Dollar-backed stablecoins are coming soon

HalfDime · June 17, 2025 8:14PM

The GENIUS Act, formally titled the "Guiding and Establishing National Innovation for U.S. Stablecoins Act," is a landmark piece of U.S. legislation focused on regulating stablecoins—a type of cryptocurrency pegged to assets like the U.S. dollar. Passed by the Senate in June 2025, it represents the first major federal effort to set comprehensive standards for the issuance, management, and oversight of stablecoins in the United States.: The act establishes federal rules for stablecoin issuers, requiring full reserve backing, regular audits, and compliance with anti-money laundering and anti-terrorism regulations.; Only regulated entities, such as banks, fintech firms, and large retailers, can issue stablecoins, provided they meet strict reserve and reporting standards.; The bill mandates that issuers hold sufficient reserves to cover all issued stablecoins and gives coin holders priority for repayment in the event of bankruptcy.; The Treasury Department receives expanded authority to oversee the stablecoin market, with the goal of safeguarding the financial system and consumer interests.
..............................................
Since this will be pegged to the dollar I am not sure why they will use this. Maybe it is possible they peg it to other assets, depending on what the House passes.

Pegging it to gold would be a better stablecoin.

MsMorrisine · June 17, 2025 8:35PM

"stablecoin" <> "pegged to assets like the U.S. dollar"

RedneckHB · June 18, 2025 5:11AM

@HalfDime
Since this will be pegged to the dollar I am not sure why they will use this.

Because the TechBros and administration can enrich themselves.

dcarr · June 18, 2025 5:17AM

@RedneckHB said:

@HalfDime
Since this will be pegged to the dollar I am not sure why they will use this.

Because the TechBros and administration can enrich themselves.

.

I don't particularly care for it.
But it is exactly the type of thing that big banks want to do (and have done) "to enrich themselves" by issuing currency.

.

RedneckHB · June 18, 2025 5:56AM

@dcarr said:

@RedneckHB said:

@HalfDime
Since this will be pegged to the dollar I am not sure why they will use this.

Because the TechBros and administration can enrich themselves.

.

I don't particularly care for it.
But it is exactly the type of thing that big banks want to do (and have done) "to enrich themselves" by issuing currency.

.

Banks issue currency? You really need to get out of 1880.

And what's with the period 2 lines down after your comments?

psuman08 · June 18, 2025 6:23AM

https://www.msn.com/en-us/money/companies/jpmorgan-chase-files-for-blockchain-related-trademark-triggering-speculation-it-has-stablecoin-plans/ar-AA1GPThA?ocid=BingNewsSerp

MrEureka · June 18, 2025 7:09AM

Does the bill allow the Treasury to issue stablecoins? Seems like that has to be the end game.

Alpha2814 · June 18, 2025 8:08AM

What is this nonsense? "The bill mandates that issuers hold sufficient reserves to cover all issued stablecoins and gives coin holders priority for repayment in the event of bankruptcy."

dcarr · June 18, 2025 8:13AM

@RedneckHB said:

@dcarr said:

@RedneckHB said:

@HalfDime
Since this will be pegged to the dollar I am not sure why they will use this.

Because the TechBros and administration can enrich themselves.

.

I don't particularly care for it.
But it is exactly the type of thing that big banks want to do (and have done) "to enrich themselves" by issuing currency.

.

Banks issue currency? You really need to get out of 1880.

And what's with the period 2 lines down after your comments?

.

The United States Treasury issued these (directly, not associated with a bank) :
Gold Certificates (yellow seal) - last issue was series of 1928;
Silver Certificates (blue seal) - last issue was series 1957-B;
United States Notes (red seal) - last issue was $100 series 1966-A.

Individual national banks issued National Currency (brown seal) - last issue was series 1929.
These were backed by the US Treasury, but issued by national banks.

The Federal Reserve Bank currently issues Federal Reserve Notes (green seal).
This one (center of image, below) says on it "Federal Reserve Bank of Kansas City Missouri".
They also state "Federal Reserve Note". A "note" (not the musical kind), is a debt instrument.
These Federal Reserve Notes are issued through Federal Reserve Banks.
They say "Bank" and "Note" and "Dollars" on them.
That makes them bank notes, also because they are issued by a bank.
It is all quite obvious.
Current Federal Reserve Notes do not have the word "Treasury" on them anywhere.

