Latest news with #STABLEAct
Arabian Post
4 days ago
- Business
- Arabian Post
Deutsche Bank Charts Course Toward Digital Currency Integration
Deutsche Bank is actively assessing the viability of stablecoins and tokenized deposits, signalling a strategic shift towards digital finance. Sabih Behzad, the bank's Head of Digital Assets and Currencies Transformation, confirmed that the institution is considering issuing its own stablecoin or participating in a broader industry initiative. This exploration aligns with the bank's broader efforts to modernize its payment systems and embrace blockchain technology. Behzad noted the increasing momentum of stablecoins, particularly within regulatory environments that are becoming more supportive, especially in the United States. He outlined that banks have various options in engaging with the stablecoin industry, ranging from acting as reserve managers to issuing their own stablecoins, either independently or as part of a consortium. In addition to stablecoins, Deutsche Bank is delving into tokenized deposit solutions aimed at enhancing payment use cases. These solutions involve digitizing traditional bank deposits using blockchain technology, potentially streamlining transactions and reducing costs. The bank has already conducted experiments in this domain, collaborating with UBS to simulate tokenized deposit payments. These trials utilized the Bundesbank's Trigger Solution, enabling blockchain-based systems to link to the central bank's payment infrastructure, facilitating seamless interbank settlements. ADVERTISEMENT Deutsche Bank's initiatives are part of a broader industry trend toward embracing digital assets and blockchain technology. The bank is participating in various projects, including Project Agorá, which aims to improve cross-border payments using tokenized assets. These efforts reflect a growing recognition among financial institutions of the potential benefits of digital currencies and tokenization in enhancing efficiency and creating new business models. The bank's exploration of stablecoins and tokenized deposits also coincides with evolving regulatory landscapes. In the European Union, the Markets in Crypto-Assets regulation is shaping the framework for digital assets, while in the United States, proposed legislation like the STABLE Act and the GENIUS Act are focusing on transparency, fully backed reserves, and anti-money laundering compliance. These regulatory developments are influencing how banks approach digital currencies and related technologies. Behzad emphasized the importance of a comprehensive approach to digital asset integration, highlighting the need for robust infrastructure encompassing issuance, trading, settlement, and custody. He pointed out that while tokenization offers significant opportunities, successful adoption requires 24/7 operations and advanced risk management, leveraging programmability and composability for maximum potential.
Yahoo
24-05-2025
- Business
- Yahoo
U.S. Stablecoin Bill Approval Could Trigger a Long-Term Crypto Bull Market: Bitwise
Progress on the stablecoin bill in the U.S. could lead to a multi-year crypto bull market, asset manager Bitwise said in a report Tuesday. The Senate agreed to advance the GENIUS Act to a final vote on Monday, the report noted, which means that the U.S. could pass its first piece of crypto legislation this summer. "Outside of the January 2024 approval of spot bitcoin ETFs, this is the most important regulatory development in the history of crypto. It may even be bigger," wrote Matt Hougan, chief investment officer at Bitwise. Stablecoins are cryptocurrencies whose value is tied to another asset, such as the U.S. dollar or gold. They play a major role in cryptocurrency markets and are also used to transfer money internationally. The Senate's Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act mandates federal regulation for stablecoins with a market cap of over $10 billion with the potential for state regulation if it aligns with federal rules. The House of Representatives' STABLE Act calls for state regulation without any conditions. Bitwise noted that stablecoin issuers have to follow a number of regulations but there is no "overarching federal framework." The GENIUS Act provides that regulatory framework. Once approved, this could set the stage for a long-term rally in crypto assets other than just bitcoin BTC, Bitwise said, and the biggest potential beneficiaries are ether ETH, solana SOL and decentralized finance (DeFi) assets such as uniswap UNI and aave AAVE. The stablecoin market could reach $2.5 trillion in size in no time, from $245 billion currently, the report 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
15-05-2025
- Business
- Yahoo
The stablecoin legislation still being pushed in Congress risks sowing the seeds of a financial crisis
