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Crypto Insight
02-08-2025
- Business
- Crypto Insight
GENIUS sets new stablecoin rules but remains vague on foreign issuers
The signing of the GENIUS Act into law established the first comprehensive regulatory framework for US-issued stablecoins. Supporters argue it will enhance trust, drive mainstream adoption and bolster the dollar's status as the global reserve currency. With stablecoins now gaining traction in global finance, the GENIUS Act could also prove a boon for the developing world, attract institutional interest and drive a resurgence in decentralized finance (DeFi). However, concerns remain over unresolved issues, such as the regulation of foreign issuers, doubts about the ban on yield-bearing stablecoins and the potential dominance of corporate and traditional finance players. Industry experts surveyed by Cointelegraph agree that the GENIUS Act is a landmark event for the US blockchain and stablecoin sector, if not the global crypto industry. 'Banks, fintechs and even large retailers — essentially anyone with significant consumer or institutional distribution — will all be considering issuing their own stablecoin,' Christian Catalini, founder of the MIT Cryptoeconomics Lab, told Cointelegraph, adding that a stablecoin strategy will now be an integral part of all payments and financial services companies. GENIUS Act's foreign stablecoin 'loophole' A major weakness of the GENIUS Act is what the Atlantic Council calls the 'Tether loophole.' The US think tank argued in a blog post that the US stablecoin law did not 'adequately' regulate offshore stablecoin issuers. The law aims to bring order to US stablecoins by imposing strict rules on reserves, financial disclosures and sanctions compliance. This could put local issuers at a competitive disadvantage and potentially encourage new issuers to incorporate in less-demanding jurisdictions offshore. 'The foreign issuer loophole was not sufficiently fixed,' Timothy Massad, a research fellow at the Kennedy School of Government at Harvard University and former chairman of the US Commodity Futures Trading Commission, told Cointelegraph. Massad is a co-author of the Atlantic Council blog. The GENIUS Act requires Tether and other foreign issuers to meet standards 'comparable' to those of US issuers, but what qualifies as 'comparable' isn't clearly defined, Massad added. But Christopher Perkins, president of CoinFund, said that regulated US stablecoins give end users confidence that their holdings are fully backed, paving the way for more companies to set up shop in the US. 'I think many investors will choose the onshore regulated version of stablecoins because of the incremental confidence they deliver.' In a recent media interview, Tether CEO Paolo Ardoino said that the company's 'foreign stablecoin' USDt will comply with the GENIUS Act. It is also planning to launch a domestic stablecoin under the new law. Stablecoin issuance goes mainstream with GENIUS The GENIUS Act opens doors for giant US commercial banks like Bank of America to issue their own stablecoins, while mega retailers like Walmart and Amazon are also reportedly exploring stablecoin issuance. The prospect of regulated corporate stablecoin issuers raises questions about how crypto-native stablecoins like Tether and USDC will be affected. 'Tether less so, as its lead offshore is substantial,' Catalini said. He added that most of the new competition will focus on the US market, which presents 'a more significant challenge for USDC.' Meanwhile, Keith Vander Leest, US general manager at London-based stablecoin infrastructure startup BVNK, said that new players won't necessarily flood the market. Non-crypto native firms launching stablecoins will probably move cautiously, beginning with small-scale pilot programs to build comfort and competency. 'It is more likely for banks to move quicker into issuing than corporates,' Vander Leest told Cointelegraph. Many will be 'use-case specific' stablecoins. The number of new stablecoins that 'reach scale' will be limited, he said. GENIUS and stablecoins increase US debt demand The White House claims that the GENIUS Act will increase demand for US debt and cement the dollar's status as the world's reserve currency. Treasury Secretary Scott Bessent said that dollar-linked stablecoins could eventually reach at least $2 trillion in market capitalization, up from today's market cap of about $267 billion. Markus Hammer, a consultant and principal at HammerBlocks, said that because US-issued stablecoins must be 100% backed by US dollars or their equivalents, they will naturally drive up demand for US debt. 'Emerging markets, in particular, may become significant users of US dollar stablecoins, as these offer more stability and efficiency compared to their often fragile local financial systems,' he told Cointelegraph. But Hammer disagreed on the dollar's renewed dominance, claiming that trust in US-based currencies is gradually eroding. According to Massad, the act's impact will depend on whether stablecoins become an important means of payment or remain a niche use case. Business-to-business payments make up the bulk of international payments, and it's not clear whether there will be significant growth in the use of stablecoins for that purpose, he said. GENIUS reshapes stablecoin utility The GENIUS Act prohibits stablecoin issuers from paying 'interest or yield' to individuals holding stablecoins. Could that put US-issued stablecoins at a competitive disadvantage? 