset summit. 'We are looking at the Genius Act in a way that will allow us to be compliant,' Ardoino said. 'We can be compliant while still having a strong focus on foreign markets.' BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The stablecoin bills in the House and Senate require the tokens – usually pegged to the US dollar or another currency – to be fully backed by cash and 'safe assets' such as short-term Treasuries and make issuers subject to the Bank Secrecy Act and to anti-money-laundering regulations. In addition, both bills would allow regulators to sign off on foreign issuers such as Tether if they're subject to 'comparable' rules overseas. However, the question remains on how strictly the law will deal with those that don't comply. 'Stablecoins are surely important in the United States, but it's true that in the United States you have tons of ways to pay each other with Zelle, PayPal, debit cards, credit cards, cash, you name it,' Ardoino said. While Tether does not currently service US customers, most of the private company's reserve is comprised of assets that would be compliant with the proposed US legislation. The firm also backs its token with assets that would not be allowed, such as Bitcoin and secured loans. Because of its size, Tether would be regulated at the federal level if it chose to apply for a US license under such rules. In 2021, Tether settled with US authorities over allegations that it lied about its reserves. Today, those reserves are managed by Cantor Fitzgerald & Co, which was until recently led by Trump's Secretary of Commerce Howard Lutnick. Ardoino has said the company may issue a new stablecoin that will adhere to the requirements, making it more attractive to institutional investors. The more supportive regulatory environment in the US has also pushed Tether to progress towards delivering an audit of its reserves by a Big Four accounting firm, which Ardoino also said that Tether was still in discussions with. Currently, Tether releases quarterly attestations which are signed off by BDO Italia. 'They are going through a phase of adjustment, but a full audit is our priority,' Ardoino said. Stablecoins have become crucial to the functioning of crypto markets, with about US$243 billion of them in circulation in May 2025. On Friday, The Wall Street Journal reported that a consortium of major banks, including JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, are exploring whether to jointly issue a stablecoin. 'We are not worried about the competitors coming from big banks, because they will look at the Western world,' Ardoino said. 'Our customer base are the three billion people unbanked that are not touching the banking system.' BLOOMBERG
