White Collar & Government Investigations Blog

Olshan litigation partner John Moon and counsel Daniel Stone authored an article in Law360 entitled “Post-Genius Landscape Reveals Technical Stablecoin Hurdles.” In the article, John and Dan discuss the stablecoin market following the passage of the GENIUS Act earlier this year. The law grants stablecoins new legal legitimacy but raises questions for how stablecoin issuers will compete.  As John and Dan note, “The GENIUS Act eliminates the first primary means of differentiation: it prohibits stablecoin providers from paying interest to stablecoin holders,” compelling issuers to seek new ways to stand out in a market where every coin is designed to stay at a stable $1 value. At the same time, the GENIUS Act introduces fresh challenges around technical integration, cross-chain compatibility and regulatory competition across states. From Wyoming’s state-backed Frontier Token to New York’s stringent BitLicense regime, diverse regulatory approaches may define the next stage of the industry’s evolution. Ultimately, the success of stablecoins—and the GENIUS Act itself—will depend on the ability of regulators and private innovators to craft rules that are both technologically sound and capable of protecting consumers in a rapidly evolving financial landscape.