Tag: Stablecoins

GENIUS Act Passes Senate: What It Means for Crypto and Stablecoin Investors

Posted on by slightbourne@noblecapitalmarkets.com

In a historic move for the crypto industry, the U.S. Senate has passed the GENIUS Act—short for Guiding and Establishing National Innovation for US Stablecoins—laying the foundation for the first federal framework governing stablecoins. Though the bill still awaits approval from the House of Representatives and President Trump’s signature, its Senate passage marks a seismic shift in crypto policy that could reshape the digital asset landscape.

Stablecoins, digital tokens typically pegged to the U.S. dollar, are widely used for trading, payments, and preserving value in volatile markets. The GENIUS Act aims to bring oversight and legitimacy to this rapidly growing segment by requiring issuers to maintain full reserves in cash or U.S. Treasury assets, undergo routine audits, and publicly disclose their reserve compositions monthly.

The legislation has already catalyzed a dramatic response. According to CoinDesk, the total market capitalization of stablecoins surged to a record $251.7 billion, reflecting a 22% year-to-date increase. Industry leaders, including Circle (CRCL)—the largest U.S. stablecoin issuer—have hailed the bill as a breakthrough. Circle’s stock has soared 400% since going public in early June, signaling investor confidence in the sector’s regulated future.

“This bill gives us the right foundation,” said Dante Disparte, Circle’s Chief Strategy Officer. “Whether you’re a bank, a fintech, or a non-bank issuer, you now have a common regulatory floor.”

One of the most consequential elements of the GENIUS Act is its two-tiered regulatory approach: large issuers with over $10 billion in assets will fall under federal oversight, led by the Federal Reserve and Office of the Comptroller of the Currency (OCC), while smaller issuers will be supervised by state regulators. Additionally, the act prohibits stablecoins from paying interest, a provision meant to draw a clear line between digital currencies and traditional savings products.

The bill also restricts members of Congress and their families from profiting off stablecoin ventures—though notably excludes President Trump and his family, sparking some partisan criticism. Trump’s growing involvement in the sector, including the launch of USD1 stablecoin by his crypto firm World Liberty Financial, has raised eyebrows and energized Republican support.

Big banks and corporations are now eyeing stablecoin issuance. Bank of America has confirmed it is exploring options, and Amazon and Walmart are reportedly assessing opportunities, though both companies remain cautious. The potential for new entrants to bypass traditional payment rails like Visa and Mastercard could be disruptive—and lucrative.

Despite concerns over investor runs and tech monopolies, the GENIUS Act includes strict consumer protection clauses, criminal penalties for noncompliance, and Treasury approval for tech firms wishing to issue stablecoins. Treasury Secretary Scott Bessent projects the U.S. stablecoin market could exceed $2 trillion by 2028 if the bill becomes law.

As the House prepares to review the bill—possibly attaching it to broader crypto legislation—investors are bracing for what could be the most significant wave of adoption and innovation in crypto history. If passed in full, the GENIUS Act could signal not just regulation—but a rebranding of stablecoins from speculative tools to mainstream financial instruments.

Ripple’s Rejected Bid for Circle Signals Stablecoin Consolidation Race Is Heating Up

Posted on by slightbourne@noblecapitalmarkets.com
Key Points:
– Ripple reportedly made a $4–$5 billion bid to acquire USDC issuer Circle, which was declined.
– Circle is pursuing a public listing and is currently in a regulatory quiet period.
– The deal reflects intensifying competition in the stablecoin space ahead of expected U.S. legislation.

Crypto payments firm Ripple made headlines this week after reports emerged that it offered between $4 billion and $5 billion to acquire Circle, the issuer of the USDC stablecoin. While the offer was ultimately turned down, the attempted acquisition highlights a growing race among major players in the digital asset space to consolidate infrastructure and scale stablecoin capabilities ahead of impending U.S. regulation.

According to Bloomberg, Ripple’s bid was rebuffed by Circle as undervaluing the company. The timing is notable: Circle recently filed for a public listing with the SEC and is currently in a regulatory “quiet period,” restricting its ability to comment on financial matters. Nevertheless, the attempted acquisition sheds light on Ripple’s expansion strategy and broader trends in the maturing stablecoin ecosystem.

Ripple CEO Brad Garlinghouse has previously stated the company would be “more proactive in looking at acquisitions,” particularly in blockchain infrastructure. Ripple’s recent launch of its own stablecoin, RLUSD, on Ethereum and the XRP Ledger is consistent with this strategy. RLUSD has grown quickly in 2025, with its market cap rising to $317 million, but it still trails far behind Circle’s USDC, which boasts a market cap exceeding $62 billion and is issued across 19 blockchains.

Stablecoins—cryptocurrencies pegged to fiat currencies like the U.S. dollar—have become central to the crypto economy. They’re used for everything from trading and remittances to DeFi protocols and cross-border payments. As such, ownership of a dominant stablecoin platform offers a critical foothold in the broader digital asset infrastructure.

For Ripple, acquiring Circle would have provided a powerful shortcut to stablecoin dominance. Beyond simply growing its token footprint, the deal could have given Ripple access to Circle’s institutional network, regulatory goodwill, and technical infrastructure—all valuable assets as Congress debates landmark stablecoin regulation. While Ripple’s own RLUSD is gaining traction, it lacks USDC’s deep liquidity and institutional adoption.

This isn’t the first major deal in the stablecoin space. In October 2024, payments firm Stripe acquired Bridge, a stablecoin platform, for $1.1 billion—one of the largest crypto M&A deals to date. The Ripple-Circle talks, though unsuccessful, suggest that much larger transactions could be on the table as fintech and crypto firms position themselves ahead of coming legislation.

Lawmakers in Washington are working on frameworks to regulate stablecoins and digital asset markets. With increased clarity, more traditional financial players—like Bank of America or PayPal—could soon enter the space. That raises the stakes for crypto-native firms like Ripple and Circle, which are racing to cement their roles before regulations unlock the next wave of competition.

For small and micro-cap crypto investors, this event underscores the growing importance of strategic acquisitions in shaping the sector’s future. Ripple’s failed bid also suggests that Circle sees itself on a trajectory toward greater independence and valuation—particularly with a public listing on the horizon.

Whether or not a Ripple-Circle deal is revived, it’s clear the stablecoin wars are accelerating—and consolidation could define the next phase of the crypto market.