Latest news with #GuidingandEstablishingNationalInnovationforU.S.StablecoinsAct
Arabian Post
2 days ago
- Business
- Arabian Post
Tether Strengthens Global Footprint as U.S. Tightens Crypto Regulations
Tether, the issuer of the world's most widely used stablecoin USDT, is intensifying its focus on emerging markets across Asia and Latin America, as U.S. lawmakers advance stringent legislation that could reshape the digital asset landscape. From January 2024 to February 2025, USDT accounted for between 62% and 91% of global stablecoin payment volumes, with Asia and Latin America leading adoption. Singapore, Hong Kong, and Japan collectively represented 36.3% of global stablecoin traffic, while the United States trailed at 18.7%. Tether CEO Paolo Ardoino reaffirmed the company's commitment to these regions, stating that the firm will continue prioritizing emerging markets outside the U.S., despite regulatory progress and a pro-crypto administration. Ardoino emphasized that the company sees more opportunity abroad than under strict upcoming U.S. laws. ADVERTISEMENT In a strategic move to deepen its presence in Latin America, Tether announced a significant investment in Orionx, a Chile-based cryptocurrency exchange and financial infrastructure firm. Orionx operates across Chile, Peru, Colombia, and Mexico, offering services such as cross-border payments, remittances, and treasury solutions. The investment aims to enhance Orionx's technological capabilities and scale stablecoin-powered infrastructure throughout the region. Ardoino highlighted the importance of this partnership, noting that the investment supports a high-impact company and advances Tether's broader vision of making stablecoin-powered financial tools accessible to underserved communities across Latin America. The surge in stablecoin adoption in Latin America is attributed to economic instability and high inflation rates in countries like Argentina and Brazil. Stablecoins offer a more stable store of value and a means to conduct transactions without relying on volatile local currencies. Tether's USDT has become a preferred option for everyday needs such as saving, sending money to family, and conducting business transactions. Meanwhile, in the United States, the regulatory landscape for stablecoins is undergoing significant changes. The Senate is advancing the Guiding and Establishing National Innovation for U.S. Stablecoins Act, which introduces stricter regulations on stablecoin issuers, focusing on consumer protection, national security, and financial system integrity. Key provisions include prohibiting yield offerings by stablecoins, mandating audits, and enhancing anti-money laundering protocols. Despite the U.S. administration's pro-crypto stance, with President Donald Trump and Vice President JD Vance advocating for the industry, the GENIUS Act reflects a bipartisan effort to establish a robust regulatory framework. The act has garnered support in the Senate, passing a motion to proceed with a 69-31 vote. However, the legislation has sparked debate among lawmakers. Some Democrats express concerns over potential conflicts of interest due to the Trump family's direct involvement in crypto ventures. Senators Chris Murphy and Elizabeth Warren have opposed the bill on ethical grounds, while others like Senators Cory Booker and Kirsten Gillibrand support it, emphasizing the need for consumer protection and clearer crypto regulations.
Arabian Post
3 days ago
- Business
- Arabian Post
Stablecoins Cement Dominance in Crypto Spot Trading
Stablecoins now account for over 80% of total spot trading volume in the cryptocurrency market in 2025, solidifying their position as the primary medium of exchange across major digital asset platforms. This shift marks a significant evolution in the structure of crypto markets, where fiat-backed digital tokens have overtaken traditional currency pairs in trading activity. Tether's USDT leads this transformation, commanding approximately 80% of stablecoin payment volume, underscoring its role as the most liquid and widely used asset in the ecosystem. The stablecoin market has experienced substantial growth, with its total capitalization surpassing $250 billion. This expansion is attributed to increasing institutional adoption and the demand for stable, dollar-pegged assets in volatile markets. USDT's market cap alone has exceeded $90 billion, reflecting its central role in facilitating crypto transactions. ADVERTISEMENT Regulatory developments have played a crucial role in this growth. In the United States, the proposed Guiding and Establishing National Innovation for U.S. Stablecoins Act aims to provide a comprehensive regulatory framework for stablecoins, encouraging broader issuance by traditional financial institutions. Similarly, the European Union's Markets in Crypto-Assets regulation, effective from December 2024, offers legal clarity for crypto assets, including stablecoins, fostering their integration into the financial system. The dominance of stablecoins is also evident in trading behaviors. USDT pairs, such as BTC/USDT and ETH/USDT, have become the preferred trading pairs on major exchanges, offering high liquidity and minimal slippage. This preference is particularly pronounced during periods of market volatility, where traders seek the stability of dollar-pegged assets. The integration of stablecoins into traditional financial systems is further exemplified by their use in cross-border payments and settlements. Companies like WorldPay have reported a 50% reduction in settlement times through the adoption of stablecoin-based systems. Additionally, the use of stablecoins in cross-border transactions is gaining traction in regions like Asia and Europe, where regulatory clarity and technological infrastructure support their adoption. The strategic importance of stablecoins is underscored by their growing role in global finance. With the majority of stablecoins pegged to the U.S. dollar, they reinforce the dollar's dominance in international trade and finance. This trend is expected to continue as regulatory frameworks mature and institutional adoption increases.
