The US is shifting its stance on stablecoins, a type of digital token pegged to the dollar. Vice President JD Vance endorsed the GENIUS Act, which would regulate these assets. The SEC’s new approach allows banks and brokers to enter the market. Stablecoins aim to reach half the world’s underserved population through crypto.
Vice President Vance called stablecoins a “force multiplier” for US economic power, aligning with the administration’s goal of promoting financial innovation. He stated that stablecoins do not threaten the integrity of the US dollar but rather augment its value.
The GENIUS Act would establish a comprehensive regulatory framework for stablecoin issuers, paving the way for their integration into the US financial system. This could unlock trillions of dollars in global demand for American debt and solidify the US as a dominant reserve currency.
Tether’s CEO, Paolo Ardoino, highlighted that commodity trading firms will drive stablecoin adoption over the next five years. Traditional banks are entering the market with their own digital dollars, but Ardoino warned they’ll focus on existing customers due to high fees.
The Securities and Exchange Commission (SEC) has begun dismantling its enforcement-first framework, allowing greater institutional participation in crypto. This shift is expected to bring more stablecoins into the US financial system, reaching underserved populations worldwide.
As the US continues to navigate its stance on stablecoins, key provisions such as yield sharing with users and government official participation remain debated. However, proponents like Kraken CEO Dave Ripley believe that bringing financial institutions into the digital asset ecosystem will be crucial for widespread adoption.
Source: https://www.cnbc.com/2025/05/30/bitcoin-2025-stablecoin.html