FICC Focus Stablecoin Regulation Update With Nathan Dean: Macro Matters
Jul 17, 2025
Nathan Dean, a Senior Policy Analyst at Bloomberg Intelligence, dives into the intricate world of stablecoin regulation. He highlights the significance of the GENIUS Act and its implications for the financial system. Dean discusses the evolving landscape for stablecoins, the competition between private issuers and banks, and the anticipated changes in Treasury demand. He also emphasizes the need for proactive regulator engagement and explores how stablecoins could reshape global finance, integrating with existing payment systems and unlocking blockchain's transformative potential.
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GENIUS Act Regulatory Framework
- The GENIUS Act mandates 100% high quality liquid assets backing for stablecoins.
- It introduces a regulatory framework assigning bank issuers to the Federal Reserve and non-bank issuers over $10 billion to the OCC, with smaller non-banks regulated by states.
Stablecoins Fill Regulatory Gap
- Stablecoins sit in a regulatory gap, not fitting as securities, commodities, or bank deposits fully.
- The GENIUS Act aims to provide clarity and allow stablecoin issuers to operate without enforcement during rulemaking.
Stablecoins and Treasury Demand
- Demand for Treasury securities may increase but primarily reallocates from bank deposits moving into stablecoins.
- Bank-issued stablecoins could hold Federal Reserve reserves as assets, making them similar to deposits.