Source: Cato Institute
by Norbert Michel
“Fans of cryptocurrency have long seen stablecoins, a type of crypto that promises stable value, as a gateway to expanding crypto’s use and familiarity. The GENIUS Act, the stablecoin legislation currently moving through the Senate, might be the best chance to deliver a favorable legal framework soon, and the chances are better because the Trump administration has made crypto a priority. … Most stablecoins try to achieve a stable value by using cash and short-term securities (often U.S. Treasuries) as collateral. In these cases, anyone holding a stablecoin is supposed to be able to convert back to dollars seamlessly, without losing value. So, verifying that a stablecoin issuer really has the ‘reserves’ it advertises is a key regulatory function. It really should be that simple, but it seems the GENIUS Act negotiations are headed in the wrong direction.” (06/04/25)
https://www.cato.org/commentary/genius-act-good-start-congress-could-make-it-smarter