Regulatory Fault Lines Are Reordering Stablecoins — GENIUS Act and MiCA Point Toward a Two-Tier Future
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US prosecutors say GENIUS Act bolsters stablecoin firms while leaving fraud victims exposed
Senior New York prosecutors argue the GENIUS Act grants stablecoin issuers greater legitimacy while omitting explicit rules that would require return of stolen funds to victims. Their letter singles out Tether and Circle for practices they say impede recovery efforts and create perverse incentives to retain and profit from frozen assets.
Standard Chartered Flags Stablecoins as a Growing Threat to Bank Deposit Bases
Standard Chartered’s analysis warns that expanding dollar-pegged stablecoins could erode material shares of bank deposit bases and compress net interest-margin income, particularly for regional U.S. banks. The paper also highlights how central-bank policy choices — as signalled recently by South Korea’s authorities — and where issuers park reserves will determine whether stablecoins produce domestic deposit outflows or mainly cross-border capital-flow effects.
UK Lords Open Inquiry as Bank of England and FCA Tighten Rules Around Stablecoins
The House of Lords Financial Services Regulation Committee has opened a formal inquiry into proposed stablecoin rules as the Bank of England and FCA advance a coordinated regulatory timetable that could reshape payment rails and bank deposits. Parallel moves in Japan and recent bank analyses underscore deposit-flight and reserve-placement risks, signalling the need for cross-border coordination and stronger supervisory tools.


