Overview
- The U.S. Treasury remains in the consultation phase of GENIUS Act rulemaking and has received competing submissions from Coinbase, Circle, state regulators, and major banking trade groups.
- Fed Governor Stephen Miran said stablecoin growth could lift demand for Treasuries, push the neutral interest rate lower, and potentially necessitate lower policy rates, with staff projecting $1 trillion to $3 trillion in uptake by decade’s end.
- Coinbase urged a narrow reading that excludes software developers, validators, and open-source protocols from oversight and said third‑party rewards should not be treated as prohibited interest, while also seeking cash‑equivalent accounting for payment stablecoins.
- Banking groups pressed Treasury to close perceived loopholes so platforms cannot pay yield to stablecoin holders through rewards programs, arguing the interest ban should effectively extend beyond issuers.
- Circle called for uniform prudential standards for bank and nonbank issuers, full‑reserve verification, clear cross‑border criteria, and cash‑equivalent treatment, as CSBS sought joint federal‑state guidance on tokenized deposits and warned against overly broad federal interpretations.