-
The White House may back stablecoin legislation if banks support integration into regulated finance.
-
The GENIUS Act would require full backing and oversight to strengthen the dollar’s global role.
-
Officials see stablecoins cutting remittance costs while preserving banks’ lending role.
Recent meetings indicate the White House is open to integrating stablecoins into future legislation, provided banks endorse the move. Officials are examining limited stablecoin rewards to enhance the financial system. The discussions aim to protect the dollar’s global dominance and modernize payment infrastructure while maintaining regulatory oversight.
Stablecoins and Dollar Dominance
Washington increasingly views regulated stablecoins as tools to export the dollar onto digital rails. Every new dollar-backed stablecoin requires purchasing U.S. Treasuries, boosting demand for national debt.
Officials have stated that properly regulated stablecoins can reinforce the dollar’s status as the global reserve currency. This approach simultaneously supports monetary stability and incentivizes broader adoption of digital payments, notably for cross-border transactions.
The GENIUS Act, designed to establish a U.S. framework for payment stablecoins, requires full backing and regulatory oversight. Lawmakers see this as a way to ensure the United States remains competitive in digital dollar infrastructure, particularly amid rising international interest in programmable money and blockchain-based settlements.
Modernizing Payments and Expanding Financial Access
Stablecoins promise faster settlement, lower fees, and 24/7 liquidity without replacing the dollar, according to industry observers. Remittance costs in some countries can reach six to eight percent, and traditional banking often delays settlement by two to three days. In contrast, crypto rails enable instant, low-cost transfers while preserving the underlying dollar system.
At the same time, experts caution that traditional banks remain crucial for lending and financial stability. Deposits fund loans for housing and business, functions not fully replicable by stablecoins or crypto providers.
Policymakers are balancing the efficiency of digital payments with the safety and soundness of the existing banking system, ensuring new digital tools complement, rather than disrupt, established financial infrastructure.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
New York Investment Maintains Federal Reserve Rate Cut Expectations, Oil Prices Surge Short-Term Difficulty in Shaking Policy Path
ChainCatcher reports that, according to Jinshi, Saira Malik, an investment analyst at New York-based firm Nuven, stated in a research report that the widespread impact of the US and Israel's attacks on Iran remains to be seen. She believes that global markets may experience more volatility, and the far-reaching effects will become clearer over time. While the surge in oil prices could push inflation higher, Malik expects this will not affect the Federal Reserve's policy in the short term. She maintains her forecast of two interest rate cuts by the Fed this year and believes that the 10-year US Treasury yield will fluctuate around 4%.
GateNews35m ago
JPMorgan: Crypto Market Legislation Expected to Pass by Mid-Year! 8 Major Bullish Factors to Ignite the Second Half of the Year
JPMorgan predicts that the CLARITY Act will be passed by mid-year, establishing a clear regulatory framework for the U.S. cryptocurrency market and triggering a rally in the second half of the year. If the bill is approved, it could bring multiple positive impacts, with long-term Bitcoin prices potentially reaching $266,000, sparking institutional investment interest.
CryptoCity41m ago
U.S. Senate passes landmark bill 84:6! Digital dollar faces significant resistance, CBDC issuance explicitly restricted
The U.S. Senate passed the "21st Century Housing Roadmap Act," which includes restrictions on central bank digital currencies, with 84 votes in favor and 6 against, demonstrating bipartisan consensus. The bill requires the Federal Reserve not to issue digital dollars until explicitly authorized by Congress and also focuses on housing supply and affordability in an effort to address the housing crisis. The passage of this bill could have a profound impact on future digital currency regulation.
GateNews1h ago
Kazuo Ueda: Bank of Japan to conduct blockchain-based currency settlement trial
ChainCatcher News, Bank of Japan Governor Kazuo Ueda on Tuesday stated that the central bank will conduct experiments using blockchain technology to settle deposits held by financial institutions at the central bank. These experiments will be part of the Bank of Japan's "sandbox project," aimed at enabling the use of central bank digital currency for various settlement scenarios through blockchain technology. Analysts believe that introducing blockchain technology could enable 24/7 real-time settlement and reduce systemic congestion risks.
GateNews2h ago
U.S. Senate Housing Bill Links Affordability Reforms With CBDC Restrictions
The U.S. Senate housing bill now includes a provision banning the Federal Reserve from issuing a retail CBDC until at least 2031, reflecting growing congressional interest in digital currency policy and potential impacts on financial technology strategies.
TheNewsCrypto2h ago
Arthur Hayes: The U.S. has fought Middle Eastern wars for 40 years, and every time they cut interest rates. Don't expect an exception this time either.
Author: Arthur Hayes
Compiled by: Deep Tide TechFlow
Introduction: The core argument of Hayes's article is simple: from the Gulf War in 1990 to the War on Terror in 2001, every U.S.-led Middle East war has been followed by the Federal Reserve cutting interest rates. He believes that the Iran war in 2026 will repeat this same historical logic, and that will be the time to increase Bitcoin holdings. The viewpoint is clear and logical; you don't have to agree after reading, but it's worth serious consideration.
Full text below:
(All opinions in this article are solely the author's personal views and do not constitute investment advice or recommendations to participate in investment transactions.)
Under the instruction of Donald J. Trump, the U.S. President known for his preference for peace, the U.S. Department of Defense has jointly launched an offensive Agent AI weapon—a deadly, entirely new
PANews2h ago
