#BigTechStablecoin Big tech firms entering the stablecoin market are sparking debates among lawmakers and regulators. The GENIUS Act, a stablecoin legislation, has gained bipartisan support in the US, with discussions focusing on anti-money laundering protections, restrictions on foreign issuers, and treatment of payment stablecoin issuers in insolvency proceedings.

*Key Concerns:*

- *Data Privacy:* Ensuring consumer data isn't leveraged outside its intended activity

- *Market Power:* Preventing BigTech firms from cornering markets by "printing their own money"

- *Regulatory Frameworks:* Determining whether stablecoin issuers should be required to obtain banking licenses

*Global Developments:*

- *Hong Kong:* Passed a Stablecoin Bill allowing issuance of HKD-backed stablecoins

- *UK:* Recognizing stablecoins as investment instruments, with ongoing regulatory processes

- *EU:* Adopting a simplified authorization process for crypto-asset service providers

- *US:* Aiming to submit stablecoin legislation for the President's signature before summer recess

*New Stablecoin Projects:*

- *USDY (Ondo Finance):* Tokenized note backed by short-term US Treasury bonds and bank deposits, offering variable interest rates around 5.3%

- *USDM (Mountain Protocol):* ERC-20 rebasing token backed by US Treasury bonds, with monthly proof of reserves

- *USDe (Ethena Labs):* Crypto-native synthetic dollar using stETH as collateral, with delta-neutral strategy for price stability

¹ ²

#BigTechStableCoin #StablecoinRegulation #FinancialInnovation