With Congress just passing the federal budget, lawmakers will have an opportunity to tackle long-term financial challenges outside of crisis mode. One such challenge—and opportunity—is the rise of stablecoins: privately issued digital tokens pegged to fiat currencies like the U.S. dollar. Stablecoins have rapidly grown into a hundreds-of-billions market, facilitating billions in transactions, but they’ve lacked a comprehensive U.S. regulatory framework​. Fortunately, Washington is signaling new openness to digital assets—evidenced by President Trump announcing the establishment of a strategic digital asset reserve for the nation​. Creating the requisite clarity will unlock a new era of competition and innovation among banks.

Stablecoins are a strategic extension of U.S. monetary influence. Around 99% of stablecoin volume today is tied to the U.S. dollar, exporting dollar utility onto international, decentralized blockchain networks. A stablecoin market with the right guardrails can strengthen the U.S. dollar’s dominance in global finance​. If people around the world can easily hold and transact in tokenized dollars, the dollar remains the go-to currency even in a digitizing economy. Recent congressional hearings echo this point—up to $5 trillion in assets could move into stablecoins and digital money by 2030, up from roughly $200 billion now​. If the U.S. fails to act, it risks “becoming the rust belt of the financial industry,” as one fintech CEO warned​. 

Other jurisdictions aren’t standing still: Europe, the U.K., Japan, Singapore, and the UAE are developing stablecoin frameworks​. Some of these could even allow new dollar-pegged tokens issued offshore​—potentially eroding U.S. oversight. In short, America must lead on stablecoins or get pressured by Europe’s Digital Euro and other central bank digital currencies (CBDCs) that threaten both the private banking ecosystem and individual sovereignty in their strictest form. My research, for example, shows that CBDCs to date have not had any positive effects on growing GDP or reducing inflation, but have had negative effects on individuals’ financial well-being.

Ideally, various regulated institutions—banks, trust companies, fintech startups—could issue “tokenized dollars” under a common set of rules. Before the 1900s, state governments had the primary authority over banking. While that led to fragmentation and problems, with the right federal architecture, blockchain allows banks to offer differentiated products and a version of what existed pre-1900—their own type of stablecoin that differs in security, yield, and/or other amenities—while still keeping the value pegged to the dollar. More broadly, there is a large body of academic research showing how stablecoins drive down transaction costs, speed up settlement times, and broaden financial inclusion through new services. 

In absence of federal action, we risk a patchwork of state-by-state rules or even de facto regulation by enforcement, which creates uncertainty for entrepreneurs and consumers alike. The Stablecoin Tethering and Bank Licensing Enforcement (STABLE) Act was introduced in the House in 2020, requiring any company issuing a stablecoin to obtain a bank charter and abide by bank regulations, including approval from the Federal Reserve and FDIC before launching a stablecoin, and to hold FDIC insurance or Federal Reserve deposits as reserves, making stablecoin issuers regulated like banks to protect consumers and the monetary system. 

However, as House Financial Services Committee Chairman French Hill has said, the goal should be to modernize payments and promote financial access without government overreach​. Notably, Hill contrasted private-sector stablecoin innovation with the alternative “competing vision” of a government-run digital dollar (central bank digital currency) that could crowd out private innovation​. And, the STABLE Act could be too draconian, penalizing non-bank entities. To that end, the recent bipartisan effort in the Senate—the Guiding and Establishing National Innovation for U.S. Stablecoins Act of 2025 (GENIUS Act)—has gained momentum.

In practice, the GENUIS Act could allow a regulated fintech or trust company to issue a dollar stablecoin under state supervision, so long as it complies with stringent requirements mirroring federal bank-like rules on liquidity and risk. This kind of flexibility, paired with robust standards, can prevent market fragmentation by bringing all credible stablecoin issuers under a regulatory “big tent.” It would also prevent any single point of failure: If one issuer falters, others operating under the same framework can pick up the slack, keeping the system stable.

Critics often voice concerns that digital currencies could enable illicit activity. But in reality, blockchain technology offers more transparency, not less, when properly leveraged. Every transaction on a public blockchain is recorded on an immutable ledger. Law enforcement has successfully traced and busted criminal networks by following the on-chain trail—something much harder to do with cash stuffed in duffel bags. In fact, blockchain’s decentralized ledger offers the potential for even greater transparency, security, and efficiency​. 

Following the momentum from the White House, Congress has a running start on crafting rules that bring stability and clarity to this market now that the budget has passed. Lawmakers should refine and pass a comprehensive stablecoin bill that incorporates the best of both approaches—the prudential rigor of the bank-centric model and the innovation-friendly flexibility of a dual license system. Done right, stablecoin legislation will reinforce the dollar’s role as the bedrock of global finance in the digital age, unlock new fintech innovation and competition domestically, and enhance financial integrity.

