Europe’s largest asset supervisor is sounding alarms as U.S.-regulated stablecoins surge, threatening to erode greenback dominance and destabilize world cash flows at large scale.
US Greenback’s International Function Challenged by Surge in Regulated Stablecoins
A sweeping shift in world monetary dynamics could possibly be triggered by the U.S. push to control dollar-backed stablecoins, prompting fears of financial destabilization worldwide. Amundi, Europe’s largest asset supervisor with over €2 trillion ($2.36 trillion) in belongings below administration, raised issues on July 3 that the U.S. Senate’s current passage of the GENIUS Act—a invoice establishing oversight for U.S.-dollar-pegged crypto tokens—might considerably reshape world cash flows.
Vincent Mortier, chief funding officer at Amundi, informed Reuters the invoice “could possibly be genius, or it could possibly be evil,” expressing skepticism about its potential penalties. For the reason that GENIUS Act requires these belongings to be pegged to the U.S. greenback, this may increasingly stimulate higher demand for U.S. Treasury bonds. Mortier cautioned that this development would possibly backfire, stating:
In doing so, you create a substitute for the U.S. greenback and that would result in extra weakening of the greenback.
“As a result of if a rustic is pushing a stablecoin, it could possibly be perceived as pushing the message that the greenback is just not that robust,” he opined.
The Guiding and Establishing Nationwide Innovation for U.S. Stablecoins (GENIUS) Act efficiently handed the Senate in June 2025. This laws goals to create a complete federal framework for regulating fee stablecoins, intending to spice up monetary stability, improve shopper safety, and foster innovation inside the digital asset house. The GENIUS Act is now set for a pivotal Home vote in mid-July.
Whereas U.S. policymakers largely advocate for the GENIUS Act as a strategic transfer to solidify the U.S. greenback’s preeminent place within the evolving digital financial system, world establishments like Amundi are articulating particular, nuanced issues. As Mortier highlighted, regardless of the express requirement for stablecoins to be pegged to the U.S. greenback, the act might inadvertently subtly diminish the greenback’s distinctive world standing, doubtlessly contributing to its general weakening. JPMorgan, as an example, tasks stablecoin circulation reaching $500 billion by 2028. This fast growth of a dollar-pegged digital foreign money market, at the same time as over 90% of stablecoins are dollar-denominated and a good portion of transactions happen exterior the U.S., raises advanced questions on its long-term influence on world cash flows and the danger of broader financial destabilization.
