Welcome to Slate Sundays, a fresh weekly segment on CryptoSlate! Each week, we’ll delve into insightful interviews, expert viewpoints, and thought-leadership pieces that venture beyond the usual news cycle. Join us as we explore the ideas and voices shaping the future of crypto assets.
While 2024 might have been defined by other trends, 2025 is shaping up to be the year of the stablecoin. Digital currencies pegged to the U.S. dollar are taking center stage, gaining acceptance at even the highest levels of government.
March saw the debut of USD1, the World Liberty stablecoin, backed by a DeFi platform where the Trump family holds a controlling interest. Later, at May’s Bitcoin Conference, Vice President JD Vance ignited excitement by affirming the administration’s positive perspective on stablecoins. He emphasized their potential to amplify U.S. economic strength.
The subsequent $20 billion IPO of Circle, a stablecoin issuer, sparked what some are calling “stablecoin summer.” Most recently, the GENIUS Act was signed into law last week, marking a pivotal moment. This landmark legislation creates the first regulatory framework for digital assets in the U.S., potentially transforming the landscape of global finance.
Even Jamie Dimon, despite his well-known skepticism toward Bitcoin and other digital currencies, appears to be participating. While he may express doubts about their appeal publicly, his actions speak louder than words. JPMorgan Chase, the largest bank in the U.S., has been a pioneering force in blockchain, developing its own stablecoin, JPM Coin, since 2019.
What’s behind these global shifts in value transfer? What implications does the GENIUS Act have for the future of crypto, traditional finance (TradFi), and the worldwide economy? We asked experts from the technical, legal, and financial sectors to share their insights and explore the future advancements we might expect.
GENIUS Act: The Short Version
For those unfamiliar, the GENIUS Act stands for “Guiding and Establishing National Innovation for U.S. Stablecoins Act of 2025.” It’s the first comprehensive federal law in the U.S. to specifically govern “payment stablecoins,” meaning digital tokens pegged to fiat currencies.
The Act establishes a long-awaited system for licensing and overseeing stablecoin issuers. It requires full 1:1 reserve backing, implements stringent consumer safeguards, and creates a clear legal foundation for integrating stablecoins into mainstream finance.
The law also restricts non-financial firms (like major tech companies) from issuing stablecoins without explicit authorization. It prescribes substantial penalties for noncompliance, including fines of up to $200,000 daily and potential criminal charges with imprisonment up to five years.
The GENIUS Act is groundbreaking because it provides the first federal legal structure for stablecoin operations in the U.S., ending years of regulatory ambiguity. As the international law firm Winston & Strawn LLP explains:
“The Act pushes stablecoin issuers into a regulatory regime similar to that of banks. For many firms, this means a need to hire compliance officers, invest in risk management systems, and potentially partner with experienced regulated institutions to meet the standards set by Congress.”
Utkarsh Ahuja, founder of Moon Pursuit Capital, a rapidly expanding crypto investment fund, offered his view on the GENIUS Act’s significance:
“The GENIUS Act represents a major leap forward, not just for crypto, but for the United States’ leadership in global finance. For the first time, we have clear rules for stablecoins, which underpin the open and programmable money infrastructure. Uncertainty has held back the industry and driven builders overseas for too long. The GENIUS Act changes that. It provides legal clarity for stablecoins and paves the way for wider crypto adoption.”
Genna Garver, a partner at Troutman Pepper Locke LLP, an international law firm, shared her insights with CryptoSlate readers:
“This marks a transformative moment for institutional financial services. The GENIUS Act authorizes and regulates the tokenization of fiat currency, effectively legitimizing digital US dollar usage.”
Digital Assets: Riding a Wave of Momentum
Guillaume Poncin, CTO of Alchemy, a developer platform processing over $100 billion annually for businesses across various sectors, including Fortune 500 companies and crypto-native firms, shared his perspective:
“The GENIUS Act provides the clarity institutions have been awaiting, legitimizing programmable money that operates at internet speed. This legislation is crucial because it reduces regulatory uncertainty, which has hindered institutional adoption.”
