Latest news with #ScottBessent
Indian Express
2 hours ago
- Business
- Indian Express
US Senate clears GENIUS Act: What the US stablecoin regulation means for the global crypto landscape
The US Senate passed the GENIUS Act Bill on Wednesday with a vote of 68-30 in a major boost for stablecoins — reserve-backed cryptocurrencies that have received an impetus from the Donald Trump administration in America. The next stage for the GENIUS Act will be passage in the US House of Representatives, where members have readied their own version of a stablecoin regulation bill, the STABLE Act. Challenges notwithstanding, the GENIUS Act's passage in the US Senate led to a surge in the price of crypto exchange operator Circle. According to exchange data, Circle Internet Group's share price was up 33.82 per cent at market closing on Wednesday. In pre-market activity, Circle's share price was up another 24.75 per cent to $211.87 apiece at 1:35 pm IST on Friday. US markets were closed on Thursday for the Juneteenth 2025 National Independence Day. Stablecoins, or commodity-backed cryptocurrencies, have witnessed a surge in market capitalisation to $251.7 billion so far in 2025, marking a 22 per cent rise this year, Reuters reported on Wednesday, citing industry data. The passage of the GENIUS ACT Bill in the US Senate is backed by multiple actions taken by the administration of US President Donald Trump — from the announcement of a strategic crypto reserve to the promotion of cryptocurrency sympathiser Paul S Atkins as chairperson of the US markets regulator, the Securities and Exchange Commission. Trump's family interests in cryptocurrency are well known and were mentioned in the Senate discussions after the tabling of the GENIUS Act. What US Treasury Secretary Scott Bessent said on stablecoins In the run-up to the passage of the GENIUS Act bill in the US Senate, US Treasury Secretary Scott Bessent said in a social media post on X that 'stablecoins could grow into a $3.7 trillion market by the end of the decade'. Recent reporting projects that stablecoins could grow into a $3.7 trillion market by the end of the decade. That scenario becomes more likely with passage of the GENIUS Act. A thriving stablecoin ecosystem will drive demand from the private sector for US Treasuries, which back… — Treasury Secretary Scott Bessent (@SecScottBessent) June 17, 2025 In a podcast clip posted on his X page, Bessent said crypto is unlikely to pose a threat to the US dollar stating that 'stablecoins could reinforce dollar supremacy, because stablecoins can end up being one of the largest buyers of US Treasuries… T-bills.' Elaborating on how this may work, Bessent gave the example of how 'all of a sudden if you are using a stablecoin in Nigeria backed by the USD, you don't actually have to have dollars it's on your phone, you can transact (using dollar-backed stablecoins)…' Crypto is not a threat to the dollar. In fact, stablecoins can reinforce dollar supremacy. Digital assets are one of the most important phenomena in the world right now, yet they have been ignored by national governments for far too long. This administration is committed to… — Treasury Secretary Scott Bessent (@SecScottBessent) June 18, 2025 'There's a very good chance that crypto is actually one of the things that locks in dollar supremacy,' Bessent added. GENIUS, STABLE and the race to regulate stablecoins The Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act was passed by the US Senate on Wednesday with a 68-30 vote. The bill sets guardrails for stablecoins with proposals for compliance to ensure prevention of money laundering, full backing of cryptocurrencies by reserves and monthly audits. Last week, Bessent told Senators that the US stablecoin market could surge 8X to $2 trillion, CNBC reported. The GENIUS Act will be tabled next in the US Representatives House which has its own version of the stablecoin regulation bill, the STABLE Act. The Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act places oversight of stablecoins, or reserve backed cryptocurrency under the purview of the Office of the Comptroller the Currency in the US, similar to the GENIUS Act. However, STABLE Act differs from the GENIUS Act in terms of limiting reserve backing requirements to a clutch of assets such as US Treasuries apart from restricting who can issue stablecoins, according to Jeff Reundlet, head of accounting strategy at Cryptio, provider of ledger services for cryptocurrencies. However, the STABLE Act bill may not go far enough, according to a paper written by partners at the law firm Orrick. While the bill aims to create a single regulatory framework for prospective issuers, and excludes payment stablecoins from federal securities laws, it may allow state regulators the power to monitor which stablecoins may be supported by exchanges of licensed intermediaries, wrote Nathaniel Reisenburg, managing associate, and Joseph Perkins and Ignacio Sandoval, partners at Orrick. Trump's crypto interests US President Donald Trump took to his social media platform Truth Social after the US Senate passed the GENIUS Act bill, stating it 'going to make America the UNDISPUTED Leader in Digital Assets — Nobody will do it better, it is pure GENIUS!' 