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A comment on Big Banks Explore Venturing into Crypto World Together with Joint Stablecoin.

Re:Big Banks Explore Venturing into Crypto World Together wi... by cariaso on Monday May 26, 2025 @12:02PM (#44098679)
If the GENIUS Act becomes the law, we're in for a FUBAR situation when a stablecoin issuer ends up insolvent. Even more concerning, if a bank custodian for a stablecoin issuer's reserves ends up insolvent, the claims of the stablecoin investors will come ahead of the bank depositors. That's right. Crypto comes ahead of ma-and-pa.

https://www.creditslips.org/creditslips/2025/05/the-genius-a...

[ Parent | on HN ]
Re:Big Banks Explore Venturing into Crypto World Together wi... by scyclow on Monday May 26, 2025 @02:20PM (#44100089)
I think this is why regulation is so important. As the GENIUS Act is written, all funds backing the coin need to be held in cash or Treasuries. And if they go bankrupt, coin holders would have a higher claim on that money than creditors. If stablecoins aren't regulated then what's to stop issuers from creating stablecoin products without those protections?
[ Parent | on HN ]