The world’s largest asset manager, BlackRock, has notably been on a Bitcoin selling spree throughout this week, triggering a wave of sell-offs in the process. These sales have occurred due to the outflows that the asset manager has witnessed from its BTC ETF. 

BlackRock Dumps Around $500 Million In Bitcoin

Arkham data shows that BlackRock has offloaded around $500 million in Bitcoin this week, with transfers to Coinbase, a move that indicates a move to sell these coins. The asset manager has sold these coins following outflows from its iShares Bitcoin ETF, which was the norm throughout this week.

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SoSo Value data shows that BlackRock’s Bitcoin ETF first recorded a daily net outflow of $68.72 million on August 18. The fund then further saw net outflows of $220 million, $127.49 million, and $198.81 million on August 20, 21, and 22, respectively. Notably, the iShares Bitcoin ETF has accounted for most of the outflows, with the BTC ETFs as a group currently on a six-day streak of consecutive net outflows. 

These Bitcoin ETFs have seen total net outflows of almost $1.2 billion since August 15. Meanwhile, in just this week alone, over $1.1 billion has left these funds, sparking a bearish sentiment for the BTC price. Given BlackRock’s position as a major player in the Bitcoin ecosystem, outflows from its fund had sparked a wave of sell-offs. This led to a massive decline for the flagship crypto earlier in the week. 

The Bitcoin price had dropped to as low as $112,000 this week as BlackRock and other BTC investors took profit on their investments. This followed the flagship crypto’s rally to a new all-time high (ATH) of $124,000 last week. However, BTC has now sharply rebounded on the back of Jerome Powell’s Jackson Hole speech, in which he indicated that a rate cut might happen in September. 

An End To The BTC ETF Outflow Streak

Notably, Powell’s speech was enough to spark fresh inflows into the Bitcoin ETFs on August 22, with BlackRock the only fund manager that recorded a net outflow on the day. Further data from SoSo Value shows that Cathie Wood’s Ark Invest recorded a daily inflow of $65.47 million, the most among the issuers on the day. 

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Meanwhile, Fidelity, Van Eck, Franklin Templeton, Bitwise, and Grayscale recorded inflows of $50.88 million, $26.41 million, $13.51 million, $12.70 million, and $6.42 million, respectively. However, BlackRock recorded an outflow of $198.81 million, which led to a daily net outflow of $23.15 million for the funds as a group. With the Bitcoin price rebounding, these funds, including BlackRock’s IBIT, could return to witnessing significant daily inflows from next week.

At the time of writing, the Bitcoin price is trading at around $115,900, up over 2% in the last 24 hours, according to data from CoinMarketCap.

Featured image from Pixabay, chart from Tradingview.com

Wall Street increased its Bitcoin exposure in the second quarter, adding positions as well as spot Bitcoin exchange sales funds (ETF) Also, new filings with the Securities and Exchange Commission say that US stocks are closely tied to cryptocurrency prices. (seconds).

Brevan Howard almost doubles BlackRock’s position on iShares Bitcoin Trust (go) According to the securities application, in the second quarter. The macro-focused hedge fund held 37.9 million shares at the end of June, at the end of March, with approximately 21.5 million shares in March.

The shares are worth more than $2.6 billion based on IBit’s closing price on June 28th, and Brevan Howard became one of IBIT’s biggest institutional owners, increasing its position to $3.3 billion in Ibit and Fidelity’s wise origin Bitcoin Trust. (FBTC). The banking giant also owned an iShares Ethereum Trust worth $489 million (Eta)according to the submission.

Ownership of Goldman’s ETF is not a direct bet by the trading desk at the price of Bitcoin. Rather, it is more likely to represent the position held by Goldman Sachs Asset Management on behalf of the client.

However, Brevan Howard, best known for his macro trading, has been active in the Crypto space for a long time, running a dedicated digital asset division called BH Digital. The unit manages billions of assets and invests in blockchain infrastructure, decentralized finance and related technologies.