Right now, American consumers and businesses alike are experiencing economic pain and massive uncertainty thanks to the Trump administration's policies, including costly tarrifs, and the reckless gutting of government programs and services and rules designed to protect the stability of our financial system. Signs of an economic slump may have abated somewhat, but concern is still warranted. Meanwhile, the value of the U.S. dollar on the world stage continues to fluctuate. This seems like a particularly bad time for Congress to consider legislation that could further undermine our economy and cheapen the U.S. dollar. Yet, some members of the House and Senate have been doing just that by pushing forward legislation that would create a weak regulatory regime for stablecoins: digital assets or 'cryptocurrency' with a value claimed to be reliably equivalent to official currency like the American dollar. The absurdity of this legislative move—now or perhaps ever—is finally dawning on a group of Democrats in the Senate, some of whom previously supported the legislation. Their wise choice last week to at least slow down this legislation was triggered in part by a desire to disassociate themselves from what lawmakers like Sen. Lisa Blunt Rochester see as the president's self-dealing attempts to personally benefit from a new crypto regime, including by selling his meme coins to foreign-based investors who hope to gain favor with the administration. Despite their name, stablecoins can be extremely volatile. Their trading values fluctuate and some have even collapsed. Bad actors have used them for money laundering and to finance sex trafficking, terrorism, and other criminal activities. They've also been used in fraud. The proposed legislation—the GENIUS Act in the Senate and the STABLE Act in the House—doesn't change the essential truth about stablecoins and other crypto assets. Namely, while many transactions may be listed on a blockchain publicly accessible via the internet, others occur off-chain, effectively in private. As for on-blockchain transactions, there are thousands of blockchains, making it complex and time-consuming to conduct related searches across them all, especially for banks or other firms that regularly conduct due diligence as part of their business. And the people behind the transactions aren't disclosed on the blockchain, so the viewer knows nothing about who engaged in the transactions or for what purposes. The crypto industry wants to keep it that way. Their allies in Congress have rejected proposals to ensure stablecoin issuers and exchanges follow the same rules as banks. Banks have to follow strict guidelines about who they can take money from and how they can use it. These rules, while imperfect, protect consumers and the economy from fraud, frequent bank collapses, and the financing of terrorists. Stablecoins present some of the same risks plus many new ones. Equally concerning, if corporations or social media platforms issue stablecoins, consumers could be encouraged to buy and store them with the company in hopes of taking advantage of special offers. The legislation contains language purportedly limiting such ties, but loopholes persist. If such corporations teeter financially, consumers might rush to redeem their stablecoins all at once, potentially triggering a chain reaction in the financial system that could ultimately threaten the stability of traditional banks. What's more, if Congress greenlights the weak government regulatory regime laid out in the current proposed legislation, it would give stablecoins a deceptive sheen of legitimacy. Financial stability at large could be threatened as consumers withdraw their bank deposits and money market fund assets in order to buy stablecoins, reducing the funds that banks and funds use to finance American businesses and households. Sponsors of the stablecoin legislation promise it will provide the guardrails necessary to avoid disaster, but backers have rejected nearly all the amendments proposed to ensure transparency, separation of commerce and banking, and other rules banks live by. Financial instability emanating from poorly regulated stablecoins (or other crypto assets) is a serious risk. Should a financial crisis happen—even a small one—the deregulation, dismantling, and disarray that our federal government is experiencing thanks to the Trump administration and Elon Musk's Department of Government Efficiency (DOGE) could delay the recovery and rescue efforts Americans expect from financial regulators. The GENIUS and STABLE acts could help make the president and the crypto industry a fortune. But they would also create an inadequately regulated, less transparent alternative banking system that could further threaten our economy. That's not what American families and businesses need, especially right now. The opinions expressed in commentary pieces are solely the views of their authors and do not necessarily reflect the opinions and beliefs of Fortune. Read more: America must harness stablecoins to future-proof the dollar Bank of America's CEO says stablecoins are coming very soon Exclusive: Meta in talks to deploy stablecoins three years after giving up on landmark crypto project Figure gains SEC approval for first interest-bearing stablecoin launch This story was originally featured on 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