'Digital Assets are the future, and our Nation is going to own it. We are talking about MASSIVE Investment, and Big Innovation,' Trump added. In his podcast interview, Bessent reiterated the Trump administration's commitment to digital assets, while adding that 'because there are so many other things that happen around digital assets… it's one of the most important phenomenons happening around us in the world and the US just ignored it (under the Biden administration).' Trump reversed his stance on crypto assets from his first term, and even released his own namecoin to burnish his credentials as a backer of virtual digital assets. Cryptocurrency backers also contributed generously — around $20 million —into electing what is considered a pro-crypto Congress during the 2024 cycle, CNBC reported. Trump's crypto empire In a recent declaration, Trump disclosed earnings of over $600 million from interests including crypto, golf clubs, and licensing deals apart from other ventures. According to the public disclosure, the US President has earned an estimated $320 million from his $TRUMP memecoin. Trump also pulled in $400 million from the World Liberty Financial platform for cryptocurrencies which is backed by his children. The US President earned $57.35 million from the sale of digital tokens at WLF. He also reportedly held over 15 billion governance tokens in WLF. Other crypto ventures related to Trump include exchange traded funds held via Truth Social's crypto vertical and crypto mining firm American Bitcoin, CNBC reported. Crypto diplomacy and countering de-dollarisation Hacker group Gonjeshke Darande, Persian for 'Predatory Sparrow', with potential links to Israel, wiped off $90 million from Iran's largest crypto exchange Nobitex, Reuters reported, citing a Telegram post by the group. The attack was confirmed in the app by Nobitex, according to the report. Hackers wiped the exchange clean of a range of digital coins from Bitcoin to Ethereum and Dogecoin, said Andrew Fierman, head of national security intelligence at Chainalysis, the newswire reported. Last month, Trump family-linked WLF inked a pact with the Pakistan Crypto Council to boost cryptocurrency adoption in the country, days after it agreed to a ceasefire with India in the aftermath of Operation Sindoor, which was launched by New Delhi to target terror camps across the border in response to a terror attack in Pahalgam, Kashmir which killed 26 Indian tourists. Apart from these instances of cryptocurrencies playing a key role in diplomacy as well as hostilities, digital tokens are also being used to reinforce the US dollar's supremacy, as pointed out by Bessent above. By formalising stablecoin issuance, backed by the dollar, the US is seemingly hedging its bets in a world where key economies are switching to commodities such as gold as they intend to de-risk their holdings from USD-related volatility. The US sanctions on Russia in the aftermath of the declaration of war on Ukraine involved the freezing of Russian foreign exchange worth $300 billion, triggering a risk-off approach among countries across the world. In 2023, Russian President Vladimir Putin gave a call for de-dollarisation, urging the BRICS grouping to promote settlements in national currencies and expand bank-to-bank cooperation. Trump warned the BRICS against such a move which could potentially hurt the dollar. In a statement in February Trump boasted he had warned BRICS nations of desisting from de-dollarisation or face outsized tariffs. The stablecoin route is expected to energise the dollar by promoting the use of cryptocurrency pegged to the greenback. It remains to be seen whether this will be adopted across the globe.
Bloomberg
7 hours ago
- Business
- Bloomberg
Bessent's Top Bank Reform Is Good for Markets
US banks seem likely to get the changes they want to an obscure but important rule known as the supplementary leverage ratio. The leading reform proposal should cut the capital that banks need for this measure and help make the Treasury market more resilient, but not lead to a giveaway of shareholder capital that could undermine their safety. For the financial system, that's a win-and-not-lose outcome. Treasury Secretary Scott Bessent has been pushing for this to be the first major financial reform since he took on the job. The Federal Reserve said on Tuesday that it will discuss the changes next week and hold an open meeting. Two main changes have been under discussion. The first is to take Treasuries out of tallies for the size of bank balance sheets, which would mean banks could lend to the government almost without using any equity. The second is to reduce the amount of capital banks need for their whole balance sheet, which would allow them to run a larger balance sheet for a wider variety of assets. The latter option is now the leading plan, Bloomberg News reported this week.