'Without yield, stablecoins are a depreciating asset,' Perkins said. 'And while many believe that payments are the killer use case for stablecoins, they also serve as an important store of value in the developing world. Holders will turn to DeFi to reconstitute yield.' In time, it is possible that yield-bearing securities or tokens will become more accessible, continued Perkins. Until then, institutional investors, who have a fiduciary duty to earn interest on their holdings, may need to explore other ways to earn interest. They could offer compliant revenue-sharing agreements with issuers to gain yield exposure, for instance. It almost seems counterintuitive, but the removal of yield on stablecoins could actually be good news for Ethereum-based DeFi as the main alternative for passive income generation. Overall, 'the signing of the Act is a significant milestone,' Massad said. 'Stablecoins are the most useful application of blockchain technology to date, and even if they don't become a major means of payment, they will generate useful competition into payments — we may see tokenized bank deposits soon.' Catalini of MIT Cryptoeconomics Lab called stablecoins 'the first tokenized assets to start its journey towards mainstream adoption.' He added that assets such as bonds and securities will soon follow. The GENIUS Act sets a regulatory foundation for stablecoin issuance in the US and signals mainstream adoption is underway. Despite concerns over unresolved issues such as the vague language around foreign issuers, industry leaders view the law as a critical step for regulated dollar-backed tokens. Source:
Yahoo
20-05-2025
- Business
- Yahoo
What to know about the GENIUS Act, a crypto regulation bill
The Senate voted 66-22 late Monday to advance the GENIUS Act, a bill that aims to regulate some cryptocurrencies. The bill faced some Democratic opposition in recent weeks over President Donald Trump's cryptocurrency ventures, but it ultimately garnered support from 16 Democrats, including Sen. Cory Booker, D-N.J., and Sen. Adam Schiff, D-Calif. The industry-backed measure establishes rules targeting stablecoins, a type of cryptocurrency pegged to the value of another asset, often the U.S. dollar. Proponents hailed the bill as a means of protecting consumers and setting industry standards, which could allow such crypto coins to become a mainstream tool for digital payments and other financial instruments. Critics warned, however, that the bill fails to address conflict-of-interest concerns exemplified by Trump, and it risks endangering consumers and the wider economy with a weak set of rules. MORE: Winners of Trump's meme coin contest potentially include foreign investors 'This sets the stage for these assets to go mainstream,' Christian Catalini, founder of the MIT Cryptoeconomics Lab, who supports the measure, told ABC News in a statement. Here's what to know about the GENIUS Act, and what it means for you. The GENIUS Act concerns the issuance and exchange of stablecoins, a form of digital currency backed by another form of currency like the U.S. dollar or a commodity like gold. Stablecoins are designed to be less volatile than other forms of cryptocurrency, which can experience large price swings and, in turn, pose difficulty for individuals using them to facilitate a purchase or sale. The bill sets rules for stablecoin issuers, including a mandate that firms hold a reserve of assets underlying the cryptocurrency. That stipulation aims to protect consumers, who otherwise risk a failure to cash out their holdings in the event of a rapid, widespread offloading of coins. In a separate effort to safeguard consumers, the measure would require issuers to grant coin holders priority for repayment in the event of a bankruptcy. The measure also mandates issuers abide by some anti-money laundering rules and anti-terrorism sanctions. Supporters of the GENIUS Act applaud the measure as a first-of-its-kind effort to formalize a key segment of the cryptocurrency industry, offering safeguards for consumers, allowing entry for conventional financial firms and growing the digital currency market. 'This opens the floodgates,' Catalini said. 'You'll see entry by many issuers. Consumers will all have more choices. This will bring more competition and innovation in payments.' The new rules, Catalini added, take the onus off of consumers to discern between good and bad actors within the stablecoin sector, instead opening up competition between firms based on the quality of their products. 'It becomes a game of who can deliver better use-cases and features to consumers and businesses the fastest,' Catalini said. Critics of the measure, however, say it amounts to an industry-friendly set of weak regulations that fail to adequately protect consumers and police illicit trading of stablecoins. 