Big tech companies are increasingly interested in stablecoins, which could give them significant power in the financial sector. This has raised concerns among lawmakers and regulators. Here's what's happening ¹:

- *Regulatory Scrutiny*: The GENIUS Act has cleared several procedural hurdles with bipartisan support, aiming to regulate stablecoin issuance and prevent Big Tech firms from "printing their own money" or using consumer data to corner markets.

- *Potential Risks*: Regulators worry that Big Tech companies could leverage consumer data outside the intended activity, creating an uneven playing field. To mitigate this, legislators are ensuring that consumer data can't be used beyond its intended purpose.

- *Global Regulatory Landscape*: Different regions are approaching stablecoin regulation uniquely. For example, Hong Kong's Legislative Council passed a Stablecoin Bill allowing issuance of HKD-backed stablecoins, while the UK recognizes stablecoins as investment instruments, contrasting with the EU's stance on e-money tokens.

- *New Stablecoin Projects*: Innovative projects like USDY, USDM, and USDe are emerging, offering features like rebasing mechanisms, tokenized notes backed by short-term US Treasury bonds, and synthetic dollar systems. These projects prioritize transparency, security and regulatory compliance.

Some notable stablecoin projects include ²:

- *USDY (Ondo Finance)*: A tokenized note backed by short-term US Treasury bonds and bank deposits, offering variable interest rates around 5.3% and full transparency through monthly reports.

- *USDM (Mountain Protocol)*: An ERC-20 rebasing token backed by short-term US Treasury bonds, providing monthly proof of reserves and targeting non-US investors.

- *USDe (Ethena Labs)*: A crypto-native synthetic dollar using stETH as collateral and maintained through short futures positions, offering censorship resistance and revenue generation through staking.$BTC $XRP $SOL #BigTechStablecoin