FYI for some time I have been producing a monthly digest of digital fiat currency (DFC) developments exclusively for the official sector (e.g., central banks, ministries of finance and international financial institution (e.g., the BIS, IMF, OECD, World Bank)) that goes out via email on the first business day of every month. (DFCs include central bank digital currency (CBDC), stablecoins and tokenized deposits.) I’m now widening the distribution to include academics and firms that are active in the DFC space (commercial banks, technology providers, consultants, etc.). If you’re interested in being on the mailing list, please email me at john@kiffmeister.com.
U.S. GENIUS Act Signed Into Law
U.S. President Donald Trump signed into law the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act to establish a regulatory framework for “payment” stablecoin issuers. (A payment stablecoin is a non-interest-paying digital asset that is or is designed to be used as a means of payment or settlement; and the issuer of which is obligated to convert, redeem, or repurchase for a fixed amount of monetary value.) The Act will restrict issuers to subsidiaries of insured depository institutions, federal-qualified nonbank issuers, or state-qualified issuers with stablecoin issuance of $10 billion or less. Issuers must maintain reserves backing the stablecoins on an at least a one-to-one basis. Permitted reserve assets include demand deposits at insured depository institutions, short-term U.S. Treasury securities, money received under Treasury bill-backed repurchase agreements with a maturity of seven days or less, and reverse repurchase agreements with a maturity of seven days or less that are collateralized Treasury securities on an overnight basis. Issuers must also comply with all anti-money laundering regulations. The Act also prioritizes stablecoin holders’ claims in bankruptcy proceedings, and exempts payment stablecoins from securities laws. [Read more at Congress.gov]
House Passes Anti-CBDC Surveillance State Act, Blocks Fed Digital Dollar Work (The Street)
The U.S. House of Representatives passed the CBDC Anti-Surveillance State Act, which would block the Federal Reserve (Fed) from issuing or testing a retail central bank digital currency (CBDC) without Congressional approval. The bill aims to prevent the government from using a digital dollar as a tool for state surveillance and control, but grants protections for open, permissionless, and private dollar-denominated currencies. The bill, introduced by Rep. Tom Emmer, prohibits the Fed from directly or indirectly issuing a CBDC that would be widely available to the general public, and bars the use of a CBDC as a monetary policy tool. The bill is also carefully worded so that Fed testing of so-called “wholesale CBDC” is permitted. This legislation now moves to the Senate. [Read more at Congress.gov]
House Passes Crypto Market Structure Bill (The Hill)
The U.S. House of Representatives passed the Digital Asset Market Clarity Act, a bill aimed at providing regulatory rules for the crypto industry. The bill aims to draw clear lines between oversight by the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). The CFTC becomes the primary regulator for most digital assets classified as “digital commodities,” while the SEC retains authority over digital assets that qualify as securities. The bill now heads to the Senate for further consideration. [Read more at Congress.gov]
Upcoming Speaking Engagements:
The CB+DC Conference (Nassau, Bahamas, September 9-11) is a premier gathering centered on CBDCs, tokenized assets, and stablecoins. It provides a forum for central bankers, commercial bankers, technology innovators, policymakers, and academics to explore the latest advancements in digital currency, engage with experts and peers, and discuss the future of digital currency. [Register here but before you do, email me at john@kiffmeister.com for a 15% discount]
FYI for some time I have been producing a monthly digest of digital fiat currency (DFC) developments exclusively for the official sector (e.g., central banks, ministries of finance and international financial institution (e.g., the BIS, IMF, OECD, World Bank)) that goes out via email on the first business day of every month. (DFCs include central bank digital currency (CBDC), stablecoins and tokenized deposits.) I’m now widening the distribution to include academics and firms that are active in the DFC space (commercial banks, technology providers, consultants, etc.). If you’re interested in being on the mailing list, please email me at john@kiffmeister.com.
