Archive for June 2025
The “GENIUS Act,” officially known as the Guilding and Establishing National Innovation in U.S. Stablecoins Act, represents a significant shift in the financial landscape. This legislation allows private entities, including banks, hedge funds, and technology firms, to issue payment US dollar stablecoins. This opens up a new frontier for financial transactions and investment opportunities.
What Are Payment US Dollar Stablecoins?
Payment US dollar stablecoins are cryptocurrencies designed to maintain a 1:1 value with the U.S. dollar. They are intended to facilitate seamless transactions with the stability of a traditional fiat currency.
Who is Eligible to Issue US Dollar Stablecoins?
Qualified issuers include subsidiaries of banks and nonbank companies that receive approval from the Office of the Comptroller of the Currency (OCC). A critical requirement for approval is maintaining a reserve that covers 100% of the stablecoin issuance. This reserve can consist of actual U.S. dollars or short-term Treasury bills with a maturity of less than 90 days.
Existing USD Stablecoins
The market already features several USD stablecoins. Tether’s USDT and Circle’s USDC are the two largest, with a combined market value of approximately $250 billion. The daily transaction volume of USD stablecoins exceeds $20 billion, primarily within the cryptocurrency ecosystem.
The Investment Scientist 