How can USDtb & frxUSD be GENIUS Act compliant on the reserve side? Since the Act passed, not only @circle’s USDC & @paypal’s PYUSD but every stablecoin issuer is working to comply. But hold on. It’s not just centralized issuers like Circle or Paxos. Protocols like @ethena_labs (USDtb) & @fraxfinance (frxUSD) also claim their stablecoins comply with the GENIUS Act. 🤯 Is that really true? --- Anyone closely following stablecoins will have looked into the reserve compositions of USDtb and frxUSD. Unlike reserves composed directly of Treasuries or repos, these are primarily structured with tokenized T-bills funds. For example, - frxUSD is largely backed by @superstatefunds USTB and @BlackRock BUIDL, alongside WTGXX and USDB. - USDtb, in contrast, is backed only by BUIDL and USDC. This naturally raises a key question: if the GENIUS Act requires reserves to be held in cash-equivalent assets such as short-term Treasuries, repos, or bank deposits, how can these stablecoin or RWA tokens qualify? Answer: The GENIUS Act explicitly allows tokenized forms of the following to be included in reserves: (i): USD (ii): Bank deposits (iii): US T-bills (vi): MMF (vii): other similarly liquid, U.S. government–issued assets This means that stablecoin tokens, bond fund tokens, and MMF tokens all count as compliant reserves under the Act. With this in mind, attention should not be limited to USDC or PYUSD alone. Ethena’s USDtb and Frax Finance’s frxUSD are also positioned to expand rapidly in the U.S. market under the GENIUS Act framework.