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Potential Winners Under The STABLE Act
Nicolai Søndergaard
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Key Takeaways
8 min read
  • The STABLE Act mandates full-reserve, non-interest-bearing stablecoins issued only by licensed entities, favoring compliant players like Coinbase, PayPal, and Visa while sidelining decentralized and yield-bearing tokens.
  • Stablecoin activity remains concentrated in USDT and USDC on Ethereum, with increasing flows through CEXs and major DeFi apps despite potential regulatory shifts.
  • The winners, in case the STABLE act goes through, will be a lot of non-obvious players that are more in the background.

Introduction

The Stablecoin Transparency and Accountability for a Better Ledger Economy Act of 2025 (STABLE Act) introduces a comprehensive U.S. regulatory framework for payment stablecoins, digital tokens pegged 1:1 to a national currency and redeemable on demand. The Act restricts issuance to licensed entities (insured banks, OCC-qualified non-banks, or approved state trusts) and mandates full reserve backing in cash or short-term Treasuries. Critically, issuers are prohibited from paying interest/yield to stablecoin holders, cementing these tokens as transactional money rather than investments.

Algorithmic or crypto-collateralized stablecoins are excluded from the “payment stablecoin” category and even face a two-year...