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