Yahoo
16 hours ago
- Business
- Yahoo
There was no breakthrough on trade at the G7. Trump's OK with that.
There was no breakthrough on trade at the G7 this week. It isn't bothering President Donald Trump. While expectations for trade agreements were low heading into this week's G7 summit, the confab of world leaders in the Canadian Rockies yielded no apparent progress between the U.S. and major trading partners like the European Union and Japan. The lack of movement has left foreign leaders and domestic businesses on edge with a little less than three weeks until Trump's July 8 deadline for striking trade accords. While trade conversations may continue on the sidelines of the NATO summit next month, G7 was widely seen as the best opportunity for Trump and world leaders to break through deadlocks that have persisted for weeks. But Trump is operating on his own timeline. He insists he can unilaterally set tariffs for any country whenever he pleases, delay them as he desires and use that cudgel to negotiate from a position of strength, even as critics warn his stance threatens global economic uncertainty. "I don't think there's much urgency,' said one person close to the White House, who like others in this story was granted anonymity to speak candidly about the trade talks. "For the president, it doesn't matter. He's fine ending up with tariffs.' Treasury Secretary Scott Bessent, who stayed behind to represent the U.S. at G7 after the president departed early amid escalating conflict in the Middle East, has said it's likely Trump will grant countries an extension so long as they continue to negotiate in 'good faith,' but that has done little to ease fears of U.S. trading partners and businesses who are begging for certainty. The hopes for G7 were always modest. Trump, perhaps, would leave Canada telegraphing positivity about ongoing trade talks, aides and allies said, even as the actual negotiations are facing stumbling blocks, from auto tariffs to the U.S.'s baseline 10 percent levy. They didn't even get that far, with Trump departing the summit after spending just a few hours with his counterparts in a secluded mountain lodge. 'Expectations were obviously high because the chance to interact with the decider-in-chief on trade is rare and valuable,' said Everett Eissenstat, a former Trump trade official. 'I'm sure a lot of leaders were interested in doing that and may be disappointed that the president had been diverted by other matters.' Still, Eissenstat added that he would be 'a little' surprised if the U.S. failed to notch a trade framework with even just one other country by the July 8 deadline, suggesting that the president's top lieutenants will be under significant pressure to do so. 'If you've got a deadline out there, it drives interest among those working to deliver an agreement to the president that he's going to like,' Eissenstat said. 'It's a good incentive to do it.' Juxtaposed against a very real conflict between Israel and Iran, some Trump allies note that the administration's brewing trade war is a crisis of his own making — and one that he has immense power to ratchet up or down. White House aides downplayed the lack of movement on trade out of the G7, acknowledging that principal-level discussions can be helpful but saying that neither the U.S. nor other countries went into Canada thinking trade deals would be hashed out there. Kush Desai, a White House spokesperson, called the discussions in Canada 'productive' and 'substantive.' 'The Administration's trade and economic team continues to work around the clock … to strike more deals that will finally level the playing field for American industries and workers,' Desai said in a statement. Trump during his brief time in Canada repeatedly told reporters that he was pressing for a quick succession of trade deals, expressing optimism that several would come together by July 8. "A lot of them," he said when asked if there were more announcements on deck following his signing of the U.S.-U.K. trade deal. "We're very far down the line with a lot of deals," he said later without providing specifics. But in a series of private meetings with other G7 leaders, Trump appeared to make little progress, with the foreign delegations indicating afterward that much of the details of the negotiations remained up in the air. Trump didn't even discuss tariffs during a one-on-one meeting with German Chancellor Friedrich Merz on Monday, said German officials granted anonymity to discuss the private session, with the two leaders instead spending much of the 20-minute pull-aside talking about the Middle East and other security issues. 