'While a strong stablecoin bill is the best possible outcome, this weak bill is worse than no bill at all,' Sen. Elizabeth Warren, D-Mass., said on the Senate floor Monday. Critics say the shortcomings of the bill are exemplified by its inability to address conflict-of-interest concerns raised by Trump's dealings in stablecoins. MORE: What does the Moody's rating downgrade mean for the economy? In March, Trump-backed crypto firm World Liberty Financial issued a stablecoin USD1. An Abu Dahbi-based investment firm earlier this month used the stablecoin to make a $2 billion investment in crypto exchange Binance, putting Trump's company in a position to profit from the deal. Trump has denied any wrongdoing. The bill features a stipulation that would 'prohibit any member of Congress or senior executive branch official from issuing a payment stablecoin product during their time in public service.' Still, Warren said, the measure inadequately protects against concerns raised by Trump's venture. 'This bill provides even more opportunities to reward buyers of Trump's coins with favors like tariff exemptions, pardons, and government appointments,' Warren added. What to know about the GENIUS Act, a crypto regulation bill originally appeared on
20-05-2025
- Business
What to know about the GENIUS Act, a crypto regulation bill
The Senate voted 66-22 late Monday to advance the GENIUS Act, a bill that aims to regulate some cryptocurrencies. The bill faced some Democratic opposition in recent weeks over President Donald Trump's cryptocurrency ventures, but it ultimately garnered support from 16 Democrats, including Sen. Cory Booker, D-N.J., and Sen. Adam Schiff, D-Calif. The industry-backed measure establishes rules targeting stablecoins, a type of cryptocurrency pegged to the value of another asset, often the U.S. dollar. Proponents hailed the bill as a means of protecting consumers and setting industry standards, which could allow such crypto coins to become a mainstream tool for digital payments and other financial instruments. Critics warned, however, that the bill fails to address conflict-of-interest concerns exemplified by Trump, and it risks endangering consumers and the wider economy with a weak set of rules. 'This sets the stage for these assets to go mainstream,' Christian Catalini, founder of the MIT Cryptoeconomics Lab, who supports the measure, told ABC News in a statement. Here's what to know about the GENIUS Act, and what it means for you. What is the GENIUS Act? The GENIUS Act concerns the issuance and exchange of stablecoins, a form of digital currency backed by another form of currency like the U.S. dollar or a commodity like gold. Stablecoins are designed to be less volatile than other forms of cryptocurrency, which can experience large price swings and, in turn, pose difficulty for individuals using them to facilitate a purchase or sale. The bill sets rules for stablecoin issuers, including a mandate that firms hold a reserve of assets underlying the cryptocurrency. That stipulation aims to protect consumers, who otherwise risk a failure to cash out their holdings in the event of a rapid, widespread offloading of coins. In a separate effort to safeguard consumers, the measure would require issuers to grant coin holders priority for repayment in the event of a bankruptcy. The measure also mandates issuers abide by some anti-money laundering rules and anti-terrorism sanctions. What do supporters and critics say about the GENIUS Act? Supporters of the GENIUS Act applaud the measure as a first-of-its-kind effort to formalize a key segment of the cryptocurrency industry, offering safeguards for consumers, allowing entry for conventional financial firms and growing the digital currency market. 'This opens the floodgates,' Catalini said. 'You'll see entry by many issuers. Consumers will all have more choices. This will bring more competition and innovation in payments.' The new rules, Catalini added, take the onus off of consumers to discern between good and bad actors within the stablecoin sector, instead opening up competition between firms based on the quality of their products. 'It becomes a game of who can deliver better use-cases and features to consumers and businesses the fastest,' Catalini said. Critics of the measure, however, say it amounts to an industry-friendly set of weak regulations that fail to adequately protect consumers and police illicit trading of stablecoins. 'While a strong stablecoin bill is the best possible outcome, this weak bill is worse than no bill at all,' Sen. Elizabeth Warren, D-Mass., said on the Senate floor Monday. Critics say the shortcomings of the bill are exemplified by its inability to address conflict-of-interest concerns raised by Trump's dealings in stablecoins. In March, Trump-backed crypto firm World Liberty Financial issued a stablecoin USD1. An Abu Dahbi-based investment firm earlier this month used the stablecoin to make a $2 billion investment in crypto exchange Binance, putting Trump's company in a position to profit from the deal. Trump has denied any wrongdoing. The bill features a stipulation that would 'prohibit any member of Congress or senior executive branch official from issuing a payment stablecoin product during their time in public service.' Still, Warren said, the measure inadequately protects against concerns raised by Trump's venture. 'This bill provides even more opportunities to reward buyers of Trump's coins with favors like tariff exemptions, pardons, and government appointments,' Warren added.