Harvard, Wells Fargo, etc.

Other major IBIT investors include Harvard University, which reported $1.9 billion in ETF shares, and Abu Dhabi’s Mubadara Investment Company, which continues to hold $681 million.

When it comes to US banks, Wells Fargo almost quadrupled its IBIT holdings to $160 million from $26 million in the last quarter, maintaining a $200,000 stake in the grayscale Bitcoin fund. (GBTC).

Canter Fitzgerald also increased its holdings to more than $250 million, increasing its shares in crypto-related stocks, including its strategy. (MSTR)Coinbase (coin) And Robin Hood (Food)especially.

Trading company Jane Street has revealed that it holds $1.46 billion in stake in IBIT. (TSLA) $1.4 billion. We increased our MSTR stake while reducing our FBTC holdings.

Spotting Bitcoin ETFs like IBIT, which launched in January, allows investors to get in touch with the price of Bitcoin without directly holding cryptocurrency. Its structure provides traditional institutions with the means to participate in the crypto market through familiar securities and custody arrangements.

Norway buys more

For some overseas entities, it is easier to be exposed to Bitcoin through US listed companies that have a large amount of BTC on their balance sheets.

This is an approach that Norwegian sovereign wealth funds are being tackled with investors backed by several other European states, choosing to stocks in crypto adjacent companies rather than directly retaining the crypto.

Norges Bank Investment Management (nbim)According to a new memo from the K33 survey, the entities that manage the investment sector of the Norwegian Central Bank and the country’s $2 trillion pension funds currently hold 7,161 BTC indirectly. That figure is up 192% from 2,446 BTC a year ago and 87% from 3,821 BTC held at the end of 2024.

The biggest part of the exposure, 3,005 BTC, comes through strategic stocks. The rest spreads to companies like Marathon Digital, Coinbase, Block and Metaplanet. K33 also counted GME (GameStop) And some small holdings that contribute to the total.

Still, exposure remains small in context. Norwegian funds own stocks in thousands of companies across the global market, and the value of their Bitcoin-related investments is only a small fraction of their total holdings. At its current market price of $117,502 per BTC, the fund’s 7,161 BTC is approximately $841 million, or less than 0.05% of its $2 trillion portfolio.

The sudden increase over the past year could indicate an increased institutional amenity with the asset class, but that is not a major strategic change.

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A recent blog post from the European Central Bank (ECB) raised alarms about the implications of the US dollar’s dominance in the stablecoin market, especially in light of President Donald Trump’s recent signing of the GENIUS Act into law.

This trend could allegedly lead to increased borrowing costs for European nations, diminish the autonomy of the European Central Bank, and deepen geopolitical dependence on the United States. 

European Union Urged To Fast-Track Digital Euro

The ECB’s adviser, Jürgen Schaaf, claimed that the strategic advantages afforded to the US through its “stablecoin dominance” could allow it to finance its debt more cheaply while extending its global influence.

The post emphasizes the potential consequences for Europe, warning that reliance on dollar-based stablecoins for payments and savings could undermine the ECB’s control over monetary policy. 

According to Reuters, the market for euro-denominated stablecoins is currently minimal, with a market capitalization of less than 350 million euros, compared to similar cryptocurrencies from companies like Tether (USDT) and Circle (USDC). 

In light of this competitive landscape, the ECB’s adviser urged the European Union to accelerate the development of a digital euro and encourage the creation of more euro-based stablecoins.

Amid these tensions, the recently enacted GENIUS Act in the US has ignited fresh interest among traditional finance firms in dollar-pegged cryptocurrencies. 

Wall Street Giants Explore Opportunities In Stablecoins

Interactive Brokers Group, a brokerage firm with a market capitalization of around $110 billion, is reportedly considering launching its own stablecoin. 

The firm’s founder, Thomas Peterffy, indicated that while they are still evaluating how to implement these assets for customers, they recognize the transformative potential of blockchain technology in the broader financial landscape.

