US lawmakers are debating last‑minute changes to the GENIUS Act after banking groups urged Congress to block third‑party rewards on stablecoins. The push landed as stablecoin supply passed $316 billion, a sign that everyday users already rely on dollar‑pegged tokens for payments and savings. The fight taps into a bigger theme: who controls digital dollars as crypto moves closer to the financial mainstream. Stablecoins like USDC and USDT held steady at $1, but the policy noise hit crypto stocks and DeFi t ...

(Bloomberg) — World Liberty Financial, the crypto venture co-founded by President Donald Trump, is seeking a national trust bank charter for one of its entities that would allow it to expand its USD1 stablecoin operations.Processing ContentWLTC Holdings LLC has filed a de novo application with the Office of the Comptroller of the Currency to establish World Liberty Trust, a proposed national trust bank purpose-built for stablecoin services, World Liberty said in a statement Wednesday in New York. The news w ...

Bloomberg World Liberty Financial, the crypto venture co-founded by President Donald Trump, is seeking a US bank charter for one of its entities that would allow it to expand its USD1 stablecoin operations. WLTC Holdings LLC has filed a de novo application with the Office of the Comptroller of the Currency to establish World Liberty Trust, a proposed national trust bank purpose-built for stablecoin services, World Liberty said in a statement Wednesday in New York. The news was first reported by the Wall ...

Core Viewpoint - Coinbase CEO Brian Armstrong predicts that US banks will eventually lobby for the ability to pay interest on stablecoins, reversing their current stance against it [1][2]. Group 1: Legislative Context - The GENIUS Act, signed in July 2025, prohibits stablecoin issuers from paying interest directly to holders, but allows intermediaries like exchanges to pass yield from Treasury reserves to users [3][4]. - Banking lobbyists are pushing to amend the GENIUS Act to close the loophole that allows non-bank platforms to offer competitive yields of approximately 4% to 5% on liquid cash equivalents [5]. Group 2: Industry Response - Armstrong criticizes the banking lobby's attempts to amend the law as a "red line" for the crypto industry, arguing that it reflects a contradiction in their safety concerns while maintaining a business model that pays depositors below-market rates [6]. - A coalition of 125 crypto companies, including Coinbase, has submitted a letter to the Senate Banking Committee opposing any revisions to the GENIUS Act, asserting that reopening the bill would undermine regulatory certainty [6].

A consortium of nine European banks has announced plans for a shared stablecoin targeting a 2026 launch. Photo by BeInCrypto Something shifted over the past six months. A consortium of nine European banks has announced plans for a shared stablecoin targeting a 2026 launch. JPMorgan expanded JPM Coin to support euro settlements. Société Générale launched EURCV with reserves held at BNY Mellon. All of this happened within a six-month window. These are not pilot programs. They are production deployments b ...

The International Monetary Fund on Thursday released a new global assessment of the stablecoin market, warning that fragmented regulatory frameworks across countries are now creating structural “roadblocks” that threaten financial stability, weaken oversight, and slow the development of cross-border payments. In its report titled “Understanding Stablecoins,” the IMF reviewed how major economies, including the United States, the United Kingdom, the European Union, and Japan, regulate stablecoins and found ...

Japan’s Sony Bank is reportedly readying the launch of a dollar-pegged stablecoin.By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions .Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.The bank is set to issue the coin as soon as fiscal year 2026, with Sony envisioning ...