Moreover, the GENIUS Act is not an isolated event. Growing momentum toward digital assets from the current administration is creating a powerful tailwind. Actions like unwinding previous restrictive policies and repealing legislation like SAB 121 (which prevented U.S. banks from providing digital asset custody) are contributing to a favorable environment. Poncin elaborated:
“We saw immediate interest from major banks that had previously been cautious. Now, with GENIUS in place, we believe every major bank will move toward issuing or supporting stablecoins in some form. It unlocks the next era of programmable money that is trusted, regulated, and built for internet-scale speed.”
The GENIUS Act also reinforces the U.S. dollar’s dominance, driving innovation around the USD and solidifying its position as the world’s reserve currency. Chris Perkins, president of CoinFund, a crypto-native investment firm, stated:
“The GENIUS Act will be remembered as a foundational step in mainstreaming crypto as an asset class. By fostering innovation centered on the greenback, GENIUS will ensure the dollar’s status as the global reserve currency for years to come, enhance national security, and expand financial opportunities globally.
Stablecoins offer clear benefits through inexpensive, 24/7 payments. By providing seamless and efficient access to U.S. dollars in developing nations, stablecoins will also serve as a store of value when local monetary policy falters.”
A Surge of Stablecoin Applications
Stablecoins have evolved significantly. They started as a way to store wealth and avoid the volatility of assets like Bitcoin and Ethereum. Now, they are recognized as crucial financial infrastructure in landmark legislation. What are the key use cases enabled by the GENIUS Act, and what can we anticipate in the years ahead? Ahuja noted:
“The GENIUS Act unlocks real innovation, instant remittances, AI-native payments, and global commerce without intermediaries.”
Poncin added:
“The opportunity in stablecoins isn’t in holding them, unless they’re being used in DeFi for yield opportunities. The real opportunity lies in companies issuing their own stablecoins, such as payment processors integrating stablecoins and fintechs launching their own tokens.
We’re seeing fintechs generate meaningful revenue from stablecoin reserves through treasury management. This can potentially be $100M+ annually on $2-3B in deposits. The real value creation comes from how stablecoins are enabling the new financial system.”
Beyond its own stablecoin experiments, JPMorgan recently made headlines by considering allowing clients, particularly institutional ones, to use bitcoin as collateral for loans. Enabled by the GENIUS Act, the bank is developing a program to allow clients to pledge their Bitcoin or Ether holdings to secure cash loans, mirroring practices with stocks or real estate.
While JPMorgan already permits borrowing against crypto ETFs, accepting direct crypto holdings as collateral marks a significant shift for an institution led by a vocal critic of the industry.
The GENIUS Act has wide-ranging implications, with DeFi platforms and tokenized RWAs also taking notice. Orest Gavryliak, chief legal officer at 1inch Labs, a DEX aggregation pioneer, commented:
“Tokenized technology has become a major area of focus for TradFi giants like BlackRock, JPMorgan, and more, as it represents marked improvement on the current setup of financial standards. It is also a major benefit in terms of the accessibility of liquidity. By transcending geographic barriers, the global nature of tokenization, enabled by blockchain technology, allows markets with limited, isolated liquidity to unify and access liquidity from multiple sources—available 24/7, in real time.”
Poncin elaborated:
“Banks will enable customers ‘investor-grade opportunities, like trading in private equities, and get loans against their holdings. Small businesses can finally harness the remote work era to pay overseas workers affordably. We’re about to see a flood of not one, but hundreds of stablecoin ‘killer apps’, all enabling people to exchange and create value in ways unimaginable just months ago.
Tokenized treasuries are growing significantly. Stablecoin issuers, such as Tether, hold substantial U.S. debt positions. We’re seeing increased interest in tokenizing traditionally illiquid assets like private credit and real estate to unlock liquidity. There’s also growing development of infrastructure to make RWAs composable with DeFi protocols.