Interactive Brokers has already established partnerships with crypto platforms like Paxos and is an investor in crypto exchange Zero Hash, enabling it to offer trading in various cryptocurrencies. The firm is now focused on creating a system for instant, 24/7 stablecoin funding for brokerage accounts. 

However, Peterffy also expressed caution about the rapid adoption of cryptocurrencies, noting, “It’s basically hard to grasp its fundamental value.” He emphasized that while he is open to the idea of stablecoins, he remains skeptical about their intrinsic worth.

In a parallel development, Robinhood has launched its own stablecoin, the Global Dollar Network, in collaboration with other crypto platforms such as Kraken and Galaxy Digital. 

This stablecoin, issued by Paxos, is pegged to the US dollar and aims to facilitate transactions without the need for traditional banking systems. Similarly, asset manager and crypto exchange-traded fund (ETF) issuer WisdomTree recently unveiled its own stablecoin, USDW.

These developments are part of the progressive steps being taken in the US toward a more accommodative digital asset environment. Wall Street firms like JPMorgan, Citigroup, and Goldman Sachs are also exploring the potential of these assets for their operations. 

Featured image from DALL-E, chart from TradingView.com 

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Welcome to Slate Sundays, CryptoSlate’s new weekly feature showcasing in-depth interviews, expert analysis, and thought-provoking op-eds that go beyond the headlines to explore the ideas and voices shaping the future of crypto.

If 2024 was the year of the dragon, 2025 has been the year of the stablecoin. U.S. dollar-backed digital assets, in particular, have taken front and center stage, achieving buy-in all the way from the highest office.

The World Liberty stablecoin, USD1, was launched in March by a DeFi platform majority-owned by members of the Trump family. Then Vice President JD Vance set the stage alight at the Bitcoin Conference in May, clarifying the administration’s bullish stance on stablecoins and their ability to act as a “force multiplier” for U.S. economic power.

Stablecoin issuer Circle’s $20 billion IPO followed, igniting what the Bankless podcast duo coined “stablecoin summer.” And last week, the GENIUS Act was signed into law, becoming the first piece of U.S. legislation to directly regulate digital assets, creating a turning point for global finance.

Even Jamie Dimon’s getting in on the action despite his personal skepticism about Bitcoin and digital assets. He may publicly claim not to understand their appeal, but there has long been a gap between what Dimon says and what Dimon does: America’s largest bank has been a pioneer in blockchain technology, developing its own stablecoin, JPM Coin, since 2019.

So, what’s with all the latest developments in moving value worldwide, and what does the GENIUS Act mean for the future of crypto, TradFi, and the global economy? I asked experts from the technical, legal, and financial fields to throw some light on the subject and unpack the types of advancements we may see in the years ahead.

TL;DR: What is the GENIUS Act?

For those of you who’ve been hiding under a rock, let me guide you out of your shadowy abode. The GENIUS Act stands for “Guiding and Establishing National Innovation for U.S. Stablecoins Act of 2025,” but “GENIUS” is a lot more catchy. It’s the first comprehensive U.S. federal law that specifically regulates “payment stablecoins” (AKA, digital tokens pegged to fiat money).

The GENIUS Act establishes a long-awaited licensing and oversight regime for stablecoin issuers, mandating full 1:1 reserve backing, imposing strict consumer protection measures, and creating a clear legal footing for integrating stablecoins into mainstream finance.

The law also bars non-financial companies like the Facebooks and Googles of this world from issuing stablecoins without special approval, applying substantial penalties for noncompliance (violations can incur fines of up to $200,000 per day, and criminal penalties including up to five years’ imprisonment).

