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US Senate Passes Bill to Regulate Stablecoins, Boosting Corporate Adoption Prospects

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The U.S. Senate has approved the GENIUS Act, a bill establishing a regulatory framework for stablecoins, marking a significant milestone for the growing segment of cryptocurrency designed to maintain stable value, typically pegged 1:1 to the U.S. dollar. The bill’s passage is seen as a key step toward broader adoption of stablecoins by corporations worldwide.

Stablecoins facilitate crypto traders’ movement of funds between tokens, but clearer regulations have been lacking. The bill now moves to the Republican-controlled House of Representatives, where its version must pass before heading to former President Donald Trump’s desk for signing.

If enacted, the law will require stablecoins to be fully backed by liquid assets—such as U.S. dollars and short-term Treasury bills—and mandate issuers to publicly disclose monthly reserve compositions. Analysts believe this regulatory clarity could unlock wider use by companies across multiple sectors.

Several major firms are already engaged or exploring stablecoin initiatives globally:

  • Major U.S. Banks:
    Bank of America CEO Brian Moynihan has indicated possible stablecoin launches. Morgan Stanley seeks to work with regulators on crypto-related transaction roles. Both remain cautious, focusing on pilot programs or partnerships.

  • Societe Generale (France):
    Plans to issue a publicly tradable, dollar-backed stablecoin via its digital asset subsidiary.

  • Retail Giants Walmart and Amazon:
    Reports suggest recent exploration of stablecoin issuance, though Walmart denies current plans and Amazon has not commented.

  • Banco Santander (Spain):
    Considering digital asset expansion including early-stage stablecoin projects.

  • Crypto and Fintech Firms:
    World Liberty Financial launched a dollar-pegged stablecoin USD1 this year. PayPal released a U.S. dollar stablecoin in August 2023. Circle Internet’s USDC and Paxos’ stablecoins are among the largest. Tether’s USDT remains the largest by market cap, followed by MakerDAO’s DAI.

The GENIUS Act’s passage signals increasing regulatory acceptance of stablecoins, potentially accelerating their integration into mainstream corporate finance and payment systems.

Societe Generale Becomes First Major Bank to Launch Dollar-Pegged Stablecoin

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France’s Societe Generale announced plans to launch “USD CoinVertible,” a dollar-backed stablecoin through its digital asset subsidiary SG-FORGE, marking the first time a major global bank enters the dollar-pegged stablecoin market. The new cryptocurrency will be issued on both the Ethereum and Solana blockchains, with public trading set to commence in July.

Stablecoins, which are cryptocurrencies pegged to traditional currencies such as the U.S. dollar, allow for the movement of significant funds across blockchain networks without relying on conventional banking systems. The sector has rapidly expanded, led by crypto company Tether, which has issued $155 billion worth of its dollar-backed tokens.

SG-FORGE previously launched a euro-backed stablecoin in 2023, but adoption has been limited, with only €41.8 million ($47.6 million) in circulation. Unlike unregulated counterparts, SocGen’s stablecoins will be classified as e-money tokens and regulated under the EU’s Markets in Crypto-Assets Regulation (MiCA), adopted in 2023. Tether, by contrast, does not hold a MiCA license to operate within the EU.

Jean-Marc Stenger, CEO of SG-FORGE, emphasized strong market demand for a regulated dollar-based stablecoin, noting significant interest from corporate clients, financial institutions, and crypto exchanges seeking reliable and compliant offerings. “At the moment, there are no other banking-related players in that space,” Stenger said.

Stablecoin issuers typically hold customer deposits in dollars and invest them into yield-bearing assets such as government bonds for profit. Bank of New York Mellon (BNY) will act as custodian for SG-FORGE’s reserves, which will initially be held in cash before being allocated to other investments.

SG-FORGE’s USD CoinVertible will serve multiple functions including crypto trading, cross-border payments, foreign exchange transactions, and collateral management. While specific exchange listings have not yet been disclosed, the company stated that over 15 crypto exchanges and brokers are onboarding as clients.

In the United States, stablecoin regulation is also gaining momentum, with Congress preparing to adopt new legislation. Bank of America has signaled potential interest in launching its own stablecoin, and other major banks are considering joint initiatives.

Tether remains the world’s largest stablecoin issuer and recently disclosed it has become the seventh largest buyer of U.S. government debt in 2024 through its extensive Treasury holdings. Meanwhile, the second-largest stablecoin issuer, Circle, went public on the U.S. stock market on June 5, with its shares surging 48% shortly after listing.

Despite the rapid growth, regulators continue to caution that stablecoins could pose risks to financial stability by linking traditional finance with the more volatile cryptocurrency markets.

Gemini Files Confidentially for U.S. IPO as Crypto Markets Regain Strength

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Gemini, the cryptocurrency exchange founded by billionaire twins Tyler and Cameron Winklevoss, has confidentially filed for an initial public offering (IPO) in the United States, as digital asset firms capitalize on renewed strength in crypto markets. This move comes amid a surge of successful listings, particularly in high-risk sectors like crypto and fintech, signaling a revival of capital market activity.

The IPO wave reflects pent-up demand after years of regulatory uncertainty and market volatility. Earlier this week, stablecoin issuer Circle made a strong debut on the New York Stock Exchange, encouraging other crypto firms to consider public offerings. “Pre-IPO crypto companies would be crazy not to move ahead with listings after seeing how Circle traded,” said Matt Kennedy, senior strategist at Renaissance Capital.

Gemini has not yet disclosed the size or price range of its offering. The exchange currently offers trading and storage for over 70 cryptocurrencies and aims to join a growing list of crypto-native companies seeking mainstream investment. Kat Liu, vice president at IPOX, noted that Gemini’s filing adds to the sector’s momentum and reflects the growing readiness of digital asset firms to engage with public capital markets.

The timing for Gemini’s IPO coincides with a dramatic rise in the global cryptocurrency market, now valued at approximately $3.3 trillion, with Bitcoin trading above $100,000, according to CoinMarketCap. The recent approval of U.S. spot Bitcoin ETFs has drawn billions of dollars from institutional investors eager for crypto exposure.

Michael Ashley Schulman, CIO at Running Point Capital Advisors, said, “A successful listing would confirm that the crypto thaw is real.” He added that if the trend continues, the IPO calendar could rapidly fill up with fintech, AI, and other tech-related offerings.

This renewed optimism marks a stark turnaround for the crypto industry, which was rocked by the collapse of FTX in 2022 and years of global regulatory scrutiny. However, recent political developments have also helped boost sentiment, with U.S. presidential candidate Donald Trump declaring his support for the sector and pledging to be a “crypto president.”

In May, Coinbase made history by becoming the first U.S. crypto-focused company to join the S&P 500, solidifying crypto’s growing presence in traditional financial markets. Gemini’s IPO filing further underscores the sector’s accelerating financial maturity and its efforts to integrate more deeply into global capital markets.