What Next | Daily News and Analysis TBD | Crypto's Big Win
10 snips
May 25, 2025 
Hilary Allen, a Professor at American University’s Washington College of Law, dives into the intertwining worlds of politics and cryptocurrency. She discusses the influential financial contributions of the crypto industry during elections and the implications of the bipartisan GENIUS Act. Concerns about regulation and the potential risks posed by stablecoins are examined, especially in light of historical financial crises. Allen critiques the unexpected support for crypto among Democrats, highlighting the challenges of achieving financial inclusion while safeguarding economic stability.
AI Snips
Chapters
Books
Transcript
Episode notes
GENIUS Act's Regulatory Risks
- The GENIUS Act creates a parallel, lighter-touch regulatory framework for stablecoins, not holding them to full bank regulation standards.
- Stablecoins behave like money market mutual funds, which have experienced runs causing bailouts in the past.
Institutional Risks of Stablecoins
- The legislation legitimizes stablecoins for institutional players, increasing the risk of financial system interconnection.
- Bigger involvement by institutions makes bailouts or losses to pension funds more likely if crypto fails.
Tech Giants Could Issue Stablecoins
- The GENIUS Act would allow tech giants like Meta or Amazon to issue stablecoins with regulatory approval.
- This could enable platforms to integrate payments and data, keeping users within their ecosystems extensively.
