Financial Performance - Circle's total revenue grew 52% year-over-year [1] - USDC in circulation grew 90% year-over-year to the end of Q2 [6] - USDC year-to-date growth was 49% [7] Stablecoin and Treasury Market - Stablecoins need to be backed by something, typically treasuries [10] - The advent of stablecoins could boost the treasury market because more people will need to buy treasuries to back the stablecoins [10] - Stablecoin money is going to be a very safe, fully reserved form of money [12] Future Growth and Market Outlook - Analysts estimate stablecoin money growth (CAGR) ranges from 25% to 90%, with an average CAGR of 60% [7] - Circle would be happy to grow 40% a year [7] - The internationalization of digital dollars is a major growth driver [15] - There is global demand for holding and transacting with digital dollars [16]

Stablecoin Fundamentals - Stablecoins offer the allure of digital currency with free movement and no transaction costs [1] - The fundamental use case of stablecoins is for transactions, not for holding as an investment [2] - Buying stablecoins means foregoing opportunity cost or interest, approximately 4% yield, that could be earned from CDs or treasury bills [3] - Stablecoin companies invest the proceeds from stablecoin sales in very short-term treasury bills as collateral [3] Impact on Banking System - The US banking system relies on deposits, and a shift to stablecoins could reduce deposits available for lending [5][6] - Reduced bank deposits could lead to a decline in credit availability for car loans, student loans, and mortgages [6][7] - Banks could potentially offer stablecoins as a service to clients, similar to existing digital payment rails like Zelle [11][12] Market and Economic Risks - Stablecoin investments are limited to short-term Treasury bills, potentially distorting the short-term Treasury curve [7][8] - Concerns exist that people are buying stablecoins as part of a portfolio, despite them not being an asset that appreciates in value [14] - The buildup in the overall supply of stablecoins suggests they are not solely being used for transactional purposes [16] - Increased demand for short-term bills due to stablecoins may dislocate the short-term bill market from the Treasury curve [19]

Market Trends & Adoption - Major cryptocurrencies experienced slight declines at the beginning of the week, with Bitcoin and Ether both dipping about 0.5% [2] - A Gallup poll indicates that 14% of US adults own Bitcoin or other cryptocurrencies, with ownership among US investors rising from single digits in 2021 to 17% currently [6][7] - PayPal is rolling out a service allowing US merchants to accept over 100 cryptocurrencies for payments, aiming for cheaper and faster cross-border transactions [4] Company Initiatives & Developments - PayPal's new feature, "pay with crypto," connects customer crypto wallets and charges a 0.99% transaction fee, potentially decreasing transaction costs by up to 90% compared to international credit card processing [5] - Sharplink is increasing its efforts to buy ETH as part of a crypto treasury strategy, driven by the belief that Ethereum will become the global financial infrastructure foundation [10][11][12] - Consensus is positioning MetaMask to transform decentralized finance and has exciting news coming soon for its Lineia layer 2 ecosystem, including a token generation event [18][19] Regulatory Landscape & Concerns - Democratic senators are probing the Federal Housing Finance Agency (FHFA) regarding proposals to allow unconverted crypto assets in mortgage loan underwriting, citing concerns about volatility [8][9] - The senators are requesting information from the FHFA regarding its decision-making process to assess the potential risks and benefits to the order and the implications for the housing market [8][9] - Regulators are doing great things for the industry recognizing that America is in a world-leading position [23]

TNC announcing a strategic partnership with Coinbase this hour, expanding access to digital assets for their banking clients and their institutional investors, providing some banking services for Coinbase. Our Leslie Picker brought us that news earlier this morning and joins us now alongside PNC CEO. Morning Leslie.Hi, good morning Carl and thank you Bill Debuk for joining us today. Um, thank you for having me. on the heels of this news here in Washington, of course.I'm I'm just curious. Uh you mentioned in ...

