All articles tagged with #stablecoins
Card-network stocks, including Mastercard, Visa and American Express, fell after a Sunday research report revived fears that stablecoin-based technology could bypass traditional payment networks, with Mastercard slipping about 0.4% in early trading as concerns about AI-driven disruption resurfaced.
A global survey of 4,658 adults across 15 countries finds stablecoins, pegged to the dollar and totaling about $300 billion in market cap, are shifting from a trading tool to everyday money used for payments, payroll, and savings. Among crypto users, 54% held stablecoins in the past year and 56% plan to acquire more; freelancers earn roughly 35% of their income in stablecoins, and about three-quarters say it improves cross-border work. Holders allocate about one-third of their savings to crypto/stablecoins, with higher uptake in lower-income regions like Africa. About 52% have bought something specifically because a merchant accepts stablecoins, highlighting growing merchant acceptance. Regulators are moving to clarify rules, potentially accelerating adoption."
New York prosecutors say the GENIUS Act, the bipartisan stablecoin bill, falls short on forcing issuers to return stolen funds and could let stablecoin firms like Tether and Circle profit from fraud; they cite the ability to freeze funds and earn interest on reserves, claiming about $1 billion in 2024 profits for each firm and millions currently held frozen, while critics warn it lacks consumer protections.
President Trump’s pick to lead the Fed, Kevin Warsh, has crypto markets weighing a bitcoin–dollar dynamic: he’s praised bitcoin as “gold for anyone under 40” while also signaling a hawkish policy stance and maintaining ties to stablecoins and early bitcoin ETFs. The nomination sparked a price dip in bitcoin, but Warsh’s comments suggest crypto could inform policy and fit into broader discussions about stablecoins and CBDCs, all set against a backdrop of rising debt and questions about monetary dominance. It’s early to discern his exact policy path until he resumes duties at the Fed.
Amid political turmoil and hyperinflation in Venezuela, residents rushed to convert bolívares into USDT to preserve savings, send remittances, and pay for goods. The surge in demand pushed USDT prices above $1 on some exchanges, highlighting liquidity gaps and risks, while analysts note stablecoins can act as a real-time safety rail in unstable economies—and potentially increase capital outflows that pressure the local currency.
Bitcoin hovered around $95,700 after a daily decline as the Senate Banking Committee postponed a hearing on the Digital Asset Market Clarity Act following Coinbase’s withdrawal of support; Coinbase CEO Brian Armstrong called the bill worse than the status quo, citing issues such as a ban on tokenized stocks and limits on stablecoin rewards. Ethereum and XRP also slipped. Despite the delay, crypto markets have been resilient and are awaiting clearer regulatory direction, though an immediate breakthrough remains unlikely.
Senate Banking Chair Tim Scott postponed a markup of a sweeping cryptocurrency bill after Coinbase opposed the latest version, underscoring a key impasse over whether exchanges can offer yield-bearing stablecoin rewards. Lawmakers vow to keep negotiating a compromise palatable to both banks and crypto firms, aiming to provide regulatory clarity on token securities and commodities; leaders like Mark Warner and Cynthia Lummis say there is a path forward, though negotiations are expected to stretch into February.
Bank of America CEO Brian Moynihan warned that a Treasury Department study suggests up to $6 trillion of U.S. bank deposits could migrate into stablecoins if interest-bearing stablecoins aren’t restricted, potentially shrinking banks’ deposit bases and raising wholesale funding costs. The report comes as lawmakers rush to finalize a crypto bill that would ban interest on stablecoins unless tied to activities like staking or liquidity provision, amid lobbying from banks and crypto firms and concerns about financial surveillance.
Senate Banking Chair Tim Scott postponed a scheduled markup of landmark cryptocurrency legislation after pushback from Coinbase and other crypto firms, signaling uncertain bipartisan support. Coinbase CEO Brian Armstrong argued the draft would worsen the status quo and could undermine CFTC authority while raising concerns about stablecoin rewards, prompting questions about amendments that banks want. With lawmakers from both parties negotiating changes, it’s unclear when Scott will reconvene the markup, though Senator Cynthia Lummis pressed for continuing work on the bill.
Circle’s 2026 Internet Financial System report argues that regulated, full-reserve digital dollars and open internet-native money protocols will become the backbone of a global, programmable economy, with USDC and Circle at the center as public blockchains evolve into trusted platforms for trillions in value, enabling broader digital-asset markets, global payments, humanitarian finance, and on-chain infrastructure under converging regulatory foundations.
U.S. senators unveiled a draft bill to create a formal crypto regulatory framework that would classify tokens as securities or commodities, grant the CFTC authority over spot markets, set rules on stablecoins and disclosures, and address banking industry concerns—though passage is uncertain as lawmakers debate provisions.
Coinbase is watching a major crypto bill advance toward Senate review, with the central issue being whether platforms can continue offering rewards on stablecoin holdings. Coinbase views those rewards as a core part of its business and may resist strict limits, while some lawmakers want rules that could restrict rewards to banks. Stablecoin rewards underpin a meaningful revenue stream tied to USDC reserves, with about 3.5% yields on certain holdings and Bloomberg data projecting roughly $1.3 billion in stablecoin-related revenue for 2025. Wall Street currently signals a Moderate Buy on COIN with an average target of $361.63, implying about 50% upside.
The article discusses how stablecoins have the potential to significantly impact global payments systems, not through technological innovation but through their influence on financial practices and markets.
The article discusses stablecoins, a type of digital currency, highlighting their significance in the financial technology sector and the importance of reliable journalism from the Financial Times for understanding their impact.
In 2025, crypto dealmaking hit a record $8.6 billion driven by US government support and industry consolidation, with expectations of continued growth into 2026 as new regulations and stablecoin demand shape the market.