Latest news with #BankSecrecyAct
Arabian Post
6 days ago
- Business
- Arabian Post
GENIUS Act Paves the Way for Regulated Stablecoins
Arabian Post Staff -Dubai A landmark federal framework for stablecoins became law on 18 July 2025, when President Donald Trump signed the Guiding and Establishing National Innovation for U. S. Stablecoins Act. The legislation mandates that stablecoins — digital currencies pegged one‑to‑one to the U. S. dollar or short‑term Treasury bills — must be fully backed by liquid reserves, publicly disclose holdings monthly, and comply with anti‑money laundering and consumer protection rules. The Act clears a path for both banks and approved non‑bank entities to issue payment stablecoins under a dual licensing system, encompassing federal and state oversight. It also creates a formal category for such assets, offering legal clarity that had eluded stablecoin issuers until now. ADVERTISEMENT Despite bipartisan support in Congress — with Senate approval on 17 June and House passage on 17 July — the new law has drawn criticism. Some lawmakers and experts argue it falls short on stricter anti‑money laundering measures and allows big tech firms to issue stablecoins with fewer regulatory hurdles than traditional banks. Trump lauded the Act during the White House signing ceremony, calling it 'a hell of an act' and asserting it will solidify American crypto leadership and support the dollar's global primacy. He noted the GENIUS Act 'creates a clear and simple regulatory framework' capable of unleashing innovation and enhancing payment systems. Stakeholders across finance and fintech are re-evaluating their strategies. Traditional banks are preparing pilot programmes and exploring partnerships to issue or facilitate stablecoins, while crypto firms like Circle and Coinbase, which have backed U. S. stablecoin issuance earlier, have seen share prices rise following the law's enactment. In parallel, the law aims to channel demand into U. S. Treasuries, reinforcing the dollar's global role. Treasury Secretary Scott Bessent highlighted that requiring asset backing in government debt would deepen Treasury markets. Financial institutions are bracing for increased reserve purchases and adjustments in asset allocation strategies. The Act introduces rigorous governance: stablecoin issuers must implement reserve audits, adhere to marketing restrictions—such as avoiding government endorsement claims—and prioritise redeeming customer claims ahead of other creditors in insolvency scenarios. It also extends anti‑money laundering obligations under the Bank Secrecy Act, granting treasury authorities power to freeze illicit funds. Though heralded as a milestone, implementation remains complex. Regulators are expected to issue detailed rules within a year, and the Act's 'effective date' is projected for late 2026, contingent on final regulatory actions or an 18‑month grace period. Global central banks and fintech players are watching closely. Some expect U. S. leadership in regulated digital currencies could spur innovation overseas, while others warn that insufficient guardrails may encourage regulatory arbitrage. Foreign issuers may enter the U. S. market if they meet rigorous Treasury approval, including comparable home‑jurisdiction oversight and U. S.-based reserve management. Market response has been immediate: global crypto valuations have surged past $4 trillion, led by strong gains in bitcoin and ether amidst expectations of broader stablecoin integration. Industry experts suggest stablecoins may soon become mainstream payment tools, with major retailers and tech giants like Google, Uber and Apple exploring adoption. However, voices of caution persist. Critics say the framework could permit big tech to bypass stricter banking regulations, heightening systemic risks, and that consumer safeguards remain inadequate. Transparency International warned the law might provide loopholes exploitable by criminals or hostile regimes. As rule‑making proceeds and industry adapts, the GENIUS Act marks a fundamental shift in U. S. crypto policy — ushering stablecoins from regulatory limbo into a legalised, structured, but contested future.