Why is the GENIUS Act such a big deal? Well, because after years of opacity and uncertainty surrounding stablecoin issuers in the United States, it provides the first federal legal framework, providing clarity on how to run their operations. As international law firm, Winston & Strawn LLP writes in a recent blog:

“The Act pushes stablecoin issuers into a regulatory regime similar to that of banks. For many firms, this means a need to hire compliance officers, invest in risk management systems, and potentially partner with experienced regulated institutions to meet the standards set by Congress.”

Moon Pursuit Capital is a fast-growing crypto investment fund. Its founder, Utkarsh Ahuja, shared his thoughts on just how groundbreaking the GENIUS Act is, commenting:

“The GENIUS Act is a major step forward, not just for crypto, but for U.S. leadership in global finance. For the first time, we have clear rules around stablecoins, which are the backbone of open, programmable money infrastructure. For too long, uncertainty has held the industry back and driven builders offshore. The GENIUS Act changes that. It gives stablecoins legal clarity and sets the stage for broader crypto adoption.”

Genna Garver is a partner at the international law firm Troutman Pepper Locke LLP. She also provided her thoughts on the GENIUS Act to share with CryptoSlate readers. She said:

“This is a watershed moment for institutional financial services. The GENIUS Act authorizes the tokenization of fiat currency and regulation of the same, thereby legitimizing digital US dollarization.”

A perfect storm for digital assets with tailwinds on overdrive

Guillaume Poncin is CTO at Alchemy, a developer platform that facilitates over $100 billion in transactions annually for businesses across the ecosystem, from Fortune 500 firms like Robinhood, Visa, JPMorgan, and PayPal, to crypto-native companies like Coinbase and Circle. He told me via written commentary:

“The GENIUS Act provides the clarity that institutions have been waiting for, and it helps legitimize programmable money that operates at internet speed. This legislation is important because it reduces regulatory uncertainty that has held back institutional adoption.”

What’s more, the GENIUS Act does not exist in a vacuum. With a groundswell of favorable momentum toward digital assets from the current administration, the tailwinds are blowing like crazy. The unwinding of the stranglehold on crypto during the Biden years, and the repeal of key pieces of prohibitive legislation such as SAB 121, which prevented U.S. banks from providing custody of digital assets, are creating a perfect storm. Poncin enthused:

“We saw immediate interest from major banks that had previously been cautious. Now, with GENIUS in place, we believe every major bank will move toward issuing or supporting stablecoins in some form. It unlocks the next era of programmable money that is trusted, regulated, and built for internet-scale speed.”

The GENIUS Act also serves to extend U.S. dollar dominance, spurring innovation based on the USD and reinforcing the dollar’s standing as the world’s reserve currency for decades to come. As crypto-native investment firm, CoinFund, president Chris Perkins commented:

“The GENIUS Act will go down in history as a law that served as a foundational step in the mainstreaming of crypto as an asset class. By catalyzing innovation on our greatest export, the greenback, GENIUS will position the dollar as the global reserve currency for decades to come, enhance national security, and unlock financial opportunity across the globe

Stablecoins deliver obvious utility by offering inexpensive, 24/7 payments. But, by enabling seamless and efficient access to U.S. dollars across the developing world, stablecoins will also serve as a store of value when local monetary policy goes awry.”

A flood of stablecoin killer apps

Stablecoins have come a long way from their original use case as a means to store wealth, while avoiding the volatility of digital assets like Bitcoin and Ethereum, to be enshrined in a landmark bill recognizing them as key financial infrastructure. So what are some of the main use cases the GENIUS Act enables, and what can we expect from the coming years? Ahuja comments:

“The GENIUS Act unlocks real innovation, instant remittances, AI-native payments, and global commerce without intermediaries.”

Poncin adds:

“The opportunity in stablecoins isn’t in holding them, unless they’re being used in DeFi for yield opportunities. The real opportunity lies in companies issuing their own stablecoins, such as payment processors integrating stablecoins and fintechs launching their own tokens.

We’re seeing fintechs generate meaningful revenue from stablecoin reserves through treasury management. This can potentially be $100M+ annually on $2-3B in deposits. The real value creation comes from how stablecoins are enabling the new financial system.”

