JUST AFTER THE GENIUS BILL WAS PASSED, THE BANK OF AMERICA PLANNED TO ISSUE STABLECOINS
Original source: cryptoslate
Compilation: Blockchain Knight
Bank of America CEO Brian Moynihan confirmed that the bank plans to issue a stablecoin pegged to the U.S. dollar and is working with other industry players on in-house development, as reported by Reuters on June 11.
However, Moynihan added that any potential issuance progress will depend on upcoming federal regulations. He also told investors that while demand remains uncertain, banks "must be prepared".
He added that US lawmakers are discussing a bill that "will allow us to determine whether there is a real business opportunity" and that would establish uniform requirements for reserve quality, redemption and disclosure.
The rhetoric suggests that the second-largest U.S. bank intends to keep pace with its peers in exploring tokenized deposits, but will only formally invest once a clear regulatory framework is in place.
On the other side of the Atlantic, Société Générale's FORGE division launched USD CoinVertible, a USD token natively issued on the Ethereum and Solana blockchains, on June 10.
The product is the French bank's second stablecoin after the launch of the euro version in 2023 and is compliant with the EU's Markets in Crypto Assets (MiCA) framework. SG-FORGE HAS APPOINTED BANK OF NY NY MELLON AS RESERVE CUSTODIAN AND WILL PUBLISH COLLATERAL DETAILS ON A DAILY BASIS.
Trading through multiple brokers is scheduled to begin in early July, enabling a 24-hour exchange between the US dollar, the euro and the token. Chief executive officer Jean-Marc Stenger said client demand for round-the-clock settlement made the USD instrument an "obvious next step".
While these stablecoins were developing, the Senate voted 68-30 on June 11 to start a cloture process on the GENIUS Act, closing the debate and beginning a 30-hour countdown to the final vote, which was passed by a simple majority.
Majority Leader John Thune immediately set in motion the post-cloture timer. At the same time, senators are ready to debate an alternative bill drafted by Senator Bill Hagerty, which removes previously proposed provisions prohibiting in-kind redemptions and clarifies the regulation of non-bank issuers.
After an earlier failed attempt at cloture, the Democrats demanded these modifications.
The GENIUS Act would require every payment stablecoin to be backed 1:1 with high-quality liquid assets, primarily short-term U.S. Treasuries or insured deposits, and separate reserves from working funds.
If the Senate adopts Senator Bill Hagerty's amendment and passes the bill, the House may not need to convene a consultative committee to vote on the text, which could expedite the enactment of the bill.