Jose Fernandez Da Ponte, Senior Vice President of Digital Currency at PayPal, said in a panel at Consensus 2025 in Toronto that banks are key pillars to keep Stablecoin growing, and clear regulations.
His comments come as a lawmaker close to passing the Stubcoin Act, which allows him to transform the market and open it up to banks, and when the US is trying to update rules on digital assets.
For example, the US Senate is preparing a massive vote on the genius law, the Stubcoin bill, on Monday, May 19th. This came when John Tune, the Senate majority leader, set up a “coagulation vote” to advance the law after repeated obstacles.
Fernandez da Ponte pays attention to the need for clear regulations in the crypto industry
Fernandez Da Ponte argues that while Stablecoins may seem counterintuitive if they grow outside of a circle of origin of code, banks in this market are essential as the infrastructure from custody to the provision of Fiat Rails is important. Both the fabric and the connection must work.
Another well-known name focused on conversation topics is Anthony Soohoo, chairman and CEO of Moneygram, a cross-border remittance service, claimed this was a major breakthrough. Based on his argument, “I can always hesitate. Can I trust this?
When clear regulations are in place, both executives said they hope for integration once a wave of new publishers is flooded with the industry. Fernandez da Ponte said there wouldn’t be more than just two stub coins, or 300.
The Stablecoin market is currently run primarily by Tether and Circle’s Stablecoins, leading almost 90% of its $200 billion asset class. But with a $900 million supply, PYUSD is far behind.
Fernandez should not be the basis for measuring success, Fernandez said. He said the focus should be on speed, active wallets and total number of transactions, emphasizing that this will encourage practical use.
In the meantime, customers are looking for a stable, stupid thing backed by dollars that can be used for international payments. Moneygram has nearly 1 million cash access locations in over 200 countries, and helps make it accessible, says Soohoo.
Sources say developed countries were slow to embrace stable ones. Stablecoins can streamline cross-border spending and corporate financial activities with appropriate and clear regulations, said Fernandez Da Ponte.
The US Senate anticipates a vote against the Genius Act to rebuild the stablecoin market
The genius act has returned to the spotlight as lawmakers make final attempts to bring legislation to the Senate floor a few weeks after discussion.
Senate sources say bipartisan amendments are under consideration, with suggested changes that include stricter regulations on technology companies handling financial assets, increased consumer protection and increased public surveillance Numbers – Included Elon Musk. The amendment is intended to enhance bankruptcy protection and prevent misuse of FDIC insurance.
These changes could also make the bill more attractive to a wide range of Republicans. The pending vote is a Litmus test of whether the Senate is ready to advance digital assets laws that include strict accountability without thwarting innovation.
The genius act led by Senator Bill Hagerty imposes a regulatory structure for token issuers.r wiThe focus is on stablecoins awarded in US dollars. The bill requires issuers to meet strict licensing, asset support and transparency conditions.
Under the proposal, Stablecoin issuers with assets of more than $10 billion will be subject to federal reserve oversight, with the state regulating small issuers.
US Dollar or Treasury securities must back all stablecoins completely. The legislation aims to strengthen the dollar’s position in global markets and increase broader financial access in the digital age.
Discover more from Earlybirds Invest
Subscribe to get the latest posts sent to your email.