Associated Press
05-03-2025
- Business
- Associated Press
Crypto Industry Insiders Partner With Founders of Money20/20, Future Proof, Fintech Meetup & Shoptalk to Launch Mint, a Groundbreaking New Crypto Event Where Real Business Gets Done
Events industry disruptors Anil D. Aggarwal, founder and former CEO of Money20/20, Fintech Meetup, Shoptalk and Groceryshop, and Matt Middleton, founder and CEO of Future Proof, have partnered with crypto industry insiders Mitul Parmar and Bitwise CIO Matt Hougan to launch Mint, a groundbreaking new U.S. crypto event where real business gets done. Mint will be held on September 14-17, 2025 on Huntington Beach, CA with 2,500+ leaders from the crypto community and a growing number of open-minded changemakers from traditional industries, including 175+ incredible speakers across 80+ insightful sessions. Mint sets a new standard for U.S. crypto events because: Mint is where real business gets done with a unique focus on real use cases, users, and revenue Mint features crypto's biggest ever meetings program with 25,000+ prescheduled 1:1 15-minute meetings, making it easy to meet new people, discover new companies, and capture incredible opportunities that deliver real results Mint includes crypto's largest ever peer collaboration program with 250+ curated and valuable intimate group discussions to discuss challenges, brainstorm opportunities, and share learnings Mint is the only entirely outdoor crypto event, and will be held on Huntington Beach in Southern California, making for a fun, first-class experience that combines incredible learning, efficient networking, and memorable social activities Mint is created by founders with a 15-year track record of disrupting incumbents and creating industry-leading events across multiple categories, including financial services and commerce, that deliver outsized results for everyone Mint has gained significant early, pre-launch traction with 70+ leading companies from crypto as well as traditional industries joining as Launch Partners and/or speakers, including: Alchemy Google Story Aptos J.P. Morgan Solana Foundation Ava Labs Kraken Sui Foundation Berachain Lightspark T-Mobile BinanceUS Monad Foundation Trust Wallet Coinbase Plaid Walmart FIS Polygon Worldpay Galaxy Republic Zero Hash Agora Kiln Reown Bitwise MIT Cryptoeconomics Lab Serotonin Blockdaemon Mesh Silicon Valley Bank CoinFund OrangeDAO Skybridge Capital DAWN Pantera Capital Socure DIMO PayPal Ventures Sol Strategies Dragonfly Capital Portal Sphere Electric Capital Proof of Coverage Stanford Blockchain Accelerator Figure Markets Privy Stellar Framework Ventures Prove Superstate GeoComply Public Syndicate Helium Mobile Quantstamp The Venture Dept. Hivemapper QuickNode Trust Machines Incode Render World Foundation Mint will feature the most popular crypto podcasts live onsite, including Bankless, Bits + Bips, Crypto Prime, Empire, Talking Bitcoin, and Unchained. Mint's 50+ early confirmed speakers include: Abe McCallum Bam Azizi Himal Makwana Head of Consumer Fintech Co-Founder & CEO Global Head of Corporate Strategy Walmart Mesh FIS Alex Kruger Christian Catalini Ian Lee Co-Host Founder Co-Founder Bits + Bips MIT Cryptoeconomics Lab Syndicate Amanda Cassatt Connor Lovely James Seyffart CEO & Founder Founder & CEO Co-Host Serotonin Proof of Coverage Bits + Bips Amir Haleem David Hoffman Jason Pate Founder & CEO Co-Founder Chief Strategy Officer Helium Mobile Bankless Plaid Andrew Durgee Dan Thygesen Jason Yanowitz President SVP, Product Partnerships & Growth Co-Host; Co-Founder of Blockworks Republic T-Mobile