Beyond experimenting with its own stablecoins, JPMorgan made headlines this week for its moves to allow clients, particularly institutional ones, to use bitcoin as collateral for loans. Thanks to the GENIUS Act, the bank is developing a new program that would allow clients to pledge their Bitcoin or Ether holdings to secure cash loans, much as they might with stocks or real estate.

While JPMorgan already enabled clients to borrow against crypto ETFs, the move to accept direct crypto holdings as collateral is a paradigm shift for an institution helmed by one of the industry’s most vocal critics.

The GENIUS Act’s significance extends across the industry, with DeFi platforms and tokenized RWAs taking note as well. Orest Gavryliak, the chief legal officer at DEX aggregation pioneer, 1inch Labs, told me:

“Tokenized technology has become a major area of focus for TradFi giants like BlackRock, JPMorgan, and more, as it represents marked improvement on the current setup of financial standards. It is also a major benefit in terms of the accessibility of liquidity. By transcending geographic barriers, the global nature of tokenization, enabled by blockchain technology, allows markets with limited, isolated liquidity to unify and access liquidity from multiple sources—available 24/7, in real time.”

Poncin expands:

“Banks will enable customers ‘investor-grade opportunities, like trading in private equities, and get loans against their holdings. Small businesses can finally harness the remote work era to pay overseas workers affordably. We’re about to see a flood of not one, but hundreds of stablecoin ‘killer apps’, all enabling people to exchange and create value in ways unimaginable just months ago.

Tokenized treasuries are growing significantly. Stablecoin issuers, such as Tether, hold substantial U.S. debt positions. We’re seeing increased interest in tokenizing traditionally illiquid assets like private credit and real estate to unlock liquidity. There’s also growing development of infrastructure to make RWAs composable with DeFi protocols.

The real innovation is about making these assets programmable. This enables new financial products like automated lending against tokenized assets or smart contracts that can interact with real-world collateral.”

Does the GENIUS Act mean DeFi summer on steroids?

One interesting clause in the GENIUS Act is the prohibition on paying interest or yield to stablecoin holders, which could mean an explosion of demand in DeFi yield-earning opportunities. Perkins says:

“Under GENIUS, stablecoins do not pay interest to end users, and without interest, stablecoins are depreciating assets. So, holders will seek yield. And that’s where DeFi comes in. If the Treasury Department’s projections are correct and trillions of stablecoins come into the system, expect DeFi summer on steroids as users seek to maximize yield by engaging across a variety of yield strategies. Users will be drawn to yield-bearing vaults, and they will commission AI agents to optimize their returns.

With the U.S. back in the lead, countries around the world will need to accelerate and optimize stablecoin policies of their own. The $7.5 trillion per day FX market stands to benefit. Watch this space.”

Will Beeson, founder of MultiLiquid, and former co-lead of Standard Chartered’s Tokenization platform, comments:

“The outright ban on stablecoin yield marks a critical inflection point. Capital is already shifting. Ethereum is outperforming Bitcoin as traders seek returns via Ethereum-native protocols and tokenized funds.

The stablecoin market is entering a phase where only institutions that can put capital to work efficiently will survive. But there’s a bottleneck: stablecoins move 24/7, Treasurys don’t. Liquidity infrastructure that bridges this gap is now mission-critical.”

Gavryliak adds:

“Regulatory clarity, like the GENIUS Act, means companies and institutions can now look to leverage stablecoins for fast, cost-efficient cross-border payments, treasury optimization, and real-time settlement, bypassing TradFi banking rails and unlocking operational efficiencies. It’s a positive step forward for DeFi.

It also provides security for institutions and other TradFi operators, who can now put their full weight behind the sector. Those previously just dipping their toes in can now dive headfirst with the clear guardrails.”

Could politics halt the revolution?

