All articles tagged with #stablecoins
World Liberty Trust Company won a conditional OCC charter to operate a crypto bank that will issue the USD1 stablecoin; under the 2025 Genius Act, USD1 deposits cannot earn interest and must be invested in high-quality securities like US Treasuries, with critics arguing its main appeal is to curry favor with the Trump administration while regulators say career staff oversaw the approval.
The U.S. Treasury is moving quickly to implement the GENIUS Act’s nationwide framework for payment stablecoins, inviting public input on proposed rules as regulators turn the law into a functioning regulatory system. Treasury officials say clearer standards will boost regulatory certainty for stablecoin issuers and financial institutions while helping maintain the U.S. dollar’s status as the world’s reserve currency and keeping America at the forefront of crypto adoption.
The Treasury granted a conditional, preliminary bank charter to World Liberty Trust Company, a Trump-linked venture, enabling it to issue dollar-tied stablecoins. The move cements a crypto-friendly regulatory path for the company, which is co-founded by Donald Trump and has reportedly earned the former president nearly $800 million in 2025. The charter includes safeguards to keep the Trump family business separate from banking operations, while critics like Sen. Elizabeth Warren argue it represents potential self-dealing.
Crypto interests have poured money into Washington to push the Clarity Act, a sweeping digital-assets regulation bill, but banks are mounting a fierce lobbying push to add amendments—especially around stablecoin rewards—that they say could drain deposits from banks. The clash could force Senate Republicans to choose between crypto allies and hometown lenders, with a potential bipartisan deal needed to move the bill after the August recess.
Circle reported Q2 revenue of $701 million (up 7%) vs a $712 million consensus, with net income of $48 million vs. an expected $43 million. The miss comes as crypto markets weaken and USDC circulation slows, with about $73.4 billion USDC outstanding as of June 30—up from a year ago but below March peak. Morgan Stanley downgraded Circle to underweight amid headwinds, and concerns persist about Coinbase revenue sharing and competition, even as Circle expands with new tokens and IBM patent acquisitions. Circle shares have fallen roughly 62% over the past year.
The CLARITY Act remains stalled in the Senate, delaying a federal framework for digital assets. The Motley Fool argues Bitcoin is the only crypto worth buying now due to its status as a digital commodity, ETF accessibility, and potential as a hedge, while stablecoins and other tokens face regulatory uncertainty.
Trump is pushing the Senate to pass the Clarity Act, a broad crypto-policy bill that would assign CFTC oversight to crypto spot markets, define a "mature blockchain" to guide whether tokens are treated as securities, regulate stablecoin yields, and add consumer protections. With an August recess narrowing the window, analysts see a possible vote before the break but warn passage isn’t guaranteed and a lame-duck path remains possible amid bipartisan hesitations and ongoing regulatory concerns.
A rumored Stripe-Advent bid to acquire PayPal could accelerate the move of money onto blockchain rails, with Polygon Labs' Aishwary Gupta predicting most money will be on-chain in coming years. The report also notes the Open USD (OUSD) stablecoin and PYUSD-related developments, while analysts offer mixed views on the deal’s impact beyond boosting stablecoin ambitions. PayPal shares rose on the rumor, and observers say Stripe could advance its goals without owning PayPal.
Federal regulators released a 60-day comment proposal that would require stablecoin issuers to perform bank-style customer identification for direct customers under CIP, while allowing ordinary users to move stablecoins on secondary markets without issuer data collection. Tied to the GENIUS Act, the plan aims to fit stablecoins into banking regulations without mandating universal end-user IDs, noting that tracking every holder would be nearly impossible and suggesting future whitelisting as a possibility. The proposal is non-final and could face pushback from traditional banks, but issuers would still retain powers to freeze or blacklist tokens.
The Federal Reserve Board, jointly with four other agencies, issued a proposal requiring certain payment stablecoin issuers to implement an effective customer identification program, comparable to CIP requirements for banks and credit unions, with comments due 60 days after Federal Register publication.
The four largest US banks—JPMorgan Chase, Citigroup, Wells Fargo, and Bank of America—are collaborating through Clearing House to launch a tokenized deposit network that would issue digital versions of customer deposits, likely within traditional banking regulation and possibly on private/permissioned networks. The move is framed as a response to the rise of dollar‑backed stablecoins and ongoing crypto regulation discussions (Clarity Act), with JPMorgan already operating private platforms (Kinexys) and JPM Coin on Coinbase’s Base. The exact technical structure remains to be seen and will depend on final regulatory language.
Mastercard is expanding its network to support on-chain settlement using regulated stablecoins (such as USDC, PYUSD, USDG, and USDP), enabling real-time, 24/7 cross-border payments. The push involves multiple partners—ARQ, Circle, Paxos, Ripple, Nuvei, Cross River, Lead Bank, and others—to integrate digital asset rails with traditional payments infrastructure, improving liquidity and settlement speed across global flows.
As the Digital Asset Market Clarity Act moves to the Senate, Ethereum and Solana could benefit from provisions around stablecoins and blockchain adoption by financial institutions, while XRP stands to gain from safer on-chain integration for banks. With a White House target of July 4 for passage, the act could trigger a summer rally if these tokens receive regulatory clarity and institutional support.
Coinbase and Robinhood shares fell after the Senate Banking Committee advanced the CLARITY Act, with traders taking profits after the initial optimism. Coinbase CEO Brian Armstrong remains critical of the bill, flagging restrictions on stablecoin yields, limits on tokenized equity, and DeFi surveillance provisions. The legislation still faces a tough path to 60 votes in the full Senate amid political hurdles. Analysts here rate COIN a Moderate Buy with a $247 12‑month target, implying about 16% upside as investors weigh regulatory risk.
A high-stakes fight over a landmark crypto-regulation bill is reshaping Senate alliances: Wall Street banks back a Tillis–Alsobrooks compromise to curb crypto-yield rewards and stem potential deposits flight, while Elizabeth Warren and progressive Democrats push for tougher stablecoin restrictions. With most Republicans reluctant to concede, the banking lobby is pushing for more changes as the bill advances through the Senate Banking Committee, signaling a rare convergence between Warren and banks against some GOP allies and crypto interests.