Yahoo
28-05-2025
- Business
- Yahoo
What to know about Stablecoins as GENIUS Act sees them grow in popularity
A new cryptocurrency regulation bill called the GENIUS Act is moving through the Senate, bringing increased attention to a lesser-known type of digital asset. On May 19, the Senate voted 66-22 to move the Guiding and Establishing National Innovation for U.S. Stablecoins Act forward. The GENIUS Act is new legislation that creates regulation for the payment of stablecoins. Stablecoins, by definition, are digital currencies that are backed by another form of money. It basically, such as the U.S. dollar, and creates a government-backed cryptocurrency. It then can be traded or used by consumers with more confidence than the currently, un-backed, currencies. Supporters say the bill, soon to be debated in the Senate, could stabilize stablecoins for broad use in payments and investments. Critics, however, worry that it might pose risks to consumers and the economy. Here's what to know about stablecoins: Stablecoins are a type of cryptocurrency designed to maintain a stable value, typically by being linked to a dollar or a commodity such as gold. Unlike Bitcoin or Ethereum, which can be highly volatile, stablecoins aim to offer price stability while retaining the advantages of digital assets, such as fast transactions and decentralized storage. Because stablecoins don't change value much, they are easier and safer to use for people who are new to crypto, as well as for businesses and traders. Stablecoins usually cost around $1 if they're pegged to the U.S. dollar. However, the price may fluctuate slightly between $0.99 and $1.01, for example, depending on market conditions or supply and demand. Peter Thiel, the former CEO of PayPal, has backed the stablecoin Reserve Protocol through his venture capital firm, Founders Fund. Andreessen Horowitz, a venture capital firm also known as a16z, has heavily invested in MakerDAO, the organization behind the DAI stablecoin. Circle, the funding company that issues USDC stablecoin, has funding from Goldman Sachs as well as BlackRock, Fidelity Investments, and Marshall Wace LLP. One big concern about stablecoins is transparency. Some companies that create stablecoins have been questioned about whether they actually have enough money or assets to back up all the coins they've issued. This makes people unsure about how valuable and stable these coins are. Regulators are also cautious because stablecoins operate outside of regular banks, which could cause problems for the overall financial system and might not protect consumers well. Stablecoins vary a lot in their operation. Many are run by central organizations, which goes against the idea of decentralization that is important in cryptocurrencies and can make people worried about trusting them. Stablecoins have also been linked to illicit activities, including money laundering and avoiding government controls on financial transactions, prompting calls for stricter regulations and oversight.