Empire Anthony Scaramucci Edward Woodford Jason Zhao Founder & Managing Partner CEO & Co-Founder Co-Founder Skybridge Capital Zero Hash Story Ariel Seidman Eowyn Chen Jess Houlgrave CEO & Co-Founder CEO CEO Hivemapper Trust Wallet Reown (fka WalletConnect) Arjun Sethi Eunice Giarta Jim Hiltner Co-CEO Co-Founder & GM Co-Founder, Head of Business Development Kraken Monad Foundation Superstate Avichal Garg Henri Stern Joe McCann Managing Partner Co-Founder & CEO Co-Host Electric Capital Privy Bits + Bips John Nahas Leif Abraham Nate Geraci Chief Business Officer Co-Founder & Co-CEO Host Ava Labs Public Crypto Prime Jules Urbach Lesley O'Neill Neil Chatterjee Founder Chief Compliance Officer CEO & Co-Founder Render BinanceUS DAWN Keerthi Moudgal Matt Hougan Nikil Viswanathan Executive Director, Head of Product - Kinexys Digital Assets Chief Investment Officer Co-Founder & CEO J.P. Morgan Bitwise Alchemy Keone Hon Matthew Homer Paul Veradittakit Co-Founder & GM General Partner Managing Partner Monad Foundation The Venture Dept. Pantera Capital Konstantin Richter Michael Anderson Rich Widmann Founder & CEO Co-Founder Head of Strategy, Web3 Blockdaemon Framework Ventures Google Laszlo Szabo Mike Cagney Rob Hadick Co-Founder & CEO Co-Founder and CEO General Partner Kiln Figure Markets Dragonfly Capital Laura Shin Nabil Manji Rob Solomon CEO & Journalist SVP, Head of Fintech Growth & Financial Partnerships Co-Founder Unchained WorldPay DIMO Leah Wald Natalie Brunell Shan Aggarwal President & CEO Host VP, Corporate & Business Development + Coinbase Ventures Sol Strategies Talking Bitcoin Coinbase Coinbase 'We believe crypto and blockchain are at the tipping point, ready to transform a wide range of industries over the coming years,' said Mitul Parmar, Co-Founder and CEO of Mint. 'Mint was created to catalyze that transformation and take crypto from awareness to mass adoption by accelerating crypto's pursuit of real users, revenue, and use cases.' 'For more than a dozen years, Matt Middleton and I have had outsized success in launching and leading disruptive new events, each of which have set completely new standards in their respective sectors with cutting-edge experiences, programs, and formats that we've pioneered,' said Anil Aggarwal, Co-Founder of Mint. 'We're looking forward to doing it again, this time by bringing together the already tight-knit crypto community, and helping bridge it to the most open-minded changemakers at the frontier of traditional industries.' For more information about Mint, visit follow us on X, LinkedIn, and Instagram, and join our Telegram group. About Mint From the founders of Money20/20, Future Proof, Fintech Meetup and Shoptalk, Mint is a groundbreaking new U.S. crypto event featuring unprecedented formats, including the biggest and most productive 1:1 meetings program in the history of crypto. Crypto and blockchain are at a tipping point, ready to transform a wide range of industries over the coming years. Mint catalyzes that transformation and takes crypto from awareness to mass adoption by focusing on real users and use cases. Join more than 2,500 leaders from the crypto community and a growing number of open-minded changemakers from traditional industries in a fun, friendly, and unforgettable outdoor beachside environment to connect, collaborate, and get real business done. Mint will be held on September 14-17, 2025, in an entirely outdoor venue on Huntington Beach, California. Mint [email protected] X: @mitulparmar_ SOURCE: Future Proof Copyright Business Wire 2025. PUB: 03/05/2025 08:57 AM/DISC: 03/05/2025 08:57 AM
