”It’s been the summer of stablecoins. The recently-passed GENIUS Act has created the first federal regulatory system for stablecoins, major companies are exploring launching their own stablecoins, and USDC issuer Circle recently went public to much fanfare. So, does the stablecoin summer have staying power? Former Acting Comptroller of the Currency Brian Brooks believes so, arguing that the sense of safety around stablecoins the GENIUS Act provides will unleash a stablecoin “gold rush”. We then explore what stablecoin proliferation could mean for stablecoin issuers (the commercial opportunity should grow as asset tokenization expands), traditional payment rails (the risks are generally overstated), Treasuries (it depends), and bank deposits (likely limited impact for now). And we dig into the potential implications for financial stability, with UC Berkeley’s Barry Eichengreen quite concerned that stablecoin proliferation could look like the problematic Free Banking Era, but Brooks adamantly disagreeing with this comparison.” Læs hele analysen her
Morten W. Langer
