This Week Summary on Stablecoin News:
- GENIUS Act Heads to Senate Vote, Marking a Potential Turning Point for US Stablecoin Regulation
- Revisions to GENIUS Act Aim to Limit Big Tech, Prompt Industry Reaction
- Stablecoin Adoption Surges as Global Market Hits $246B and Outpaces Visa
- Traditional Banks Double Down on Stablecoins for Cross-Border Payments
GENIUS Act Heads to Senate Vote, Marking a Potential Turning Point for US Stablecoin Regulation
Senator Bill Hagerty announced the Senate will vote this week on the GENIUS Act, a comprehensive stablecoin framework that seeks to bring clarity to the U.S. digital dollar space. The bill mandates 1:1 reserves, third-party audits, and compliance with anti-money laundering rules. If passed, it would represent the first major federal legislation aimed specifically at regulating fiat-backed stablecoins.
Hagerty emphasized bipartisan support, noting that digital dollar infrastructure is essential to preserving U.S. financial leadership. However, the bill also comes amid controversy, particularly questions around Donald Trump’s family investments in stablecoins. With rising geopolitical competition and growing use of dollar-backed assets abroad, the urgency around this legislation is mounting.
Revisions to GENIUS Act Aim to Limit Big Tech, Prompt Industry Reaction
A fresh round of revisions to the GENIUS Act is stirring conversation across crypto and tech. Lawmakers introduced changes aimed at preventing large technology platforms from issuing their own stablecoins without regulatory guardrails. These provisions are designed to avoid "shadow banking" risks and centralization of monetary influence by private corporations.
Industry insiders are split. Some see the restrictions as necessary to protect financial stability, while others argue they could stifle innovation. The revised bill also offers clearer definitions for who can issue stablecoins, setting eligibility standards for banks and fintech firms. As final negotiations play out, these adjustments could determine the pace and structure of US stablecoin adoption.
Stablecoin Adoption Surges as Global Market Hits $246B and Outpaces Visa
New data shows the stablecoin market has soared to $246 billion in circulating supply, up 1200% since 2020. More than $28 trillion in stablecoin transaction volume was recorded in 2024, surpassing traditional payment networks like Visa and Mastercard. Tether remains the dominant player, holding nearly $100 billion in U.S. Treasury bills to back its tokens.
The figures underscore the growing role of stablecoins as a digital financial backbone, not only within crypto, but increasingly in traditional finance. With programmable money enabling faster, lower-cost settlement, stablecoins are beginning to outperform legacy rails. Global demand for U.S. dollar-denominated assets, particularly in emerging markets, continues to fuel this rise.
Traditional Banks Double Down on Stablecoins for Cross-Border Payments
A Fireblocks report reveals that 90% of financial institutions are actively exploring or using stablecoins, particularly for cross-border use cases. Banks cite cost savings, faster settlement, and better liquidity management as major drivers for integrating stablecoins into treasury and payment operations.
As stablecoin infrastructure matures, traditional finance is seeking to capitalize on efficiencies long proven in crypto markets. Fireblocks highlights a growing shift toward asset tokenization and blockchain-native rails, with stablecoins serving as the foundation. With regulatory clarity on the horizon, banks are expected to accelerate deployment in global payments and beyond.
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This Weekly Summary is prepared by brava.xyz.
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Citations:
https://bloomingbit.io/en/feed/news/88372
https://cointelegraph.com/news/traditional-banks-stablecoins-cross-border-fireblocks