With digital assets an increasingly partisan issue, and key Democrats like Elizabeth Warren holding onto her anti-crypto army, is there any risk of the GENIUS Act, or any other legislation, being reversed if and when the blue team returns to power? And with the Trump family so overtly benefiting from digital assets, does this clear conflict of interest pose any threat? Poncin believes it’s too late for that:

“The momentum in crypto adoption transcends political divisions. We work with institutions across the spectrum that recognize blockchain’s potential. The repeal of SAB 121 had bipartisan elements, and there are crypto advocates across party lines. Major banks, asset managers, and payment companies are building on blockchain because it offers superior technology for settlement and programmable money.

Moreover, the cryptocurrency industry has demonstrated resilience in the face of various challenges over the years. What matters is that institutions are building real utility on blockchain. These use cases exist because they solve real-world problems, such as settlement speed, operational costs, and 24/7 availability. That’s what drives lasting adoption.”

Garver is also positive that GENIUS brings in lasting change. She says:

“During the legislative process, there were numerous attempts to debate and offer amendments to the bill to address certain conflicts of interest, but those amendments were not adopted as part of the final GENIUS Act. Now that we have final legislation authorizing permitted payment stablecoins, digital asset adoption likely will depend more on the use cases.

Not unlike ATM adoption of the last generation, at some point, it’s just too convenient and beneficial not to get on board. I don’t see potential users sitting on the sidelines as a sign of protest. I think the ship will quickly sail, and crypto will become too integrated into the fiber of our economy, the global economy, and the financial services industry.”

With the ballooning global debt, liquidity expansion, geopolitical uncertainty, and lowering interest rates, favorable regulation for digital assets in the U.S. could mean that “nothing stops this train.” As Ahuja affirms:

This is, frankly, as constructive a macro setup as you can ask for, short of resolving event-driven risks like tariffs or Middle East escalation. But from a pure market-structure and liquidity standpoint, the conditions are primed.

We’re entering a rare window where fundamentals, liquidity, and macro dynamics are all pointing in the same direction; and that’s precisely when the most compelling upside gets unlocked.”

Mentioned in this article

Victims of a bank data breach are set to receive up to $3,000 each after a settlement was reached in a class action lawsuit.

According to the settlement administration portal, impacted customers at Arizona-based Evolve Bank & Trust who file a claim and provide documentary evidence of losses resulting from the data breach stand to receive up to $3,000.

A flat cash payment of $20 will also be available but claimants can only choose one or the other, not both.

“In addition to selection one of the Cash Payment options, Settlement Class Members may elect one (1) year of monitoring that will provide the following benefits: Credit Monitoring, real-time alerts, and insurance coverage for up to $1,000,000 for identity theft.”

Claims must be filed by October 30th. A final approval hearing of the settlement will be held on November 14th.

The lawsuit against Evolve Bank & Trust was filed in January and alleges that cybercriminals infiltrated the billion-dollar lender’s information systems and gained access to sensitive and confidential information.

In a notice to customers in July of 2024, Evolve Bank said the data breach had occurred between February and May of 2024.

“…it appears the criminals downloaded information from our databases and a file share that included names, Social Security numbers, bank account numbers, and contact information for most of our personal banking customers, as well as customers of our Open Banking partners. We have also learned that personal information relating to our employees was also likely affected.”

Evolve Bank & Trust, which started as First State Bank in 1925, is headquartered in West Memphis, Arizona. It boasts of around $1.6 billion in total assets and has five branches in the US.

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Billionaire venture capitalist Chamath Palihapitiya says staying bullish on the markets will pay off, pointing to two key financial factors driving his conviction.

In a new episode of the All-In Podcast, Palihapitiya takes a close look at the M2 money supply chart, which has been on the up and up.

The billionaire notes that M2 growth is one of the key reasons why the S&P 500 is in the midst of a strong uptrend.

“If I was a betting man… I think the free money trade here is to be levered long. I think you can make a lot of money right now. Why is that? The first chart I want to show you is the velocity of money… This is the M2 money supply. It’s a measure of how much money is circulating in the economy. 