Core Viewpoint - The Bank of England (BoE) is proposing new rules for stablecoin issuers, allowing them to invest up to 60% of their backing assets in short-term government debt, indicating a shift in its regulatory approach towards the stablecoin sector [1][3]. Group 1: Regulatory Changes - The BoE's new proposal suggests a softening stance compared to a previous 2023 proposal that required issuers to hold all assets with the bank, which would not earn interest [2]. - The BoE plans to oversee only stablecoins that are likely to be widely used for payments and has introduced a temporary regime for issuers previously regulated by the Financial Conduct Authority (FCA), allowing them to invest up to 95% of their backing assets initially [4]. - The BoE is considering offering central bank liquidity facilities to systemic stablecoin issuers during market stress, providing a safety net if they cannot sell their reserve assets in the private market [6]. Group 2: Industry Impact - The crypto industry has sharply criticized the BoE's earlier proposal, which mandated that 100% of assets be held with the bank, reflecting concerns over the impact of such regulations on the sector [2]. - The BoE has retained unpopular plans to introduce temporary caps on the value of stablecoins that individuals and businesses can hold, although larger businesses may be exempted if necessary [5]. - Stablecoins used for non-systemic purposes, such as trading crypto tokens, will fall outside the BoE's regulatory regime and will instead be overseen by the FCA [6].

Core Viewpoint - Coinbase Global has urged the US Treasury Department to ensure that the upcoming rules for the GENIUS Act align with Congress's original intent to avoid excessive regulation that could hinder innovation in the crypto space [1][3][9] Regulatory Concerns - The exchange warned that excessive regulation could stifle innovation and undermine US leadership in the cryptocurrency sector [3] - Coinbase's Chief Policy Officer emphasized the need for regulations to adhere closely to the bill's text, ensuring US-issued stablecoins maintain their competitiveness as a global payment and settlement instrument [4] Scope of Regulation - Coinbase called for a narrow interpretation of the GENIUS Act, specifically excluding non-financial software developers, blockchain validators, and open-source protocols from regulatory oversight [4][9] - The company clarified that the prohibition on interest payments under the GENIUS Act applies only to stablecoin issuers, not to exchanges or intermediaries offering loyalty or rewards programs [5] Tax and Accounting Proposals - Coinbase proposed that payment stablecoins be recognized as cash equivalents for tax and accounting purposes, arguing that their design is similar to fiat currency [6] - The exchange urged the Treasury and the Internal Revenue Service to adopt a pragmatic approach to taxation for payment stablecoins to reduce the regulatory burden [6] Industry Impact - The GENIUS Act, enacted in July 2025, establishes the first federal framework for regulating stablecoins, requiring tokens to be fully backed by US dollars or equivalent liquid assets and mandating annual audits for large issuers [7] - Coinbase's comments reflect growing industry concerns regarding how the law's implementation could impact the balance between innovation, investor protection, and global competitiveness in the stablecoin sector [7][9] Position on Stablecoins - Coinbase rejected claims that the growth of stablecoins could deplete deposits from US banks, arguing instead that stablecoins reinforce the dollar's global dominance [8]

Core Insights - The Bank of Korea (BOK) has issued a warning regarding the risks associated with won-pegged stablecoins, emphasizing the need for regulatory safeguards to maintain monetary stability [1][3][4] - The BOK's report highlights systemic vulnerabilities posed by the rapid expansion of stablecoin activities, including potential depegging events and illicit capital flows [1][5] Regulatory Concerns - The BOK advocates that only regulated financial institutions, preferably banks, should issue stablecoins to prevent undermining monetary control and capital management [3][6] - The central bank's analysis indicates that reserve asset volatility could significantly impact the domestic financial market, with improper collateral management leading to depegging risks [3][4] Risks to Monetary Stability - The report identifies risks from privately issued stablecoins that may not maintain a one-to-one reserve ratio with the Korean won, warning of potential loss of peg confidence [4][5] - The BOK calls for robust reserve audits, issuance caps, and central oversight to mitigate liquidity shocks and protect monetary policy effectiveness [5][6] Legislative Developments - South Korea's ruling Democratic Party has proposed the Digital Asset Basic Act, allowing local firms to issue stablecoins with a minimum capital requirement of 500 million won ($367,000) [6] - The proposed legislation aims to enhance transparency and competition in the digital asset market, although the BOK remains opposed to non-bank entities issuing won-pegged stablecoins [6][7]