13-05-2025
- Business
- Yahoo
Stablecoins to Go Mainstream in 2025 After U.S. Regulatory Progress: Deutsche Bank
Stablecoins are on the verge of mainstream adoption this year as the Trump administration pushes ahead with landmark crypto legislation, investment bank Deutsche Bank said in a research report Monday. Despite some resistance in the Senate last week, the bank said it still expects to see some progress on the stablecoin regulatory front this year. Stablecoins are cryptocurrencies whose value is tied to another asset, such as the U.S. dollar or gold. They play a major role in cryptocurrency markets and are also used to transfer money internationally. The Senate's Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act mandates federal regulation for stablecoins with a market cap of over $10 billion with the potential for state regulation if it aligns with federal rules. The House of Representatives' STABLE Act calls for state regulation without any conditions. Stablecoin market cap has exploded in the last five years. Total stablecoin market cap is currently $246 billion, a massive jump from the $20 billion seen in 2020, the German bank noted. The largest, Tether's USDT, has a market cap of around $150 billion. Stablecoins now "power over two-thirds of crypto trading, offering unmatched speed, 24/7 access, low-cost programmable payments," analysts Marion Laboure and Camilla Siazon wrote. Stablecoins are increasingly becoming strategic assets, the report said. "With 83% pegged to the U.S. dollar and Tether ranking amongst the largest holders of U.S. Treasuries, they're reinforcing dollar dominance in a fragmenting world." The Genius Act is expected to be passed in the U.S. in the coming months, and that could trigger an almost 10-fold jump in stablecoin supply, investment bank Standard Chartered said in a research report last month. Sign in to access your portfolio
Arabian Post
01-05-2025
- Business
- Arabian Post
Tether Charts Course for U.S. Stablecoin Amid Regulatory Shifts
Tether, the issuer of the world's most traded stablecoin, is preparing to launch a new U.S.-based digital dollar product as early as late 2025 or early 2026, contingent on the progress of stablecoin legislation in Congress. The move signals a strategic pivot as the company seeks to enter the domestic market it has long avoided. Chief Executive Paolo Ardoino confirmed that the company is developing a separate stablecoin tailored to U.S. regulatory requirements and consumer preferences. Unlike its flagship token, USDT—which dominates global stablecoin circulation with a market capitalisation of nearly $150 billion—this new offering would be issued through a U.S.-based entity and designed to comply with forthcoming federal oversight. Ardoino described USDT as one of the most successful financial exports of the United States, noting its widespread use in emerging markets as a hedge against inflation and currency instability. However, he acknowledged that U.S. consumers have largely gravitated toward alternatives like Circle's USDC, which has gained traction amid growing bipartisan support for stablecoin regulation. The proposed U.S.-specific stablecoin is expected to function as a digital checking account, integrating with point-of-sale systems and offering seamless transaction capabilities. Tether envisions a broader blockchain-powered payment network that could rival existing platforms like Square, potentially transforming the way consumers and merchants interact with digital assets. This initiative coincides with a significant shift in the U.S. regulatory landscape. President Donald Trump's administration has expressed support for cryptocurrency innovation, with key legislation such as the STABLE Act and the GENIUS Act advancing through Congress. These bills aim to establish clear guidelines for stablecoin issuers, including mandatory reserve requirements and regular audits, to enhance transparency and financial stability. See also US Crypto Trading Volume Plummets Amid Global Market Shift Tether's decision to develop a U.S.-compliant stablecoin reflects its commitment to aligning with these regulatory changes. The company has engaged in discussions with U.S. lawmakers and regulators to ensure that its new product meets the necessary standards. Ardoino emphasized Tether's proactive collaboration with law enforcement agencies, including the FBI and the Department of Justice, to address concerns related to illicit activities and compliance. Despite its global success, Tether has faced scrutiny over the transparency of its reserves and its lack of formal audits. In response, the company has appointed a Chief Financial Officer and is pursuing a full audit, engaging with major accounting firms to bolster credibility. These steps are part of a broader effort to enhance trust and demonstrate Tether's readiness to operate within the U.S. regulatory framework. , Tether considers US-only stablecoin as Trump loosens crypto rules) Arabian Post – Crypto News Network