What this shows is the impact of rates, where we were able to start to slow down and contract the money supply. But then as the economy stabilized and people started to project what was possible in 18 to 24 months, you started to see money coming back into the system. That’s what has given a bid to the equity markets.”

The billionaire is also keeping a close watch on the amount of money invested in money market funds, which are financial instruments that provide yields that are largely influenced by the prevailing interest rates set by the Federal Reserve.

Palihapitiya says that once the Fed starts cutting rates, trillions of dollars in capital stashed in money market funds will likely be invested in the stock market.

“Look at how much money is sitting in money market funds, and what this starts to show you is you have trillions of trillions of dollars of dry powder in the sidelines that will need to find a home. 

I think that [Fed chair] Jerome Powell is in an increasingly [untenable] situation because he will be looked at as politicizing the office of the Federal Reserve. There is enough data that can justify cutting rates. If you cut rates, two things will happen. 

Number one is people will take some amount of money out of the money market funds because they will want to go and seek superior returns somewhere else. It will increase the velocity of money at the same time. You put those two things together that is a bid to the equity markets.

And so if we’re at an all-time high today with rates at 4.5% and Powell’s back is against the wall to cut, the only road from here is probably up…

I think if Powell starts an aggressive cutting program… you could see the S&P 500 at 7,000.” 

As of Monday’s close, the S&P 500 is trading at record-high levels of 6,204.

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Back in the 1800s, cities ran on horses. Need to travel? Move stuff? Deliver mail? You used a horse.

Whole industries were built around them – stables, blacksmiths, hay sellers.

Horses were basically the backbone of urban life… but they were also, quite literally, the crap of it. Streets were full of manure, dead horses often just… stayed there, and diseases ran wild.

So, it worked, but it was gross.

Then, cars showed up – and you’d think people would be thrilled. No more poop on the streets, yay, amirite?

Wrong. Early cars were seen as loud and unreliable. Some cities even banned them.

And of course, all the horse-dependent industries freaked out – because this new “car” thing didn’t just seem impractical, it threatened their entire way of life.

But in 1908, Ford released Model T – a car that regular people could afford. Roads improved. Mechanics appeared. Cities got cleaner.

And suddenly… cars made sense.

By the 1920s, horses stopped being essential. It took nearly 30 years and fierce resistance, but the world moved on.

You probably see where this is going.

Crypto today is the car. TradFi is the horse lobby, judging innovation by old standards and clinging to a system that kinda works… but is also crappy.

I’m bringing this up because the Bank for International Settlements (BIS) recently released a report on the future of finance – and they had a lot to say about stablecoins.

They argue that while stablecoins offer some useful innovations, they are fundamentally unfit to be the core of tomorrow’s monetary system.

Let’s unpack some of their reasons – and where they hit or miss:

1/ Stablecoins aren’t consistent enough

BIS pointed out that different stablecoins (USDC, USDT) come from different companies, so their prices can vary.

Why it’s a valid concern:

If people have to double-check which stablecoin they’re getting – and whether it’ll hold value – that isn’t great for trust or efficiency.

But also:

Bank rates, payment apps, or dollars in different countries vary, too.

Small price differences don’t really matter to most users – they just want something that’s fast, easy to use, and cheap to send.

And stablecoins do that pretty well. Millions already use them daily – that’s a better reality check than obsessing over perfect 1:1 rates.

2/ Stablecoins aren’t flexible

Stablecoins don’t have elasticity – you can’t just print them on demand. You can only create new stablecoins if someone deposits real money or assets first.

Sure:

In a crisis, central banks can pump money into the system to calm markets.

Stablecoins can’t do that, which could make shocks harder to manage.

But also:

Elasticity is also how we got inflation, bailouts, and runaway debt.

Stablecoins are tight on purpose – to avoid those exact problems.

