The US just passed the GENIUS Act, opening the door for big banks to get into stablecoins. This is a huge deal for crypto, and places like Bank of America, Fiserv, and Morgan Stanley are already looking into it. But is it all smooth sailing? Not quite.
Should Companies Make Their Own Stablecoins?
While the GENIUS Act makes using stablecoins easier, it’s not a magic bullet. Companies like Walmart and Amazon are thinking about their own stablecoins, which could change retail and finance forever. But the Act doesn’t solve all the problems. There are tons of technical and strategic hurdles to jump.
One big question: should a company create its own stablecoin, or use an existing one? It depends on what you want to do with it. A retailer might make one to get customers more involved, while others might use them for international payments. As one expert put it, “Is this about getting more customers, or just having a widely used stablecoin?”
New Rules, New Costs
For companies that aren’t banks, using stablecoins means dealing with new rules. The GENIUS Act requires following anti-money laundering (AML) and know-your-customer (KYC) rules, which adds costs and paperwork.
Banks also face new challenges. They need to figure out how stablecoins affect their money reserves. Holding stablecoins might mean needing more capital, adding to their regulatory burden. One expert noted, “The GENIUS Act is great, but banks still need to consider the risks of holding these assets.”
Tech Choices and Uncertain Futures
Another big decision is which blockchain to use. Ethereum and Solana are popular, but banks might prefer private blockchains for better control. They want clear rules and oversight, which public blockchains sometimes lack.
Even with the GENIUS Act, the future is unclear. Regulators still need to release detailed rules on compliance and risk management. We’re waiting on guidance from the Office of the Comptroller of the Currency (OCC) and the Treasury Department before things really get going. So, while the potential is huge, the path ahead for Wall Street and stablecoins is definitely bumpy.