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Circle Pushes Treasury for Clear Rules on US Dollar Stablecoins

Michaela — Fri, 07 Nov 2025 09:54:01 +0000

Stablecoin issuer Circle has expressed support for the full implementation of the GENIUS framework, calling for a unified national approach to regulate both domestic and foreign payment stablecoin issuers. In comments submitted to the U.S. Treasury Department, the company emphasized the importance of clear, consistent oversight to protect consumers and strengthen confidence in the digital payments ecosystem.

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Circle urged the U.S. Treasury to implement the GENIUS framework with clear, consistent rules for all stablecoin issuers, domestic, foreign, bank, and nonbank alike.
The company emphasized that stablecoins should be fully backed by cash and high-quality liquid assets, with strict enforcement and penalties for noncompliance.
Circle framed the GENIUS Act as a chance to build a unified, transparent, and innovation-friendly federal digital payments system that reinforces U.S. leadership in digital finance.

Circle submitted comments to the Treasury on November 4 in response to its Advance Notice of Proposed Rulemaking on implementing the GENIUS Act. “We welcome the opportunity to help Treasury operationalize a statute that does more than set guardrails for payment stablecoins—it lays groundwork for a federal digital payments framework in the United States,” Circle wrote in a blog post discussing their recommendations.

The company reaffirmed several key principles championed by supporters of the GENIUS Act, including the requirement that stablecoins be fully backed by cash and high-quality liquid assets. At the same time, Circle urged regulators to establish clear enforcement standards and consistent penalties for noncompliance, emphasizing that banks, nonbanks, and both domestic and foreign issuers should operate under uniform rules to ensure consumer protection and prevent regulatory loopholes.

“GENIUS implementation is an opportunity to unify standards, raise transparency, and de-risk core payment functions without constraining innovation,” Circle wrote. “By setting clear definitions, risk-sensitive prudential requirements, predictable enforcement, and a reciprocal path for compliant foreign issuers, Treasury can promote a safer, more competitive market that channels demand toward transparent, fully reserved, compliance-anchored products—reinforcing U.S. leadership in digital finance,” the firm added.

Circle’s recommendations were submitted as part of the second round of public consultations on the GENIUS Act, following its signing into law by President Donald Trump in July.

As regulators continue shaping the GENIUS Act’s framework, Circle’s response reflects a broader industry push for clarity, accountability, and uniform oversight in the fast-evolving stablecoin sector. The company’s stance spotlights the growing convergence between traditional financial safeguards and digital asset innovation, as policymakers seek to balance innovation with systemic stability.

Whether these measures ultimately strengthen consumer trust and foster responsible growth in the U.S. stablecoin market will depend on how effectively the forthcoming rules are enforced and how aligned private issuers remain with national financial priorities.

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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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GENIUS Act Could End Banks’ Low-Interest Game, Says Multicoin Exec

Michaela — Mon, 06 Oct 2025 13:13:32 +0000

Tushar Jain, co-founder and managing partner of crypto investment firm Multicoin Capital, has said the GENIUS Act could shift retail deposits from traditional banks to higher-yield stablecoins, creating direct competition between banks and stablecoin issuers once the legislation takes full effect.

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The GENIUS Act could shift retail deposits from traditional banks to higher-yield stablecoins, intensifying competition between banks, tech giants, and stablecoin issuers.
Traditional banks may face pressure to raise interest rates, impacting profits, while regulators worldwide, including in Canada and Hong Kong, are considering stablecoin frameworks to remain competitive.
Stablecoins are expected to reshape global finance by enabling faster, 24/7 payments and cross-border transactions, potentially redefining consumer expectations and the future structure of banking.

“The Genius Bill is the beginning of the end for banks’ ability to rip off their retail depositors with minimal interest,” Jain wrote in an X post on Saturday. Jain noted that after the GENIUS Act is fully implemented, major tech companies like Meta, Google, and Apple could begin competing with traditional banks for retail deposits, leveraging stablecoins to provide higher yields, faster settlement, and around-the-clock payment services. “These stablecoins will be embedded into the most widely distributed apps and operating systems in the world,” Jain wrote.

The Genius Bill is the beginning of the end for banks' ability to rip off their retail depositors with minimal interest. Post Genius Bill I expect the big tech giants with mega distribution (Meta, Google, Apple, etc) to start competing with banks for retail deposits.

The tech… https://t.co/SCtHrgNeLI
— Tushar Jain (@tushar_jain) October 4, 2025

Jain added that traditional banks may face pressure to raise interest rates for depositors, which could significantly impact their profits. He also noted that the banking lobby sought to safeguard earnings through the GENIUS Act’s restrictions on paying interest to stablecoin holders.

Following the U.S. rollout of the GENIUS Act, other countries are exploring comparable regulations to stay competitive. In late September, Hong Kong-based fintech firm AnchorX launched AxCNH, a stablecoin pegged to the offshore Chinese Yuan (CNH). The token aims to simplify cross-border payments and settlements, targeting offshore Chinese businesses and nations involved in the Belt and Road Initiative (BRI).

