Welcome to Stablecoin Musings Hub!

Regular updates on policy and regulation changes regarding stables and CBDCs.

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📜Finance and Economics Discussion Series (FEDs): A Framework for Understanding the Vulnerabilities of New
Money-Like Products


- In this theoretical framework, U.S. MMETFs, tokenized MMFs, and stablecoins are the primary focus.

- Key regulation at play is SEC Rule 2a-7


🔗 Source: https://www.federalreserve.gov/econres/feds/a-framework-for-understanding-the-vulnerabilities-of-new-money-like-products.htm

🗣 Crypto bill markup expected next week as pressure mounts before shutdown deadline

- The CLARITY Act is a major bipartisan push to create a definitive legal framework for cryptocurrency. It is designed to end the "regulation by enforcement" era where the SEC and CFTC fought over who controls which digital assets.

- After passing the House in mid-2025, the bill is now entering a high-stakes legislative sprint.

- Senate leaders have set a high-stakes "markup" for January 15, 2026, creating a narrow window to pass the bill before it is derailed by federal budget deadlines and the upcoming midterm election cycle.

Source: https://www.coindesk.com/policy/2026/01/06/u-s-senate-back-to-crypto-talks-as-industry-s-make-or-break-bill-faces-time-crunch

🗣 The Wyoming Stable Token Commission’s $FRNT, the first stablecoin issued by a U.S. State, is now live on Solana

- Unlike private stablecoins (like Tether or USDC) which are run by corporations, $FRNT is issued by a public entity subject to state law and public audits.

- For every $FRNT token issued, the State of Wyoming holds at least $1.02 in reserves (a 102% backing).

- Important to note that $FRNT is multichain

- Key regulation at play is Wyoming Stable Token Act (2024 amended)

Source: https://x.com/solana/status/2008947835648249884

🗣 Trump-backed World Liberty Financial has applied for a national trust bank charter to issue and custody USD1 stablecoins.

- By applying for this charter from the Office of the Comptroller of the Currency (OCC), World Liberty Financial is seeking to create a new entity called World Liberty Trust Company, National Association (WLTC).

- Currently, crypto companies often have to get "Money Transmitter Licenses" in dozens of individual states (like New York’s BitLicense). A national charter allows them to operate across the entire U.S. under one set of federal rules from the OCC, bypassing state-by-state red tape.

- Key regulations at play are National Bank Act (NBA) and Interpretive Letter 1176.

🔗 Source: https://www.coindesk.com/policy/2026/01/07/trump-linked-world-liberty-financial-applies-for-federal-bank-charter

🗣 RAKBANK Wins Approval for AED Stablecoin as UAE’s Digital Dirham Skips 2025 Launch

- The National Bank of Ras Al Khaimah (RAKBANK) received "in-principle" approval from the Central Bank of the UAE (CBUAE) to issue a fully regulated, dirham-backed stablecoin.

- This is a landmark event because RAKBANK is the first major conventional bank in the UAE to reach this stage

🔗 Source: https://finance.yahoo.com/news/rakbank-wins-approval-aed-stablecoin-100933569.html

🗣 Polygon targets stablecoin payments with deals worth $250 million

• Polygon Labs is evolving from a software developer into a regulated U.S. financial services provider by acquiring Coinme, which holds dozens of state-level money transmitter licenses.

• The move is a direct response to the Genius Act, leveraging the new U.S. regulatory framework to offer fully compliant, consumer-facing stablecoin payment services.

🔗 Source: https://www.reuters.com/business/polygon-targets-stablecoin-payments-with-deals-worth-250-million-2026-01-13/

🗣 Interactive Brokers introduces stablecoin funding for brokerage accounts

• Stablecoins will be the next global form of money

🔗 Source: https://x.com/Hedgeye/status/2011836942787187126?s=20

🗣 Bank lobby targets stablecoin yield and open banking in policy push

• Major bank lobbies (BPI and ICBA) are pressuring Congress to broaden a "yield loophole" by banning not just issuers, but also exchanges and intermediaries from paying interest or rewards on stablecoins to prevent massive deposit flight from traditional banks.

• The lobby is pushing for stricter limits on the CFPB’s Open Banking (Section 1033) rules, arguing that unrestricted data sharing with third-party fintechs creates significant cybersecurity risks and undermines the safety of the traditional banking system.

• Key legislation at play is Open Banking and the CFPB’s Section 1033 Rule

🔗 Source: https://www.coindesk.com/policy/2026/01/21/bank-lobby-targets-stablecoin-yield-and-open-banking-in-policy-push

🗣Fidelity to Enter Stablecoin Market With Ethereum-Based 'Digital Dollar'

• Fidelity is launching the Fidelity Digital Dollar (FIDD), a stablecoin on the Ethereum network that is pegged 1:1 to the U.S. Dollar.

• The token is fully collateralized by U.S. Dollar-denominated reserves, including cash and short-term U.S. Treasuries, managed directly by Fidelity’s asset management arm.

🔗 Source: https://decrypt.co/356165/fidelity-enters-stablecoin-market-ethereum-digital-dollar

🗣Tether Announces the Launch of USA₮, the Federally Regulated, Dollar-Backed Stablecoin, Made in America

• Tether has launched USA₮, a stablecoin pegged 1:1 to the U.S. Dollar that is issued by Anchorage Digital Bank, N.A., making it the first Tether product fully regulated by the U.S. Office of the Comptroller of the Currency (OCC).

• Designed specifically to comply with the federal GENIUS Act, the token’s U.S. Dollar reserves are managed by Cantor Fitzgerald to provide the transparency and oversight required for major American financial institutions.

🔗 Source: https://tether.io/news/tether-announces-the-launch-of-usat-the-federally-regulated-dollar-backed-stablecoin-made-in-america/

🗣 Digital Pound Lab: Phase 1 Update

• The Bank of England and Accenture successfully tested the "building blocks" of a digital pound, proving that programmable features like automated "locks" and verifiable credentials can enable secure, privacy-preserving payments.

• Phase 1 demonstrated that the digital pound can bridge different technologies, allowing for seamless transactions between traditional payment infrastructures and external blockchain-based assets.

🔗 Source: https://www.bankofengland.co.uk/the-digital-pound/lab/phase-1-update