.

PS:
You apparently need to read what is printed on the money in your wallet.

And what's with the period 2 lines down after your comments?

Nothing. There is literally nothing with it.
But if it makes you feel better, here you go:

..

RedneckHB · June 18, 2025 2:11PM

@dcarr said:

@RedneckHB said:

@dcarr said:

@RedneckHB said:

@HalfDime
Since this will be pegged to the dollar I am not sure why they will use this.

Because the TechBros and administration can enrich themselves.

.

I don't particularly care for it.
But it is exactly the type of thing that big banks want to do (and have done) "to enrich themselves" by issuing currency.

.

Banks issue currency? You really need to get out of 1880.

And what's with the period 2 lines down after your comments?

.

The United States Treasury issued these (directly, not associated with a bank) :
Gold Certificates (yellow seal) - last issue was series of 1928;
Silver Certificates (blue seal) - last issue was series 1957-B;
United States Notes (red seal) - last issue was $100 series 1966-A.

Individual national banks issued National Currency (brown seal) - last issue was series 1929.
These were backed by the US Treasury, but issued by national banks.

The Federal Reserve Bank currently issues Federal Reserve Notes (green seal).
This one (center of image, below) says on it "Federal Reserve Bank of Kansas City Missouri".
They also state "Federal Reserve Note". A "note" (not the musical kind), is a debt instrument.
These Federal Reserve Notes are issued through Federal Reserve Banks.
They say "Bank" and "Note" and "Dollars" on them.
That makes them bank notes, also because they are issued by a bank.
It is all quite obvious.
Current Federal Reserve Notes do not have the word "Treasury" on them anywhere.

.

PS:
You apparently need to read what is printed on the money in your wallet.

And what's with the period 2 lines down after your comments?

Nothing. There is literally nothing with it.
But if it makes you feel better, here you go:

..

So you're stuck in 1929. Another century to go...you can do it!!

I have no feelings but your addition of the period seems inefficient and inconsequential.....oh...I get it now. Haha

MsMorrisine · June 18, 2025 3:22PM

keep some peace you two

were you banned or put into the forum slammer RHB?

blitzdude · June 18, 2025 4:03PM

I seem to have stable coins sprouting out of the ground. Not sure why I need dollar backed ones....although I do love me some US dollars. RGDS! SMPR!!

P.S. anyone know when I can purchase the USMC privy ASEs? Shame they didn't issue them in the Au. THKS!

MsMorrisine · June 18, 2025 4:10PM

https://www.usmint.gov/product-schedule/2025/?prefn1=pastRelease&prefv1=false&start=0&sz=39

blitzdude · June 18, 2025 4:42PM

The Fall? Thanks. I better hold off on my Steeler Super Bowl tickets then. Time will tell. RGDS!

dcarr · June 18, 2025 9:55PM

@RedneckHB said:

@dcarr said:

@RedneckHB said:

@dcarr said:

@RedneckHB said:

@HalfDime
Since this will be pegged to the dollar I am not sure why they will use this.

Because the TechBros and administration can enrich themselves.

.

I don't particularly care for it.
But it is exactly the type of thing that big banks want to do (and have done) "to enrich themselves" by issuing currency.

.

Banks issue currency? You really need to get out of 1880.

And what's with the period 2 lines down after your comments?

.

The United States Treasury issued these (directly, not associated with a bank) :
Gold Certificates (yellow seal) - last issue was series of 1928;
Silver Certificates (blue seal) - last issue was series 1957-B;
United States Notes (red seal) - last issue was $100 series 1966-A.

Individual national banks issued National Currency (brown seal) - last issue was series 1929.
These were backed by the US Treasury, but issued by national banks.

The Federal Reserve Bank currently issues Federal Reserve Notes (green seal).
This one (center of image, below) says on it "Federal Reserve Bank of Kansas City Missouri".
They also state "Federal Reserve Note". A "note" (not the musical kind), is a debt instrument.
These Federal Reserve Notes are issued through Federal Reserve Banks.
They say "Bank" and "Note" and "Dollars" on them.
That makes them bank notes, also because they are issued by a bank.
It is all quite obvious.
Current Federal Reserve Notes do not have the word "Treasury" on them anywhere.

