Less Noise, More Signal Michael Howell on GENIUS Act: Stablecoin adoption could mean slower credit growth
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Jul 24, 2025 
Michael Howell, CEO of Cross Border Capital and liquidity trends expert, shares insights on the current liquidity cycle. He discusses how a weakening dollar is reshaping global markets and the unconventional dynamics of stablecoins. Howell delves into the Genius Act's potential to alter the banking landscape, stressing how stablecoin adoption might slow credit growth. With over 40 years in finance, he emphasizes the importance of asset valuation strategies in an inflationary environment. His analysis suggests a shift towards real assets for investors.
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Liquidity Cycle Drives Markets
- Financial markets currently revolve around refinancing existing debt rather than new investments.
- The global liquidity cycle follows the average maturity of debt, roughly five to six years.
Three Pillars of Global Liquidity
- Three pillars support global liquidity: US Federal Reserve actions, China's liquidity injections, and stable collateral markets.
- These factors have expanded liquidity despite rising bond yields, aided by low bond market volatility.
Debt-Liquidity Ratio Warning
- The debt-liquidity ratio is moving toward a level where market tensions increase.
- This signals a shift from a benign liquidity environment to potential financial stress.
