GENIUS Act Vs. Fed Policy On Stablecoins Raises Questions For Ethereum

Key Points

1. The GENIUS Act promotes permissionless, open blockchain use for stablecoins, while the Fed's Policy Statement 9(13) deems such practices unsafe and unsound for banks.

2. Ethereum dominates the stablecoin market with 49-54% of the $271.1 billion global supply, processing over $20 billion in daily transfers.

3. President Trump urged the Fed to rescind Policy Statement 9(13), citing regulatory prejudice against permissionless blockchains as harmful to U.S. competitiveness.

4. Circle announced Arc, an EVM-compatible blockchain for regulated stablecoin finance, while Stripe is developing Tempo, highlighting industry moves amid regulatory uncertainty.

5. The divergence between Congressional intent (GENIUS Act) and Fed guidance creates compliance challenges for banks issuing stablecoins on public networks like Ethereum.