Arabian Post
26-06-2025
- Business
- Arabian Post
Tether Under Fire as GENIUS Act Tightens Stablecoin Rules
U.S. lawmakers have advanced the GENIUS Act, a federal bill setting strict requirements for stablecoin issuers that could significantly challenge Tether's dominance. The legislation mandates full backing with cash or U.S. Treasuries, monthly audits by registered firms, transparency of reserves, anti-money laundering safeguards and U.S. registration for issuers with over $10 billion in circulation. Circle's USDC stands to gain, while Tether's model faces serious scrutiny if it intends to access U.S. markets. Tether currently holds approximately $155 billion in USDT tokens, backed in part by volatile assets such as Bitcoin and gold—as well as commercial paper and loans. It discloses reserves via quarterly attestations, though it has never undergone a full independent audit, despite promises since 2017. In contrast, the GENIUS Act requires liquidity in U.S.-based financial institutions and audited transparency certified by company executives, holding them personally liable. Experts warn that Tether now faces a strategic choice: overhaul its reserve holdings, comply with audits and potentially register under U.S. regulations—or abandon ambitions in the U.S. and pivot towards offshore markets. After relocating its corporate headquarters to El Salvador, Tether appears poised to leverage regulatory gaps via reciprocal agreements—though critics argue this is unlikely to satisfy U.S. authorities. ADVERTISEMENT Steve Gannon, a lawyer specialising in digital assets, suggested that Tether is unlikely to enter U.S. markets until regulations are finalised, as adaptation would require extensive investment in compliance infrastructure. CoinDesk analysis emphasises that foreign issuers could qualify only if regulated by approved jurisdictions and maintain U.S.-based reserves, with oversight from the Office of the Comptroller of the Currency. By contrast, Circle is well-positioned. USDC is fully backed by cash and Treasury bills, audited monthly and issued by a U.S.-based firm. Following the Senate's approval of the GENIUS Act, Circle's share price surged, reflecting investor confidence in its compliance-readiness. The GENIUS Act also seeks to tighten anti-money laundering and counter-terror financing protocols by integrating stablecoins under the Bank Secrecy Act, with monthly certifications and criminal penalties for lapses. It includes explicit restrictions on stablecoin issuance by lawmakers and their families. Critics have flagged potential loopholes, warning that offshore entities like Tether could continue servicing U.S. customers through decentralised exchanges—sidestepping rigorous Elm Salvador or other offshore jurisdictions. The Senate bill also bans stablecoins from offering interest, limiting yield-bearing models favoured by some existing issuers. On financial markets, increased demand from compliant issuers is expected to boost U.S. Treasury purchases. Currently, around $200 billion of assets backing stablecoins are held in Treasuries and repos. Even a modest uptick in USDC issuance could drive multibillion-dollar incremental purchases. A recent study found Tether holds nearly 1.6% of all U.S. Treasury bills, contributing to yield compression equivalent to tens of billions in annual government savings. Yet uncertainty remains. The GENIUS Act must clear the House and be signed into law, with possible amendments—especially regarding foreign issuance pressures and scope of AML provisions. Senate Banking Committee Democrats have warned of national security risks if the bill doesn't close offshore loopholes, fearing illicit finance actors could exploit weakly regulated channels. Tether's CEO Paolo Ardoino has signalled exploration of a U.S.-compliant stablecoin variant, which would align reserves and governance with federal standards. However, no official timeline has been provided. Stablecoin proponents say the GENIUS Act brings much‑needed clarity, potentially paving the way for mainstream adoption and institutional participation. Yet critics fear regulatory shortcuts may invite private stablecoins into a system without equal access for central bank digital currencies. The stakes are high. Tether's strategic response will shape the competitive landscape. Will it meet U.S. standards or cede space to compliant rivals like Circle? The passage of the GENIUS Act may mark a turning point in crypto policy and redefine stablecoin leadership.
Business Wire
25-06-2025
- Business
- Business Wire
GiveCard Collaborates with Visa to Modernize Disbursements in the Public Sector
NEW YORK--(BUSINESS WIRE)-- GiveCard, a platform purpose-built to help nonprofits and government agencies disburse and manage funds over prepaid funds, today announced a strategic collaboration with Visa. GiveCard will be issuing virtual and physical prepaid cards to recipients, distributing them directly to recipients through various U.S. government agencies. 'GiveCard has built a simple and intuitive platform that helps eliminate the cost, time and complexity associated with disbursement of funds' - Rick Malcolm, Head of Visa Government Solutions North America. Together, the two organizations are helping the public sector transition into the cashless era with infrastructure that enables secure ledger transfers at scale - through prepaid debit cards, as well as GiveCard-powered real-time bank transfers and automated workflows that reduce administrative overhead. As the federal government accelerates efforts to modernize payments – including a recent executive order to phase out paper checks by September 30, 2025 – agencies are working to deliver digital-first, audit-ready payment systems. The GiveCard–Visa collaboration offers a turnkey solution: a modern infrastructure that fuses GiveCard's advanced disbursement technology with Visa's prepaid debit cards. 