Sergey, if this was the early internet era, what year would crypto be in. I would say 9798 something like that. Really.Yeah. Yeah. Let me explain.Today I sit down with leader in the crypto space and co-founder of Chain Link, Sergey Nazerov. And it's really just the beginning. who was in the room where it happened as President Trump signed the Genius Bill.This afternoon, we take a giant step to cement American dominance of global finance and crypto technology as we sign the landmark Genius Act into law. So, ...

President Trump today signing the landmark Genius Act into law. It's the first major piece of crypto legislation in US history. The bill boosting crypto further into the mainstream now offering a regulatory framework for a so-called stable coin in the economy.This is the Trump administration prepares to potentially sign another groundbreaking executive order paving the way for 401k retirement saving plans to invest in private assets. We're going to explain all this. So, what could these changes mean for you ...

Crypto Industry & Political Landscape - Crypto industry views the passage of stablecoin bill as a significant win, particularly celebrating by President Trump [1][6] - Crypto companies like Coinbase, Ripple, and Andre Horowitz have donated approximately $200 million to a bipartisan PAC in the 2024 election [2] - The bipartisan PAC currently possesses a $141 million war chest intended for use in the midterms [3] - Bipartisan momentum is crucial for the passage of a broader digital asset market structure bill, which is highly desired by crypto companies [3][4] Legislative Challenges & Future Outlook - While the stablecoin bill is nearing enactment, the broader digital asset market structure bill faces challenges in the Senate, requiring collaboration between the Senate and the House, and Democratic support [4][5] - Optimistic projections suggest potential progress on the broader bill near the end of September, with possible passage in October, but the process is subject to unforeseen obstacles [5] - A key issue during legislative negotiations was preventing the Federal Reserve from creating a central bank digital currency [9] US Competitiveness & Dollar Dominance - Concerns about the US falling behind in the crypto space have been used to advocate for a clear regulatory structure, emphasizing job creation and attracting companies to the US [10] - The narrative of strengthening the dollar and preventing the loss of its reserve currency status played a role in gaining President Trump's support for crypto legislation [7]

Joining us now is Dave Ripley. He's the co-CEO of Kraken. Dave, what's the significance of this day for you.Welcome. Yeah. Well, thanks for having me.So, uh, you know, this is a historic day, long time coming. It's been a long journey. Uh, you know, I first started, uh, coming out to DC many years ago, talking about the regulatory environment, talking about a day like today where we would actually have some clarity. Uh, and it's frankly a testament to individuals like Senator Hagerty who I first met many ye ...

Joining us now, New York University School of Law adjunct professor Max Raskin. Max has taught a cost a course on digital currencies at NYU for nearly a decade. He's been looking into Bitcoin for longer than that as he was on another network with me back in 2012 talking about Bitcoin.The only the only person who was talking about Bitcoin then. And you say now this is really liberation day. Why.Yeah, this is a really important uh this is a really important moment and Trump has really demonstrated that he's t ...

Crypto Regulation & Legislation - The House of Representatives is moving forward with voting on three crypto regulation bills: the Genius Act (stablecoin legislation), the Clarity Act (market structure bill), and an anti-CBDC bill [1][4][6] - The Genius Act, having already passed the Senate, is poised to potentially become the first standalone crypto measure signed into law, possibly by the end of the week [4][17][20][21] - The Clarity Act aims to establish clear rules for when a digital asset is considered a security (overseen by the SEC) versus a commodity (overseen by the CFTC) [4][27] - The industry spent tens of millions of dollars to elect pro crypto candidates [5] - There are disagreements among lawmakers regarding the best approach to passing crypto legislation, with some advocating for merging bills [5][17][19] Market & Company Developments - Bitcoin traded below $119,000, Ether gained nearly 5.5% to trade above $3,400, and XRP gained 9% to cross $3 [2] - Coinbase is launching a new "everything app" that combines wallet functions with social media messaging and support for various apps, aiming to diversify revenue streams [9] Potential Impacts of Regulation - Passage of stablecoin legislation is expected to encourage significant investment in the crypto space within the US, fostering innovation and protecting consumers [21][22][23] - Clear regulations are anticipated to attract both human and financial capital to the US for blockchain and Web3 technology development [31]