.

PS:
You apparently need to read what is printed on the money in your wallet.

And what's with the period 2 lines down after your comments?

Nothing. There is literally nothing with it.
But if it makes you feel better, here you go:

..

So you're stuck in 1929. Another century to go...you can do it!!

I have no feelings but your addition of the period seems inefficient and inconsequential.....oh...I get it now. Haha

.

The currency in use today is issued by the Federal Reserve BANK, and not by the United States Treasury.
Your "1929" comment is a meaningless attempt at distraction (as usual).

.

pcgsregistrycollector · June 18, 2025 10:20PM

@HalfDime said:

The GENIUS Act, formally titled the "Guiding and Establishing National Innovation for U.S. Stablecoins Act," is a landmark piece of U.S. legislation focused on regulating stablecoins—a type of cryptocurrency pegged to assets like the U.S. dollar. Passed by the Senate in June 2025, it represents the first major federal effort to set comprehensive standards for the issuance, management, and oversight of stablecoins in the United States.

The act establishes federal rules for stablecoin issuers, requiring full reserve backing, regular audits, and compliance with anti-money laundering and anti-terrorism regulations.

Only regulated entities, such as banks, fintech firms, and large retailers, can issue stablecoins, provided they meet strict reserve and reporting standards.

The bill mandates that issuers hold sufficient reserves to cover all issued stablecoins and gives coin holders priority for repayment in the event of bankruptcy.

The Treasury Department receives expanded authority to oversee the stablecoin market, with the goal of safeguarding the financial system and consumer interests.
..............................................
Since this will be pegged to the dollar I am not sure why they will use this. Maybe it is possible they peg it to other assets, depending on what the House passes.

Pegging it to gold would be a better stablecoin.

Doesn't that defeat the point of crypto?

psuman08 · June 19, 2025 6:42AM

@pcgsregistrycollector said:

Doesn't that defeat the point of crypto?

No, pegging crypto to a dollar doesn’t defeat the point—it redefines the use case. Not all crypto is trying to be Bitcoin. Some are just trying to make money move better. From Chat GPT

🧱1. Original Philosophy of Crypto
The Vision:
The original purpose of Bitcoin (and crypto broadly) was:

Decentralization of money

Trustless systems (no need for banks or governments)

Inflation resistance

Self-sovereignty over assets and identity

Alternative to fiat systems that are prone to manipulation or collapse

From that standpoint, pegging a token to a fiat currency like the U.S. dollar reintroduces the very centralization and fiat-dependence that crypto aimed to eliminate. You're back to trusting:

The Federal Reserve (to manage the dollar)

The issuer of the stablecoin (to maintain the peg and not rug-pull)

So in that sense, yes—it contradicts the ideological roots.

💳 2. The Practical Utility of Stablecoins
Despite that contradiction, stablecoins solve real-world problems for individuals, businesses, and developers:

A. Stability for Commerce
Volatile cryptos (BTC, ETH) are hard to use in commerce or payroll.

Stablecoins give you crypto-like speed, settlement, and borderless access without the price volatility.

B. Onboarding New Users
A user in Argentina or Nigeria might want USD exposure without needing a U.S. bank account.

Stablecoins offer access to a stable currency via decentralized or mobile-first apps.

C. Liquidity for DeFi
Most DeFi protocols rely heavily on stablecoin liquidity pools.

Users can borrow, lend, stake, or trade without worrying about wild price swings.

D. Bridge Between TradFi and DeFi
Visa, PayPal, Stripe, and Circle all use stablecoins to settle payments, remittances, and B2B transfers.

They act as a transitional tool toward a more tokenized financial infrastructure.

🔀 3. Different Types of Crypto Serve Different Purposes
Crypto Type Purpose Pegged?
Bitcoin (BTC) Store of value, hedge against fiat ❌ No
Ethereum (ETH) Smart contracts and app execution ❌ No
Stablecoins (USDC, USDT) Price-stable medium of exchange ✅ Yes (to USD)
Utility Tokens Fuel for networks (e.g., Chainlink, Filecoin) ❌ Generally not
CBDCs Government-issued digital fiat ✅ By design

🔍 4. So What's the Point of Stablecoin Crypto?
Stablecoins aren't trying to replace fiat—they’re trying to:

Modernize the way fiat moves

Unbundle banking and payments

Offer programmable, portable, and censorship-resistant dollars

Act as a bridge into crypto ecosystems, especially for those not ready to use volatile assets

In a way, they make crypto usable for the average person or business—which is arguably a necessary compromise on the road to broader adoption.

jmski52 · June 19, 2025 7:01AM

Track and tax or collect fees on every transaction.