Yahoo
22-05-2025
- Business
- Yahoo
New crypto bill could turbocharge the stablecoin industry: 4 changes it might bring
New legislation that aims to regulate stablecoins, a type of cryptocurrency whose value is pegged to another asset, is on its way to a vote in the Senate. Should the bill become law, crypto bulls see potential for it to drive wider adoption of dollar-linked stablecoins, and possibly to strengthen the battered U.S. dollar. Cryptocurrencies also may end up playing a much bigger role in the broader financial system, analysts said. My ex-wife said she should have been compensated for working part time during our marriage. Do I owe her? 30-year Treasury yield is above 5% again — that's usually a bad sign for stocks My brother's 'good daughter' siphoned $70,000 from her father's accounts. Should she still get an inheritance? Bond 'vigilantes' are sending warnings globally. What does that mean for your portfolio? Three bank stocks to avoid — and 18 to buy — from analysts at Jefferies The bill, called the Guiding and Establishing National Innovation for U.S. Stablecoins Act — or Genius Act — aims to provide a regulatory framework for stablecoins and their issuers. If enacted, it would be the first legislation in the U.S. regulating the $248 billion stablecoin market. Stablecoins could play a more important role in financial markets down the road because they can serve as a bridge between traditional finance and the $3.3 trillion crypto market, while facilitating trading, borrowing and lending in the crypto ecosystem. Currently, 83% of stablecoins are denominated in U.S. dollars, according to a recent note from Deutsche Bank. The Genius Act moved through a procedural vote on Monday, allowing Senate Republican leaders to bring the legislation to the floor for a final vote, which could happen as soon as this week. But the legislation still faces hurdles. The Senate bill, if passed, would need to be reconciled with a version approved by the House Financial Services Committee, and then both chambers of Congress must agree on a single bill before sending a final version to President Donald Trump for his signature. 'There are still a lot of moving pieces,' said Jennifer Schulp, director of financial regulation studies at the Cato Institute, a libertarian think tank. The bill previously faced roadblocks after some Democrats expressed concerns around language that would have allowed big technology companies and elected officials to issue their own stablecoins. The current bill outlines specific regulators for different stablecoin issuers, details requirements for stablecoin reserves and lists consumer-protection measures, measures that have helped it garner bipartisan support, according to Stephen Gannon, a partner specializing in financial services at law firm Davis Wright Tremaine. Here are four ways the proposed bill could change the stablecoin market. If the Genius Act becomes law, it could greatly lower the regulatory risks for issuers of stablecoins and provide a much clearer path for legal compliance in terms of product design, the Cato Institute's Schulp said in a phone interview. While there are already hundreds of stablecoin issuers, the market is dominated by two stablecoins: One is known as USDT, which is issued by Tether, and another is USDC, a dollar-backed stablecoin developed by Circle. USDT and USDC account for 61% and 24%, respectively, of the market share in terms of market capitalization, according to data from CoinMarketCap. As of February, Tether was the 21st-largest foreign holder of U.S. Treasurys, after the United Arab Emirates and Germany, according to Deutsche Bank. Meanwhile, Circle filed for an initial public offering last month. If the Genius Act clears up regulatory uncertainty, more companies that have been on the sidelines are likely to launch their own stablecoins, according to Thomas Cowan, head of tokenization at Galaxy Digital, a crypto financial services firm. He expects stablecoin issuance from traditional payments institutions to pick up if the bill becomes law, given that companies would 'have the rules of the road,' he said in a phone interview. He also thinks the technology could help more companies transform their back-end systems. On that front, Bank of America BAC Chief Executive Brian Moynihan said in February that the bank was likely to issue a stablecoin once legislation was passed. Fidelity also said its digital-assets arm has been testing a stablecoin. Cowan said he also expected to see more tokenized financial assets, such as bonds or equities, being launched in the next 18 months if the Genius Act becomes law. Tokenization refers to the digital representation of assets on a blockchain. Stablecoins are the 'bedrock' of tokenization, as a dollar-backed stablecoin is essentially a tokenized dollar, Cowan said. 