crypto.news 2025-05-23 06:40:54

US banks plot joint stablecoin as regulation looms over crypto sector

JPMorgan Chase, Bank of America and other major banks are reportedly exploring a shared stablecoin to keep pace with rising competition. Some of the biggest U.S. banks are exploring a plan to jointly issue a stablecoin as lawmakers move closer to approving new rules for digital assets, according to people familiar with the matter, the Wall Street Journal reported Friday. Banks involved in early talks reportedly include JPMorgan Chase , Bank of America , Citigroup, and Wells Fargo. The discussions also involve companies they co-own, such as Early Warning Services, which operates Zelle, and the Clearing House. These talks are still in the “early, conceptual stages and could change,” the source said. One idea reportedly being discussed is to let other banks use the stablecoin. Some regional and community banks have reportedly also explored a separate stablecoin consortium, though details remain unclear. You might also like: Hong Kong passes Stablecoins Bill to regulate fiat-backed stablecoins The news comes just days after the U.S. Senate voted to advance the GENIUS Act, a bill that would create a regulatory framework for stablecoins. The bill passed a key procedural vote 66-32 on Monday, May 19, clearing the way for full debate. It would require issuers to hold full dollar reserves, undergo audits, and follow extra rules for issuing over $50 billion in tokens. The U.S. President Donald Trump is also backing stablecoins. His advisor David Sacks said in a recent interview that regulation could bring “trillions of dollars of demand for our Treasuries practically overnight, very quickly.” Read more: Tether tightens grip as stablecoin market cap hits $243b