A bipartisan group of US senators has jointly written to the Treasury Secretary, requesting that the upcoming GENIUS stablecoin act framework explicitly preserve states’ regulatory authority over stablecoin issuers. The senators warned that excessive federal concentration of regulatory power could stifle financial innovation at the state level.

Event Overview

According to CoinDesk, the bipartisan letter was initiated by members of the Senate Banking Committee and received support from both Republican and Democratic lawmakers. The letter emphasizes that states have a long history and extensive experience in financial services regulation, and the federal government should not completely replace state-level oversight in the stablecoin domain.

The GENIUS Act aims to establish a federal regulatory framework for dollar-backed stablecoins, providing legal certainty for the crypto industry. However, provisions regarding federal preemption have raised concerns among state regulators, who argue this could create a “regulatory vacuum.”

Editor: GoodInfo Global News Team

JPMorgan has issued a warning that the legislative window for the US crypto market structure bill (Clarity Act) is narrowing. The bill still faces multiple legislative hurdles, with stablecoin yield distribution emerging as a key point of contention that could affect its final passage.

Event Details

According to CoinDesk, JPMorgan said in its latest market analysis report that the Clarity Act faces growing time pressure in Congress. The bill aims to establish a clear regulatory framework for the US crypto asset market, but several critical disagreements remain unresolved.

The report specifically highlighted that the stablecoin yield issue has become a major obstacle in the legislative process. Different political factions hold fundamentally divergent views on whether stablecoin issuers should be allowed to provide yields to holders. Proponents argue that allowing yield distribution would help attract institutional capital into the crypto market, while opponents worry this could trigger systemic financial risks.

Additionally, the bill faces disputes over regulatory jurisdiction — the power struggle between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) remains unresolved.

Perspective and Analysis

The legislative process of the crypto market structure bill actually reflects deep structural contradictions in the US financial regulatory system when facing emerging digital assets. The traditional financial regulatory framework is built on a classification system accumulated over decades — securities, commodities, and currencies each have their own regulators. However, the characteristics of crypto assets often cross these traditional classification boundaries, making regulatory jurisdiction a complex issue.

From an industry development perspective, a clear regulatory framework is a key prerequisite for the crypto market to go mainstream. Currently, the US crypto industry operates in an environment lacking clear regulations, leaving companies facing compliance uncertainty and institutional investors adopting a wait-and-see approach due to regulatory risks. JPMorgan’s attention to crypto regulation, as a traditional financial giant, is itself an important signal — indicating that mainstream financial institutions have already incorporated crypto assets into their core business considerations.

The stablecoin yield controversy touches on deeper philosophical divides in finance. Allowing stablecoins to generate yields means positioning them as investment vehicles rather than mere payment instruments. This shift in positioning could reshape the entire crypto financial ecosystem, but it could also introduce new systemic risks — particularly in extreme market conditions, where yield-driven redemption rushes could trigger liquidity crises.

Multiple Perspectives

Industry supporters argue that a clear regulatory framework would unlock trillions of dollars in institutional capital flowing into the crypto market. The Crypto Council stated: "The US needs to show leadership in crypto regulation, otherwise innovation will flow to jurisdictions with clearer regulations."

Regulatory cautious camp emphasizes that hasty legislation without adequate consumer protection mechanisms could have serious consequences. A former SEC official warned: "The stablecoin yield issue requires deeper risk analysis — we cannot sacrifice financial stability for legislative speed."

International perspective: The EU has already established a relatively comprehensive crypto asset regulatory framework through MiCA, and the UK is also actively advancing related legislation. Analysts point out that if the US continues to delay, it may lose its leading position in the global crypto regulatory competition.

Currently, AI agents are limited to purchasing API services, web content, and other digital services. But Amazon revealed that future versions will expand to broader consumer scenarios including hotel bookings and flight purchases. This means AI agents won’t just handle programming tasks — they’ll act like personal assistants that can book your travel.

Stablecoins are emerging as the key payment rail for the AI agent economy. Coinbase’s USDC, with its programmability and low transaction costs, is ideal for machine-to-machine transactions. Stripe provides the bridge between traditional and crypto payments.

This collaboration reflects tech giants’ bet on the agentic economy. As AI systems become increasingly capable of autonomous decision-making, they need a way to transfer value without human intervention. Stablecoins fill that gap perfectly.

Analysts note that this infrastructure could spawn entirely new business models. Imagine AI agents that automatically compare prices, book the best flights, or even manage supply chain payments — all without human involvement.

The fund allows institutional investors to earn yield on stablecoins while moving funds onchain, supporting around-the-clock operations. This marks another major move by a traditional finance giant into tokenized assets.

State Street manages over 40 trillion dollars in custodial assets and is one of the world largest institutional asset managers. This collaboration with Galaxy demonstrates that the traditional financial system recognition of blockchain technology is moving from pilot stages to real product deployment.

The core advantage of tokenized funds lies in settlement efficiency. Traditional financial market fund transfers are typically constrained by business days and time zones, while blockchain-based tokenized assets can achieve 24/7 real-time clearing and settlement.

This move could accelerate more traditional financial institutions entering the tokenization space. In recent years, asset management giants such as BlackRock and Franklin Templeton have already launched their own tokenized fund products.