'If stablecoins are increasingly looked at as a default, we'll see the rest of the industry begin to go up on the risk curve and begin to monetize other financial assets' such as stocks and bonds. Wall Street heavyweights BlackRock BLK and Franklin Templeton launched tokenized money-market funds in 2024 and 2021, respectively. If the stablecoin bill gets passed, it could increase the adoption of digital assets in general, noted Gannon at Davis Wright Tremaine. He expects the stablecoin market cap to reach $2 trillion to $2.5 trillion by 2030. Traders often park their assets in stablecoins instead of fiat currencies when trading crypto to enable faster transactions. Stablecoins also already play a significant role in decentralized finance, supporting crypto lending and borrowing. Decentralized finance refers to financial activities that happen on blockchains and that are executed without middlemen. As more people adopt stablecoins, there 'will be more opportunities to use stablecoins in new or better blockchain-based products — to self custody, make purchases, send money, use DeFi [decentralized finance] and more,' Sam Broner, a partner at venture-capital fund a16z crypto, wrote in a recent note. The rise of stablecoins may amplify the dominance of the U.S. dollar, noted Jim Reid, head of global macro and thematic research at Deutsche Bank. The greenback's status as a reliable safe haven was tarnished amid the extreme market volatility earlier this year as Trump aggressively rolled out his tariff agenda. 'Essentially, stablecoin providers are acting like money-market funds supporting U.S. short-term debt markets and driving currently non-USD liquidity holdings into USD,' Reid wrote in a recent client note. If the Genius Act becomes law, people in other countries might have more trust in dollar-denominated stablecoins issued by U.S. companies as a way to gain exposure to the greenback and U.S. Treasurys, because reserves of the coins will be attested, noted Dea Markova, director of policy at crypto infrastructure firm Fireblocks. Read: The biggest winner from potential stablecoin legislation may be the U.S. dollar. Here's why. Robert Schroeder contributed. U.S. budget deficits are reaching the tipping point where they could start hurting stocks My father's widow keeps sending me $200 checks in the mail. Why would she do this? I'm 57 and ready to retire next year on $7,500 a month, but my wife says no. Who's right? My husband and I spend more money on our daughter and her family than on my single son. Do we compensate him? 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Yahoo
21-05-2025
- Business
- Yahoo
Crypto industry may get some much-needed rules to bring it mainstream
The wild west days of the cryptocurrency market may be coming to an end as Congress takes a step closer to passing first-of-its-kind legislation. The GENIUS Act, officially the Guiding and Establishing National Innovation for U.S. Stablecoins Act, passed a key procedural hurdle in the Senate on May 19. The bipartisan vote limits debate on the bill and allows the Senate to move forward to final passage. The bill would create a regulatory framework for stablecoins, a type of cryptocurrency tied to the value of an asset like the U.S. dollar. The bill remains controversial and far from final passage. A vote likely won't happen until after Memorial Day at the end of the month. Still, the bill is considered a major win for the crypto industry. The industry-backed bill would help protect consumers and set industry standards that could allow stablecoins to become mainstream for digital payments and other financial instruments, advocates say. The bill "is the type of policy proposal that could lead to frictionless payments and help millions of Americans gain greater access to the financial system,' said Austen Jensen, Retail Industry Leaders Association executive vice president of government affairs. The bill also 'reinforces U.S. leadership in digital assets,' Sarah Milby, Blockchain Association Interim Chief Executive and Head of Policy, said in a statement. A stablecoin is a type of cryptocurrency designed to maintain a stable value relative to an asset, like the U.S. dollar. Pegging the unit to a stable asset helps minimize price fluctuations, making them more suitable for everyday transactions and as a reliable store of value. Many stablecoins are also backed by reserves of fiat currency or other assets like U.S. Treasuries. The bill establishes rules for stablecoin issuers, including: Firms must hold a reserve of assets underlying the stablecoin so consumers can always easily cash out their holdings. Issuers must prioritize stablecoin holders for repayment in case of bankruptcy. Issuers must abide by some anti-money laundering rules and anti-terrorism sanctions. The bill also would prohibit 'any member of Congress or senior executive branch official from issuing a payment stablecoin product during their time in public service.' Critics say the bill doesn't go far enough to protect consumers or stop President Donald Trump from lining his own pockets. World Liberty Financial, a crypto venture linked to Trump, launched USD1, a U.S. dollar-backed stablecoin. 'The GENIUS Act will accelerate Trump's corruption by supercharging the size of the stablecoin market and the reach and profitability of USD1,' said Sen. Elizabeth Warren (D-Massachusetts), one of the bill's most vocal critics, on the Senate floor on May 19. USD1, launched in March, is already the fifth largest stablecoin in the world. 'Passing this bill means that we can expect more anonymous buyers, big companies, and foreign governments to use the President's stablecoin as both a shadowy bank account shielded from government oversight and as a way to pay off the President personally,' Warren said. 'For crooks, it's a two-for-one.' She also warned of another financial crisis ahead and said Americans 'will bear the costs of a massive financial crash facilitated by the stablecoin market if Congress passes this bill.' 'This weak bill is worse than no bill at all,' Warren said. Medora Lee is a money, markets, and personal finance reporter at USA TODAY. You can reach her at mjlee@ and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday. This article originally appeared on USA TODAY: What is the GENIUS Act and what it may mean for consumers