'Trump listens, he asks questions, we don't agree on all the answers, but it is a real dialogue. And this dialogue took place here, over several hours over the course of yesterday, including yesterday evening, and that alone is a value in itself,' Merz said in an interview with POLITICO. 'We understand each other better, we exchange arguments and we will also find solutions.' Trump eventually acknowledged as much, saying on Air Force One after abruptly leaving the summit a day early that while there was a 'chance' for a deal with Japan, key sticking points like auto tariffs remained unresolved. As for the European Union, Trump complained hours after a meeting with European Commission President Ursula von der Leyen that the bloc isn't 'offering a fair deal yet,' accusing it instead of being 'formed in order to hurt the United States on trade.' And he reiterated threats to slap levies of his own choosing on any country he feels isn't doing enough to negotiate on trade, like he did with the EU last month. "We're actually finished with every deal if you really think about it," Trump said, indicating that even he felt the discussions were little more than formalities. "All I have to do is say this is what you're going to pay. But, it's nice to be nice." Trump's abrupt departure was a surprise to foreign leaders clamoring to meet with the president. Mexican President Claudia Sheinbaum touted a 'very good' phone call with Trump, in lieu of a meeting that was planned for the confab. The country had hoped to use the face-to-face meeting to finalize a deal to remove U.S. tariffs on steel and aluminum, before Trump left the summit early. Japanese Prime Minister Shigeru Ishiba was muted in his Tuesday assessment of the progress made during a pull-aside with Trump in Canada, telling reporters the two countries remain divided over the issue of the U.S.'s 25 percent tariffs on auto imports. "We've been exploring the possibility of a deal down to the wire,' Ishiba said. 'But there are still points where our views remain divided.' And while European leaders, including Merz, left Canada sounding an optimistic note, trade experts note that the hopeful tenor likely has more to do with the particular friction between the U.S. and the EU — after Trump threatened to slap the bloc with 50 percent tariffs last month. "I don't think there was real progress of any kind,' said one EU official. 'Trump has been made aware of that reality many, many times.' The president did, however, manage to finalize a trade agreement with the U.K., after preliminary details were announced in May. Trump and U.K. Prime Minister Keir Starmer signed the deal in Canada on Tuesday, which will lower tariffs on British autos from 25 percent to 10 percent by the end of June and carve out U.K. aerospace products, like engines and similar aircraft parts, from the U.S.'s 10 percent baseline tariff. Still, even that agreement highlighted the work left to be done. The signed papers, some of which ended up scattered on the ground as Trump tried to display them to reporters gathered at the G7, omitted a key part of the original deal announced last month — keeping steel and aluminum tariffs at 25 percent for now, instead of 0 percent as originally agreed. The one other sign of progress on trade out of the G7 was even less substantive. Trump and Canadian Prime Minister Mark Carney set a 30-day clock for trade negotiations between the two countries, although Canadian officials acknowledged at the summit that the countries have much more work to do before a deal is set. Carney earlier this month committed to meeting the NATO security alliance's current spending target of 2 percent in 2025, addressing a long-standing irritant for the Trump administration. Canada also recently proposed legislation that will give law enforcement new powers on the border, potentially influenced by Trump's focus on illegal migration. 'The defense spending and border bill seem important starts that have them in a friendly mood. We will see,' a Canadian official said. Meanwhile, businesses are clamoring for certainty that will allow them to make forward looking decisions about where to invest and expand their operations. That means Trump can't kick the can down the road on tariffs forever. "I don't think the Trump administration has any idea how challenging this is for businesses,' said one representative of a major industry group that works closely with the administration. Jan Philipp Burgard and Maximilian Lembke contributed to this report.
