#BigTechStablecoin Big tech companies entering the stablecoin market have raised concerns among lawmakers and regulators. The GENIUS Act, a stablecoin legislation, has gained bipartisan support and is expected to be submitted for the President's signature soon. One of the key debates surrounding BigTech firms is their potential expansion into payments territory, giving them the power to "print their own money" or use consumer data to corner markets.

*Key Concerns:*

- *Data Privacy*: Lawmakers worry about BigTech firms leveraging consumer data outside the activity for which it was given.

- *Market Power*: BigTech firms could dominate the payments market, stifling competition.

- *Regulatory Framework*: There's ongoing debate about whether stablecoin issuers should be required to obtain a banking license.¹

*Recent Developments:*

- *Hong Kong's Stablecoin Bill*: Allows the issuance of HKD-backed stablecoins, paving the way for further issuance interest in the market.

- *UK's Regulatory Approach*: Recognizes stablecoins as investment instruments, causing legal complexities for payment use cases.

- *EU's Stance*: Classifies e-money tokens as funds, causing regulatory complexity for capital markets.

*New Stablecoin Projects:*

- *USDY (Ondo Finance)*: A tokenized note backed by short-term U.S. Treasury bonds and bank deposits, offering a variable interest rate of around 5.3%.

- *USDM (Mountain Protocol)*: An ERC-20 rebasing token backed by short-term U.S. Treasury bonds, distributing yield to token holders.

- *USDe (Ethena Labs)*: A crypto-native stablecoin solution using stETH as collateral, implementing a delta-neutral strategy to ensure price stability.

- *LISUSD (Lista DAO)*: A decentralized stablecoin allowing for mild price fluctuations, using various crypto assets as collateral.