In Canada, Ron Morrow, head of payments at the Bank of Canada, urged regulators to establish a clear stablecoin policy, warning that without action, the country could fall behind others in modernizing payment systems. He emphasized that stablecoins must offer safety and stability on par with traditional bank deposits to be considered money, calling on both federal and provincial authorities to implement a comprehensive framework.

The GENIUS Act’s ripple effects are poised to reshape the global financial landscape, prompting banks, regulators, and fintech innovators to reassess how money moves and earns. As stablecoins gain traction, they could redefine consumer expectations around accessibility, speed, and returns, forcing traditional institutions to adapt or risk losing relevance.

Meanwhile, international developments signal that stablecoin policy is no longer just a domestic matter. The coming years may see digital assets increasingly integrated into everyday finance, with implications for global payment networks, cross-border commerce, and the very structure of banking as we know it.

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Bank of Canada Urges Stablecoin Rules Before the Country Gets Left Behind

Michaela — Fri, 19 Sep 2025 09:38:03 +0000

The head of payments of the Bank of Canada, Ron Morrow, has urged regulators to establish a clear framework for stablecoins, warning that without action, Canada risks falling behind other nations advancing with similar policies to modernize their payment systems.

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Bank of Canada’s Ron Morrow urged regulators to establish a stablecoin framework, warning Canada risks lagging behind other nations moving forward with policies.
He spotlighted the need for faster, cheaper cross-border payments, noting high remittance costs in Canada compared to the U.S. and U.K.
Morrow’s remarks followed the U.S. GENIUS Act, which set the stage for wider stablecoin adoption, amplifying pressure on Canada to modernize its regulatory stance.

“More recently, there is growing interest in using stablecoins for cross-border payments to make transactions faster and cheaper. Globally, stablecoin use has been rising in recent years and now accounts for around US$1 trillion in annual transactions,” Morrow said in a speech on Thursday at the Chartered Professional Accountants conference.

Morrow urged federal and provincial regulators to develop a comprehensive policy framework for stablecoins. He emphasized that for these digital assets to be treated as money, they must offer the same level of safety and stability as funds held in a bank account.

Additionally, Morrow noted that governments around the world are moving ahead with regulations for stablecoins and other cryptocurrencies, aiming to balance consumer protection with innovation. He warned that Canada risks falling behind, as many jurisdictions have already introduced or are close to finalizing rules for crypto assets.

The head of payments spotlighted what he described as a “practical Canadian example,” pointing to immigrants who settle in Canada and seek to send money to their families abroad. He noted that the cost of cross-border transfers remains considerably higher in Canada compared with markets such as the United States and the United Kingdom.

“There is a pressing need for faster, cheaper, more transparent and more accessible cross-border payments services. But these services also need to be safe and secure,” Morrow stated.

Morrow’s remarks come at a time of growing momentum for stablecoins, following President Donald Trump’s signing of the GENIUS Act into law. The legislation is seen as a major step toward mainstream adoption of stablecoins, further intensifying global discussions on regulatory frameworks.

In September 2024, the Bank of Canada revealed it was reducing its focus on developing a retail central bank digital currency (CBDC). The decision followed a public consultation in which 42% of respondents expressed a favorable view of a potential CBDC, while 20% said they disliked or strongly opposed the concept.

Looking ahead, Morrow stressed that Canada’s approach to digital assets will need to balance innovation with trust, ensuring that any future system not only keeps pace with global standards but also delivers clear benefits to households and businesses.

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Citi Warns High-Yield Stablecoins Could Shake Crypto Markets, SHIB Impact

Michaela — Tue, 26 Aug 2025 10:28:07 +0000

Summary: Why is Ronit Ghose warning about high-yield stablecoins?

Citi’s Ronit Ghose warned that offering interest on stablecoins could cause large withdrawals from banks, similar to the surge of money market funds in the 1980s. This shift could raise banks’ funding costs, leading to higher borrowing expenses for households and businesses. Experts caution that widespread movement toward high-yield stablecoins may disrupt the traditional banking sector and credit markets.

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Ronit Ghose, Global Head of Citi’s Future of Finance division, has cautioned that offering interest on stablecoin holdings could prompt significant bank withdrawals, echoing the 1980s money market fund surge, and potentially raising funding costs and credit rates.

According to a report by the Financial Times, Ghose drew parallels between potential outflows from interest-paying stablecoins and the surge in money market funds during the late 1970s and early 1980s. Adding to the concern, Sean Viergutz, a banking and capital markets advisory lead at PwC, warned that a migration of consumer funds toward higher-yielding stablecoins could pose significant risks for the traditional banking sector.

Ghose warned that banks might encounter increased funding costs if they turn to wholesale markets or raise deposit rates, a scenario that could drive up borrowing expenses for both households and businesses.