Yahoo
21 hours ago
- Business
- Yahoo
Who could replace Fed Chair Powell? These are the top contenders
President Donald Trump, unhappy with the Federal Reserve for not cutting interest rates, has called Chairman Jerome Powell a "numbskull," "Mr. Too Late" and referred to him as a "stupid person" before policymakers left interest rates unchanged for the fourth time this year on Wednesday. He has also floated naming a replacement for Powell even though his term is firm through May 2026 as chair, and until Jan. 31, 2028 for the board of governors. During a Wednesday press conference, Powell was asked about the verbal insults and criticism by Trump over interest rates. "From my standpoint, it's not complicated. What everyone on the FOMC wants is a good, solid American economy with a strong labor market and price stability. That's what we want. We think our policy is well positioned right now to deliver that and to be able to respond in a timely way as the data leads us around. The economy's been resilient. And part of that is our stance," he said. He declined to say whether he would remain as a Fed governor if he was not reappointed. FOX Business takes a look at the contenders who could eventually lead the Federal Reserve. Scott Bessent, the current treasury secretary, spent the bulk of his career managing investments, including for billionaire George Soros. Bloomberg News reports he is the frontrunner. In recent congressional testimony, he said that his current role is "the best job" in the nation's capital and that while he is "happy to do what President Trump wants me to do," he "would like to stay in my seat through 2029" to advance the administration's agenda until the end of the president's term. Read On The Fox Business App Fed Keeps Interest Rates Steady, Even Amid Trump Insults Economist and National Economic Council Director Kevin Hasset, who is serving his second stint in Trump world after heading the Council of Economic Advisors during Trump's first term. Hassett has been vocal about pushing the "big beautiful bill" that is part of Trump's tax platform. Will Pressure From Trump And Vance Spur Powell To Cut Interest Rates? As a monetary economist and senior fellow at the Independent Institute, she advised Trump during his first term and has been a critic of the Federal Reserve. Still, she recently acknowledged she is not as high on the list as other potential picks. "I am very honored to be at least mentioned. I won't say the top tier but I am glad to see my name put forward, because I've always been very appreciative and honored that President Trump did nominate me to serve on the board of governors," she said during an interview with FOX Business Network's Charles Payne. Trump Pushes Fed For Jumbo Rate Cut Click Here To Read More On Fox Business Former Fed official Kevin Warsh, who Trump considered for the treasury secretary role before opting to nominate Bessent, is also on the short list for the Fed chair role, according to Bloomberg. Warsh is currently a Shepard Family distinguished visiting fellow in economics at the Hoover Institution. FOX Business Network's Eric Revell contributed to this report. Original article source: Who could replace Fed Chair Powell? These are the top contenders Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
a day ago
- Business
- Business Insider
Crypto Rules Ignite Coinbase Stock Rally — Is It Time to Buy?
Crypto giant Coinbase (COIN) stock surged more than 16% on Wednesday after U.S. lawmakers passed the GENIUS Act — a new bill that brings clear rules for stablecoins. These digital assets, tied to the U.S. dollar, are widely used for fast, low-cost payments across the crypto space. The law removes a major cloud of regulatory uncertainty, and investors responded. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter The sharp rally pushed Coinbase shares to their highest level in months. The stock is now up over 15% in 2025, though it still trades about 13% below its December 2024 peak. The 16% surge, along with clearer rules and signs of long-term growth, has prompted many investors to take another look at Coinbase. Even so, short-term risks remain. Crypto stocks are known for sharp swings, which is why many Wall Street analysts remain cautious. New Law Unlocks $2 Trillion Opportunity The new law also opens the door for a wider range of issuers, including banks, fintech companies, and large retailers, to launch their own stablecoins. U.S. Treasury Secretary Scott Bessent, who now has broad oversight under the bill, believes the stablecoin market could grow nearly eightfold to more than $2 trillion in the coming years. That kind of growth could bring more users and trading activity to platforms like Coinbase. Why This Matters for Coinbase Coinbase is closely involved in the stablecoin market, especially through USDC (USDC), a digital dollar it co-founded with Circle Internet Group (CRCL). Until now, the lack of clear rules made many big firms and investors cautious. With this new legal clarity, that could quickly change. If stablecoin use increases, from retail users or large institutions, Coinbase stands to benefit. More users mean more trading activity, higher fees, and broader demand for the company's services. Coinbase Eyes Stock Tokens In addition, Coinbase is working to enter a new space: tokenized equities — stocks that are turned into digital tokens for faster, cheaper trading. These are stocks turned into digital tokens, which can offer faster settlement, lower costs, and easier access across borders. Coinbase has recently asked the SEC for approval to offer these assets. Barclays analysts believe tokenized stocks could make trading faster and more efficient, while also bringing in new users. For Coinbase, this opens the door to expand beyond crypto and offer a wider range of digital assets. Is COIN Stock a Good Buy? Turning to Wall Street, analysts have a Moderate Buy consensus rating on COIN stock based on 13 Buys, 11 Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average COIN price target of $268.70 per share implies 9% downside potential.
