Macro Musings with David Beckworth Austin Campbell on the Rise and Regulation of Dollar Backed Stablecoins
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Dec 1, 2025 Austin Campbell, digital assets advisor and founder of Zero Knowledge Group, dives into the evolving world of stablecoins. He discusses the implications of the GENIUS Act and the ongoing debate over interest payments on stablecoins. Austin also explores the future of Tether and regulatory models like skinny master accounts. He highlights how dollar-backed stablecoins influence currency choices globally and assesses the macro effects on financial systems, emphasizing the need for clearer regulations and innovative business models in low-rate environments.
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From Stable Value Funds To BUSD Collapse
- Austin described moving from JP Morgan stable value products to running the reserves and risk for BUSD at Paxos.
- He built a large stablecoin that grew above $20B and then returned to zero without losing customers' money.
Genius Act Is Only The Starting Point
- Genius Act sets statutory frameworks but implementation requires detailed Fed, OCC and state rules that will take about a year.
- Poor coordination risks regulatory arbitrage and inconsistent outcomes across regulators.
Don't Overreach On Yield Restrictions
- Regulators should read the law: issuers are restricted from paying yield solely for holding stablecoins, not third parties.
- Banks lobbying to ban yield risk reopening debates like Reg Q and could backfire politically.