'The world is going cashless, and government and nonprofit systems have been working to modernize their payment systems to keep up,' said Lurein Perera, Co-Founder and CEO of GiveCard. 'We built GiveCard to close that gap: offering a platform that empowers public-sector organizations to move money quickly, compliantly, and without requiring a 20-person operations team.' GiveCard's infrastructure includes high-limit virtual and physical prepaid debit cards, ACH/RTP/FedNow bank transfers, and a full-service cardholder support system through a platform and live interpreter network that operates in 25+ languages. It's all backed by no-code dashboards, APIs, and customizable workflows so agencies can automate disbursement logic, like eligibility checks or attendance triggers, without building from scratch or hiring additional staff. 'GiveCard has built a simple and intuitive platform that helps eliminate the cost, time and complexity associated with disbursement of funds,' said Rick Malcolm, Head of Visa Government Solutions North America. 'Their ability to integrate into government disbursement systems to manage complex and high-volume payments has made them an early success in the public sector, and we look forward to what we can accomplish together for our customers and stakeholders in the government sector.' GiveCard is purpose-built for disbursement: its infrastructure was designed to move money into people's hands with minimal friction, especially for unbanked or underbanked individuals. With no SSN or ID required, the system supports programs like housing aid, disaster relief, and research incentives while maintaining full anti-money laundering (AML) and Bank Secrecy Act (BSA) compliance. The new collaboration will enable state and local governments, school districts, and nonprofits to rapidly implement and scale digital disbursement programs with Visa-backed prepaid cards and secure digital rails. About GiveCard GiveCard is revolutionizing how organizations move money to people. Our specialized prepaid debit card platform and disbursement management infrastructure make it simple and efficient to launch, scale, and measure the impact of fund distribution initiatives. From nonprofit organizations and government agencies running cash assistance programs to research institutions and school systems, GiveCard enables instant delivery of funds to individuals—no bank account required. Founded in 2018, GiveCard has facilitated the disbursement of millions of dollars to hundreds of thousands of individuals across the U.S. Learn more at
Miami Herald
25-06-2025
- Business
- Miami Herald
Stablecoin bill creates protections for crypto users, critics say it's not enough
June 25 (UPI) -- After passing the Senate via cloture, the Guiding and Establishing National Innovation for U.S. Stablecoins Act faces a vote in the U.S. House in the coming weeks. Proponents of the bill establishing regulations for payments with stablecoins say it is the first step in establishing protections for businesses and consumers while opponents say it lacks important guardrails. Stablecoin, a form of cryptocurrency that is backed by a more stable asset, such as a currency like the U.S. dollar or a commodity like gold, is designed to maintain a stable value. The GENIUS Act creates legal guidelines for licensing stablecoin issuers and oversight mechanisms to regulate banks and other financial institutions dealing in stablecoins. Sen. Bill Hagerty, R-Tenn., sponsored the bill in the Senate. He said on the Senate floor that passing the act will improve the speed and efficiency of payment with stablecoins around the globe while creating safeguards to deter illicit activity. "Stablecoins also advance a vital national interest by driving demand for U.S. Treasuries. A recent report forecasts that with a well-crafted U.S. regulatory framework, stablecoin issuers could become one of the top holders of U.S. Treasuries by the end of this decade -- if not sooner," Hagerty said. "This would strengthen our fiscal position and cement the dollar's status as the world's reserve currency. If we fail to act now, not only will these benefits slip away. Without a regulatory framework, stablecoin innovation will proliferate overseas -- not in America." Christian Catalini, founder of the Massachusetts Institute of Technology's Cryptoeconomics Lab, told UPI that the GENIUS Act will lower the cost of making payments with stablecoin internationally. "It is much needed legislation that will unlock a safer and more scalable stablecoin ecosystem," Catalini said. "It will lead to entry by many more issues, increasing competition among stablecoins." Beginning three years after the GENIUS Act is enacted, it will be illegal to offer or sell a payment stablecoin to anyone in the United States without a permit. It will also be illegal for foreign service providers to issue or make a stablecoin available in the United States without complying with U.S. guidelines. This includes demonstrating compliant technological capabilities. Those who violate the GENIUS Act would be subject to fines of up to $1 million and five years in prison for each violation. The bill dictates the requirements for becoming a stablecoin issuer. Among these requirements, the issuer must have the capital to support the stablecoins they are issuing. Issuers will be required to submit reports upon request detailing their financial condition, their system for monitoring and controlling financial and operating risks and compliance with the Bank Secrecy Act and other laws and sanctions implemented by the Secretary of the Treasury. Nonbank entities, such as fintech companies, will be able to apply for licensing to issue stablecoins. Fifty Republicans and 18 Democrats voted to end debate over