Implement social credit scoring.

etc, etc...

HalfDime · June 19, 2025 7:55AM

As of early 2023, there have been at least 23 stablecoins that have lost their peg and failed to recover for months, effectively making them "failed" stablecoins according to a widely cited industry list. While not every failed stablecoin may have reached a price of exactly zero, many—such as Terra’s UST, Iron Titanium (TITAN), and others—have suffered catastrophic collapses where their market value plummeted to near-zero or was completely wiped out.

HalfDime · June 19, 2025 7:58AM

@pcgsregistrycollector said:
Doesn't that defeat the point of crypto?

Yes, compared to how crypto was originally conceived. As I posted above many "stablecoins" have crashed completely.

Wingsrule · June 19, 2025 8:02AM

Maybe those should be called fable-coins now.

Wingsrule · June 19, 2025 8:03AM

I would rather have a USD than something ‘pegged’ to the USD.

RedneckHB · June 19, 2025 12:09PM

@psuman08 said:

@pcgsregistrycollector said:

Doesn't that defeat the point of crypto?

No, pegging crypto to a dollar doesn’t defeat the point—it redefines the use case. Not all crypto is trying to be Bitcoin. Some are just trying to make money move better. From Chat GPT

🧱1. Original Philosophy of Crypto
The Vision:
The original purpose of Bitcoin (and crypto broadly) was:

Decentralization of money

Trustless systems (no need for banks or governments)

Inflation resistance

Self-sovereignty over assets and identity

Alternative to fiat systems that are prone to manipulation or collapse

From that standpoint, pegging a token to a fiat currency like the U.S. dollar reintroduces the very centralization and fiat-dependence that crypto aimed to eliminate. You're back to trusting:

The Federal Reserve (to manage the dollar)

The issuer of the stablecoin (to maintain the peg and not rug-pull)

So in that sense, yes—it contradicts the ideological roots.

💳 2. The Practical Utility of Stablecoins
Despite that contradiction, stablecoins solve real-world problems for individuals, businesses, and developers:

A. Stability for Commerce
Volatile cryptos (BTC, ETH) are hard to use in commerce or payroll.

Stablecoins give you crypto-like speed, settlement, and borderless access without the price volatility.

B. Onboarding New Users
A user in Argentina or Nigeria might want USD exposure without needing a U.S. bank account.

Stablecoins offer access to a stable currency via decentralized or mobile-first apps.

C. Liquidity for DeFi
Most DeFi protocols rely heavily on stablecoin liquidity pools.

Users can borrow, lend, stake, or trade without worrying about wild price swings.

D. Bridge Between TradFi and DeFi
Visa, PayPal, Stripe, and Circle all use stablecoins to settle payments, remittances, and B2B transfers.

They act as a transitional tool toward a more tokenized financial infrastructure.

🔀 3. Different Types of Crypto Serve Different Purposes
Crypto Type Purpose Pegged?
Bitcoin (BTC) Store of value, hedge against fiat ❌ No
Ethereum (ETH) Smart contracts and app execution ❌ No
Stablecoins (USDC, USDT) Price-stable medium of exchange ✅ Yes (to USD)
Utility Tokens Fuel for networks (e.g., Chainlink, Filecoin) ❌ Generally not
CBDCs Government-issued digital fiat ✅ By design

🔍 4. So What's the Point of Stablecoin Crypto?
Stablecoins aren't trying to replace fiat—they’re trying to:

Modernize the way fiat moves

Unbundle banking and payments

Offer programmable, portable, and censorship-resistant dollars

Act as a bridge into crypto ecosystems, especially for those not ready to use volatile assets

In a way, they make crypto usable for the average person or business—which is arguably a necessary compromise on the road to broader adoption.

Its just a solution looking for a problem.

Dollar-backed stablecoins are coming soon

Comments