The opinions expressed in Fortune.com commentary pieces are solely the views of their authors and do not necessarily reflect the opinions and beliefs of Fortune.

Read more:

• Elon Musk wants the U.S. Treasury to be on a blockchain. That’s a terrible idea—take it from a big proponent of the technology
• Trump’s crypto reserve is being panned by crypto leaders. Here’s why it’s actually a good idea

This story was originally featured on Fortune.com

Hundreds of people lined up Friday morning at three sites in New York City, some arriving more than an hour early, for the opportunity to snag one of the nation’s hottest commodities: a dozen free eggs.

People were bundled up against the windy cold as they stood outside a Harlem restaurant, patiently waiting to be handed a carton. Less than 10 minutes later, the 100 cartons were gone, leaving many empty-handed.

“I heard from the news that they will be giving around, like, 1,500 eggs, or something like that. OK? And I just came because I needed some eggs, and then I’m waiting here in the line, and I don’t see anything,” said Jackeline Tejava, who was in a line that stretched around the block. “They say that the eggs are gone, but it hasn’t been not even more than 20 people, so I don’t know what happened.”

Egg prices hit a record high last month as the U.S. contends with a bird flu outbreak, which has forced poultry farms to slaughter more than 168 million birds since 2022.

Trying to find eggs on grocery store shelves in New York City can be hit or miss. When they are in stock, they can be pricey.

Friday’s giveaway was organized by FarmerJawn, a 128-acre (52-hectare) Pennsylvania farm that’s focused on providing organic food to underserved communities. FarmerJawn held other egg giveaways Friday in Brooklyn and Queens. The group also handed out free cartons in New York last month.

“We’re doing this egg giveaway because, as food producers, we believe it’s our responsibility to support the communities that support us,” the group said in a written statement. It partnered with a local butchery and a upstate New York farm to organize Friday’s events.

“Food is medicine, and everyone – especially the often-forgotten middle class – deserves access to it,” Farmerjawn said.

Other organizations, including churches, have recently held egg giveaways in New York and elsewhere around the country, including Las Vegas, Chicago, Philadelphia and Richland County, South Carolina.

The U.S. Department of Agriculture expects egg prices to rise 41% this year over last year’s average of $3.17 per dozen. A carton of eggs in New York City can often run twice or three times that amount, depending on the store.

Marion Johnson, who waited more than two hours at the Harlem giveaway but didn’t get a free carton, said she can’t afford eggs.

“They’re so expensive,” she said. “This is not fair. … They know everybody gonna be on line like this.”

This story was originally featured on Fortune.com

Source link

About 500 staffers at the Securities & Exchange Commission have agreed to leave the agency in response to its $50,000 buyout and deferred-resignation offers, according to people with direct knowledge of the matter.

The divisions of enforcement, exams and the office of the general counsel will experience some of the more significant departures, the people said, asking not to be identified discussing non-public information. The number may climb even higher as additional people accept the buyout ahead of Friday’s deadline for the $50,000 incentive. Some of the departures may not take place until later this year. 

The total represents about 10% of the roughly 5,000 employees at the agency. Some former staff have expressed concern that the agency will be unable to handle a financial crisis, should one arise, given the talent drain.

To qualify for the buyout offer, employees must have been on the agency’s payroll before Jan. 24. They must voluntarily leave through resignation, transfer to another agency or immediate retirement. If they accept a voluntary separation agreement and return to the SEC within five years, they must pay back the incentive in full.

An SEC spokeswoman declined to comment on the departures.

More cost cuts are on the agency’s agenda. The SEC plans to eliminate the leases for its Los Angeles and Philadelphia offices. The General Services Administration has also explored ending the Chicago office’s lease, though that could come with a significant financial penalty, Bloomberg has reported.

Regional offices oversee a hefty portion of exams and enforcement work. The most-senior positions at regional offices have also been cut, though the individuals in those roles aren’t being forced out.

The SEC cuts have been criticized as inconsistent with the administration’s mission to reduce federal-government costs.

“The Trump administration may claim that all agencies should be reduced in size by a roughly similar margin, in effect sharing proportionate reductions,” Columbia Law School professors John Coates, John Coffee Jr., James Cox, Merritt Fox and Joel Seligman wrote in a blog post last week. “But this ignores one extraordinary fact about the SEC: It consistently has generated more in fees than in operating expenses.”

Reuters reported earlier Friday that hundreds would leave.

This story was originally featured on Fortune.com

Source link