the bill in the Senate, allowing it to advance. Catalini said it garnered some bipartisan support due to the significance of stablecoin. "The technology is likely to be ultimately as impactful as the Internet," he said. "Countries that will create the best environment for it will lead for decades to come." Sen. Elizabeth Warren, D-Mass., voted against ending debate, arguing that the bill does not do enough to stop government officials, such as President Donald Trump, from engaging in corruption with the use of cryptocurrency. Trump and first lady Melania Trump each launched new meme coins hours before Inauguration Day. Sen. Mark Warner, D-Va., was among the Democrats to support the bill. In a statement, he said concerns remain about how Trump and his family have used crypto technologies to "evade scrutiny." However, he does not believe this should deter from passing the regulations in the GENIUS Act. "We must remain vigilant in exposing and stopping these abuses," Warner said. "But our outrage over that corruption cannot prevent us from building a foundation for responsible innovation in this space. If we don't lead, others will, and not in ways that reflect our interests or democratic values." Independent Community Bankers of America expressed concerns with the GENIUS Act in a letter to the Senate last month. Chief among those concerns was language that it believed would allow non-bank issuers to obtain Federal Reserve Master Accounts. The current version of the bill has addressed that language, according to the ICBA. "On behalf of the nation's community bankers, ICBA appreciates the work by the Senate to address concerns raised by ICBA with the GENIUS Act throughout the legislative process in order to provide regulatory clarity while protecting against the negative economic consequences that would result from community bank disintermediation," Rebeca Romero Rainey, ICBA president and CEO, said in a statement. Catalini said that he expects more regulations to follow due to Trump's support of cryptocurrency. "We need new rules for market infrastructure, tax treatment and more," he said. "No bill is perfect but the GENIUS Act is an important first step in ensuring consumers and businesses are appropriately protected when paying for holding a balance in stablecoin." Sen. Josh Hawley, R-Mo., and Sen. Rand Paul, R-Ky., voted against ending debate on the bill. They did not respond to requests for comment. Copyright 2025 UPI News Corporation. All Rights Reserved.
Business Wire
17-06-2025
- Business
- Business Wire
Erica Brennan Joins FS Vector as Managing Principal on Licensing Team
WASHINGTON--(BUSINESS WIRE)--FS Vector ('FSV'), a leading strategic consulting firm for companies that are innovating in financial services, is announcing the addition of Erica Brennan as Managing Principal on the licensing team. In her role, Brennan will leverage her fintech and payments background to guide FS Vector's clients through complex licensing, product, and regulatory requirements. "Erica brings a wealth of experience in licensing and regulatory compliance to FSV, and we are confident she will be an incredibly valuable asset to our growing team,' said John Beccia, CEO of FSV. 'Her proficiency working with both emerging and established players in the fintech and payments sectors positions her perfectly to support our clients' efforts to obtain the necessary licenses and ensure full regulatory compliance throughout the process. We're excited to bring Erica on board to further strengthen our capabilities and continue delivering strategic, informed guidance to our clients.' Brennan has more than two decades of experience working at the intersection of law, regulation, technology, and finance. She most recently served as Chief Counsel, Transactions at Circle Internet Financial, LLC, where she supported stablecoin, crypto, and blockchain initiatives and worked closely with product teams to navigate emerging regulatory frameworks. Prior to this, Brennan held senior roles at Linden Lab, Change Healthcare, and Paul Hastings LLP, where she gained experience advising clients on state and federal payments regulations, including anti-money laundering (AML) and Bank Secrecy Act (BSA) compliance. "FS Vector's Licensing team plays a vital role in helping clients launch and scale innovative and compliant operations," Brennan said. 'I look forward to working with clients as they structure products and partnerships and pursue the licenses and charters to operate in a highly regulated environment. By ensuring our clients meet both state and federal requirements, we can help them navigate the challenges related to growth while staying ahead of the evolving regulatory landscape.' Brennan's addition further solidifies the FS Vector Licensing team as the market leader for state licensing and product and compliance advisory services, as well as technical innovation with its licensing platform, Approved. FS Vector also recently welcomed Jackson Mueller to its Government Relations and Public Policy team, extending FS Vector's reputation as a powerhouse of diverse industry leaders delivering exceptional insights and guidance to its clients. For more information on FSV and its offerings, please visit About FS Vector FS Vector (FSV) helps clients transform financial services and navigate complex regulatory environments. Its integrated approach combines advisory services, tech-enabled operational delivery, government relations and policy expertise. FSVs embedded advisory experts serve as an extension of clients' teams, providing practical guidance on the most interesting and timely topics facing the industry. FSV's network spans hundreds of financial services clients and partners, including fintechs, banks and other financial institutions, law firms, regtech providers, legislators, and regulators. .