The real innovation is about making these assets programmable. This enables new financial products like automated lending against tokenized assets or smart contracts that can interact with real-world collateral.”
DeFi Summer on Steroids?
An intriguing aspect of the GENIUS Act is the prohibition against paying interest or yield to stablecoin holders. This could trigger a surge in demand for yield-earning opportunities within DeFi. Perkins observed:
“Under GENIUS, stablecoins do not pay interest to end users, and without interest, stablecoins are depreciating assets. So, holders will seek yield. And that’s where DeFi comes in. If the Treasury Department’s projections are correct and trillions of stablecoins come into the system, expect DeFi summer on steroids as users seek to maximize yield by engaging across a variety of yield strategies. Users will be drawn to yield-bearing vaults, and they will commission AI agents to optimize their returns.
With the U.S. back in the lead, countries around the world will need to accelerate and optimize stablecoin policies of their own. The $7.5 trillion per day FX market stands to benefit. Watch this space.”
Will Beeson, founder of MultiLiquid and former co-lead of Standard Chartered’s Tokenization platform, commented:
“The outright ban on stablecoin yield marks a critical inflection point. Capital is already shifting. Ethereum is outperforming Bitcoin as traders seek returns via Ethereum-native protocols and tokenized funds.
The stablecoin market is entering a phase where only institutions that can put capital to work efficiently will survive. But there’s a bottleneck: stablecoins move 24/7, Treasurys don’t. Liquidity infrastructure that bridges this gap is now mission-critical.”
Gavryliak added:
“Regulatory clarity, like the GENIUS Act, means companies and institutions can now look to leverage stablecoins for fast, cost-efficient cross-border payments, treasury optimization, and real-time settlement, bypassing TradFi banking rails and unlocking operational efficiencies. It’s a positive step forward for DeFi.
It also provides security for institutions and other TradFi operators, who can now put their full weight behind the sector. Those previously just dipping their toes in can now dive headfirst with the clear guardrails.”
Political Roadblocks?
Given the increasing partisan divide surrounding digital assets, and figures like Elizabeth Warren maintaining their anti-crypto stance, is there a risk of the GENIUS Act being overturned if a new administration takes power? Moreover, with the Trump family’s apparent financial interests in digital assets, does this present a conflict of interest? Poncin believes it’s too late to reverse course:
“The momentum in crypto adoption transcends political divisions. We work with institutions across the spectrum that recognize blockchain’s potential. The repeal of SAB 121 had bipartisan elements, and there are crypto advocates across party lines. Major banks, asset managers, and payment companies are building on blockchain because it offers superior technology for settlement and programmable money.
Moreover, the cryptocurrency industry has demonstrated resilience in the face of various challenges over the years. What matters is that institutions are building real utility on blockchain. These use cases exist because they solve real-world problems, such as settlement speed, operational costs, and 24/7 availability. That’s what drives lasting adoption.”
Garver also expressed optimism that GENIUS will lead to lasting change, stating:
“During the legislative process, there were numerous attempts to debate and offer amendments to the bill to address certain conflicts of interest, but those amendments were not adopted as part of the final GENIUS Act. Now that we have final legislation authorizing permitted payment stablecoins, digital asset adoption likely will depend more on the use cases.
Not unlike ATM adoption of the last generation, at some point, it’s just too convenient and beneficial not to get on board. I don’t see potential users sitting on the sidelines as a sign of protest. I think the ship will quickly sail, and crypto will become too integrated into the fiber of our economy, the global economy, and the financial services industry.”
With rising global debt, increased liquidity, geopolitical instability, and declining interest rates, favorable regulation of digital assets in the U.S. could create unstoppable momentum. Ahuja affirmed:
This is, frankly, as constructive a macro setup as you can ask for, short of resolving event-driven risks like tariffs or Middle East escalation. But from a pure market-structure and liquidity standpoint, the conditions are primed.
We’re entering a rare window where fundamentals, liquidity, and macro dynamics are all pointing in the same direction; and that’s precisely when the most compelling upside gets unlocked.”