Stablecoin 2 Revolution Accelerates: GENIUS Act Sparks Mainstream Wave
September 8 2025 | Trading & Payments Insight Legislation Ignites Momentum The GENIUS Act, signed into law in July 2025, marks a watershed moment by establishing the first-ever comprehensive federal regulation for U.S. payment stablecoins—mandating full-reserve backing, transparency, audits, and AML/KYC compliance. Investors Paul Hastings While allowing issuers to be regulated at the state or federal level, the new framework aims to eliminate regulatory ambiguity and pave the way for broader adoption. JD Supra Womble Bond Dickinson Institutional & Market Response Major financial players like JPMorgan, Visa, Wells Fargo, and Mastercard are actively exploring or fast-tracking plans to roll out their own dollar-backed stablecoins. Investors Daily transaction volume has surged to $30 billion, and McKinsey projects growth to $250 billion over the next three years. Investors Risks & Regulatory Flashpoints A loophole in the GENIUS Act, permitting "rewards" on stablecoin holdings (that mimic interest), has drawn criticism, with some banks warning of potential deposit flight and disruption to lending capacity. WIRED Nobel laureate Jean Tirole sounded a cautionary note: in the event of a depeg or reserve instability, stablecoins could spark panic runs, potentially resulting in taxpayer-funded bailouts. Financial Times Bottom Line Stablecoin regulation in the U.S. has entered a new era. The GENIUS Act has propelled digital dollar assets from fringe to frontier, prompting major institutions to enter the fray—while exposing vulnerabilities that demand close monitoring. This evolving landscape offers lucrative trading and infrastructure plays—but traders should stay alert to legal challenges and systemic risk.
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stablecoin-2-revolution-accelerates-genius-act-sparks-mainstream-wave-2 • #1 (featured_topic)
Eleanor Chang
Aug 11, 2025 • 11:13 PM
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