3/ Stablecoins are too anonymous

Because stablecoins run on public blockchains, and don’t always require ID checks, they can be used without revealing who’s behind the money.

Why it’s a valid concern:

BIS says it’s the dream setup for criminals. If you don’t know who’s moving the money, it’s harder to catch ’em.

However:

Blockchain transactions are actually more traceable than cash, because they’re permanently recorded on a public ledger.

Plus, most dirty money still flows through traditional banks.

4/ Stablecoins could destabilize financial markets

Most stablecoins are backed by government bonds.

If a lot of people try to cash out during a crisis, those bonds might have to be sold fast, which could cause prices to drop.

Why it’s a valid concern:

That kind of shock can push up borrowing costs and cause market instability.

But also:

The problem isn’t with stablecoins themselves – it’s with the lack of proper rules around how they’re managed.

Blaming the tech for regulatory lag is backwards.

5/ Stablecoins aren’t the future – but they hint at it

BIS says stablecoins won’t replace money, but they show what users want: speed, privacy, 24/7 access.

From their angle:

CBDCs could take the best parts of crypto and deliver them with more protections.

But:

Stablecoins exist because the old system failed too many people out.

Repackaging freedom into a new bureaucracy doesn’t fix the root issue.

In the end, the BIS is basically the central bank for central banks, and its job is to protect the TradFi system. Of course they’re gonna back the horse.

Stablecoins, and crypto in general, are the car.

Sure, they’re not perfect. But they respond to real human needs: access, autonomy, speed, and control. Things the old system isn’t delivering.

So now we wait: will the system evolve… or keep pretending the streets aren’t covered in horse poop?

Time will tell.

President Donald Trump’s advisor on crypto and artificial intelligence (AI), David Sacks, is highlighting a catalyst that could dramatically increase demand for US treasuries.

In a new Bloomberg interview, Sacks says the passing of the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act) in the U.S. Senate and the potential signing of the piece of legislation into law offers “regulatory clarity and stability” for the stablecoin crypto sector.

According to Sacks, the GENIUS Act could trigger massive demand for US government debt from various parts of the world.

“… the [stablecoin] float is expected to grow from, call it, roughly $250 billion to trillions of dollars. And that would create more demand for the US dollar internationally. I think you could see other economies start to dollarize from the bottom up as their citizens would prefer to use US digital dollars as opposed to whatever fiat currency they’re using. And that would create potentially trillions of dollars of new demand for US treasuries.”

The GENIUS Act will also spur innovation in the payments industry, according to the White House advisor.

“And I think that the bill will provide the framework that will give confidence to a lot of traditional financial players to enter the space. And so I think you’re going to see new stablecoin products. And I think you will also see stablecoins being used as payments. I think this is one of the really exciting things about the bill, is that blockchain infrastructure will be used as a new kind of dollar-based payment system, that’s faster, more efficient, smoother. It’s a payment system of the future.”

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Foreign exporters are reportedly less interested in being paid in US dollars due to the currency’s recent volatility, according to US Bank.

Paula Comings, head of FX sales at US Bank, says in a new interview with Bloomberg that American importers have been reporting to her that their foreign export partners want to be paid in the euro, Chinese renminbi, the Mexican peso and the Canadian dollar.

Comings notes that exporters want to limit their exposure to the dollar’s price movement.

“A lot of clients previously were reluctant because dollars were sacred in the eyes of the supplier. Now the vibe from overseas vendors seems to be, ‘Just give us our currency.’”

For example, one US Bank client, a lumber company from the Midwest, now uses euros to purchase hardwood imports from Europe, while a second, a homeware retailer, now plans to pay for imports from China with yuan. Both firms previously used dollars to pay exporters.

The US Dollar Index (DXY) is trading at 98.92 at time of writing. The index is up 5% in the past five days but down nearly 9% year to date.

US Bank has $659.191 billion in total assets as of March 31st, 2025, per statistics from the Federal Reserve.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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