Ghose’s warnings about higher funding costs for banks add context to the ongoing debate over stablecoin regulations, emphasizing the potential strain on traditional banking if interest-bearing crypto products gain traction.

The GENIUS Act bars stablecoin issuers from offering interest to holders but does not restrict crypto exchanges or related businesses, prompting concerns from the banking sector.

US banking groups, led by the Bank Policy Institute, have urged regulators to close what they see as a loophole that could allow indirect interest payments, warning it might trigger $6.6 trillion in deposit outflows and disrupt credit for businesses and households.

The crypto industry has pushed back, arguing that tightening the rules would favor traditional banks and hinder innovation, even as the US government continues to support dollar-pegged stablecoin adoption.

Stablecoins Shift Could Ripple Through SHIB Market

For SHIB holders, these developments could have indirect but meaningful implications for the market. As investors pursue higher yields from stablecoins, they may rebalance their crypto portfolios, potentially reducing exposure to tokens like SHIB and affecting its trading volume and overall demand.

Over time, such shifts could influence price dynamics and liquidity in the SHIB market, particularly if a significant portion of the crypto community reallocates capital toward interest-bearing stablecoins.

This scenario spotlights how broader regulatory changes and market trends in the crypto sector can ripple across altcoins, impacting investor behavior, market confidence, and even adoption rates, even when a token is not directly involved in stablecoin products.

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South Korea Fast-Tracks Tokenized Securities and Stablecoin Laws

Michaela — Tue, 05 Aug 2025 12:43:42 +0000

Summary: What is South Korea doing to prepare for the future of digital finance?

South Korea is introducing new laws to support tokenized securities and regulate stablecoins. These measures include recognizing blockchain for record-keeping and allowing financial institutions to issue digital assets. Banks are also forming dedicated teams and infrastructure to support this shift.

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South Korea has advanced a landmark tokenized securities law while competing legislative efforts to regulate stablecoins are gaining momentum, signaling a significant shift in the nation’s approach to digital finance.

The Token Securities Act, backed by bipartisan support in South Korea, is set to introduce sweeping updates to the Electronic Securities Act and the Capital Market Act. The legislation will formally recognize blockchain as a valid method for record-keeping and provide the legal foundation for financial institutions to issue and manage tokenized assets, including stocks, bonds, and private equity.

LATEST: South Korea passes major tokenized securities law – banks can now tokenize bonds, stocks & private equity on blockchain.

Asia dominating RWA pic.twitter.com/YV4p3phPJQ
— Real World Asset Watchlist (@RWAwatchlist_) August 4, 2025

South Korea’s efforts to accelerate crypto-friendly legislation have gained new momentum following the passage of the GENIUS Act in the United States. The GENIUS Act, which stands for Guiding and Establishing National Innovation for U.S. Stablecoins Act, establishes a clear regulatory framework for payment stablecoins by assigning oversight responsibilities to key federal agencies such as the OCC, Federal Reserve, and FDIC.

Furthermore, as legislative discussions around stablecoin regulation gain momentum, South Korea’s financial sector is moving swiftly to prepare for the anticipated changes. Local reports indicate that major banks are proactively laying the groundwork by creating specialized internal teams and forming strategic consortia aimed at supporting the future issuance and management of stablecoins.

Woori Bank, one of South Korea’s leading commercial banks, reportedly launched a dedicated Digital Asset Team to oversee its expanding portfolio of digital finance initiatives. The specialized unit is tasked with developing and managing a range of services, including stablecoins and electronic wallets, as part of the bank’s broader strategy to position itself at the forefront of the evolving digital asset landscape.

In addition to major commercial banks, South Korea’s internet-only and regional banks are also taking steps to prepare for upcoming stablecoin regulations. K Bank has reportedly formed a dedicated digital asset task force to explore opportunities in the sector, while Busan Bank continues to expand its blockchain capabilities through a specialized team within its platform business division. This unit oversees the Citizen Platform, the bank’s local currency initiative, and serves as the core organization managing its blockchain-related operations.

As South Korea accelerates its digital finance overhaul, the convergence of regulatory clarity and institutional readiness suggests a rapidly approaching shift in how financial assets are issued, managed, and exchanged. With momentum building across both the public and private sectors, the country appears poised to emerge as a key player in the global race toward blockchain-powered finance.

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genius act – The Shib Daily

Circle Pushes Treasury for Clear Rules on US Dollar Stablecoins

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GENIUS Act Could End Banks’ Low-Interest Game, Says Multicoin Exec

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Bank of Canada Urges Stablecoin Rules Before the Country Gets Left Behind

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Citi Warns High-Yield Stablecoins Could Shake Crypto Markets, SHIB Impact

Stablecoins Shift Could Ripple Through SHIB Market

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South Korea Fast-Tracks Tokenized Securities and Stablecoin Laws

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