Stablecoin Boom Triggers $6 Trillion Banking Crisis Concerns Amid Regulatory Disputes
- Stable's deposit pre-activation event raised $860M by Nov 7, with $500M cap triggering proportional distribution if exceeded. - Canada's 2025 stablecoin framework mandates 100% reserve backing and $10M+ oversight funding to prevent depegging risks. - U.S. banks warn $6T deposit outflows could destabilize banking if interest-bearing stablecoins are permitted, clashing with crypto firms like Coinbase . - Regulatory tensions highlight global challenges balancing stablecoin innovation with financial stabilit
Blockchain records indicate that by November 7, Stable's second round of its deposit pre-activation initiative had raised over $860 million, as detailed in a
The swift rise in participation highlights the growing appetite for stablecoins, now a vital part of the digital asset landscape. This momentum, however, has also attracted the attention of regulators. Canada’s 2025 federal budget unveiled
At the same time, regulatory debates are intensifying in the United States. The American Bankers Association (ABA) and 52 state banking associations have called on the Treasury Department to enforce the GENIUS Act’s prohibition on stablecoin interest, cautioning that easing this restriction could threaten the stability of the banking sector, according to
This ongoing discussion illustrates the broader struggle to balance financial innovation with effective oversight. While Canada’s approach focuses on reserves and security, the U.S. debate exposes the friction between crypto companies and established banks over regulating interest-bearing stablecoins. The GENIUS Act, passed in July 2025, seeks to build confidence in stablecoins through reserve mandates and audits, but its implementation—anticipated by late 2026—remains contentious.
With stablecoins now facilitating 30% of all crypto transactions worldwide, both regulators and industry leaders are navigating a rapidly evolving environment. Canada’s forward-looking stance and the regulatory disputes in the U.S. mark a critical juncture for the industry, as the direction of oversight will play a decisive role in shaping the future of digital finance.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
XRP News Today: BlackRock's Investment in XRP Encounters Regulatory Hurdles While Trillions Remain on Hold
- BlackRock's Maxwell Stein highlighted XRP Ledger's role in tokenizing $trillions of real-world assets, partnering with Securitize to boost blockchain infrastructure. - Ripple's $500M funding at $40B valuation and XRP's ISO 20022 compliance intensify ETF speculation amid regulatory uncertainty over SEC's stance. - BlackRock faces scrutiny after a $500M fraud scandal at HPS, raising doubts about its crypto credibility despite XRP's Mastercard/WebBank integrations. - Industry splits on XRP's potential: Blac
Bitcoin Plummets Unexpectedly: Has It Hit the Floor or Is a Larger Downturn Ahead?
- Bitcoin fell 15% in August 2025 amid Fed policy shifts, China's crypto ban, and ETF outflows, testing its macro asset status. - The Fed's delayed rate cuts and inflation ambiguity created market uncertainty, while China's ownership ban disrupted liquidity and global demand. - On-chain data shows 375,000 BTC accumulation and a 1.8 MVRV ratio, suggesting structural resilience despite regulatory shocks. - ETF outflows ($291M total) reflect investor caution over inflation risks and regulatory gaps, but could
Bitget Connects Web2 and Web3 by Offering Zero-Fee Trades and Up to 50x Leverage on AI-DeFi Trading Pairs
- Bitget launched 50x-leveraged USDT-margined perpetual contracts for UAI and FOLKS, alongside automated trading bots to boost algorithmic accessibility. - The zero-fee U.S. stock token campaign and Kite (KITE) listing aim to bridge Web2/Web3 by integrating traditional assets with blockchain infrastructure. - With 120M+ users, Bitget's UEX model combines centralized efficiency with tokenized finance, targeting AI/DeFi growth through macroeconomic and onchain exposure.
Bitcoin News Update: Block's Revenue Falls Short Despite Positive Outlook
- Block's Q3 earnings and revenue missed estimates, causing a 12% post-market stock drop. - Square's GPV grew 12% YoY, and Cash App's gross profit per user rose 25% to $94.16. - The company raised 2025 gross profit guidance to $10.24B but faces margin durability concerns. - Bitcoin initiatives, including $2B in Q3 revenue, face regulatory scrutiny and market volatility. - Analysts highlight weak profit flow-through and intensifying peer-to-peer payment competition.
Trending news
MoreCrypto prices
More
