SS #24 - Stablecoins Enter the Fed’s Policy Conversation

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Welcome to our 24th edition of the StableScope. A new 2x a week, stablecoin-focused newsletter from Launchy. Given the growth of the vertical, there's an increasing demand for more recurring reporting and curation on stablecoins.

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In Today's Edition:

• Headline: Stablecoins Enter the Fed’s Policy Conversation

• Quick Bites: U.S. Treasury Department starts working on GENIUS

• Yield of the Week: 98.79% APY on Gearbox

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HEADLINE

Stablecoins Enter the Fed’s Policy Conversation

State of play: The Federal Reserve is signaling a more open stance toward digital assets, with Governor Christopher Waller emphasizing support for technology and innovation in payments.

• Fed officials, including Waller and Vice Chair Bowman, highlighted the importance of embracing new technologies and moving away from an overly cautious stance on crypto.

• Recent Fed actions: ending extra supervision of banks in crypto, removing “reputational risk” classifications, and withdrawing restrictive guidance, mark a clear policy shift.

• Stablecoins were explicitly discussed in July’s FOMC minutes, with the Fed acknowledging their potential to improve payment efficiency and increase demand for Treasuries, while noting risks to financial stability.

What’s Next: We can expect more serious exploration of stablecoin integration into the U.S. financial system, including regulatory frameworks balancing innovation and systemic risk. Banks may gain clearer signals that engagement with stablecoins is acceptable, paving the way for pilot programs and partnerships with private issuers.

Why it Matters: The Fed’s tone shift matters because it reduces uncertainty around crypto banking and stablecoins, two areas where regulatory ambiguity has stifled progress. Acknowledging stablecoins as potentially positive for payment efficiency and Treasury demand reframes them from a threat to a possible tool of financial policy.

Our Take: This is a watershed moment for U.S. digital asset policy. By pulling back from restrictive guidance and openly debating stablecoins’ benefits, the Fed is giving banks and innovators more room to build.

QUICK BITES

• Circle acquires Malachite.

• Bullish settles $1.15B IPO using stablecoins.

• U.S. Treasury Department starts working on GENIUS.

• World Liberty stablecoin is added to Coinbase roadmap.

• Stripe’s Bridge teams up with M0 protocol to issue stablecoins.

• Goldman Sachs sees stablecoin market reaching trillions of dollars.

• Wyoming launches first state-backed stablecoin on seven blockchains.

• Ripple partners with SBI to roll out RLUSD stablecoin in Japan by Q1 2026.

• China weighs allowing yuan-backed stablecoins to expand currency’s global use.

• Binance rolls out Plasma USDT 'locked product' with daily stablecoin yield and XPL airdrop.

• Crypto groups push back on banking industry’s call to amend GENIUS stablecoin law.

• Tether appoints former White House Crypto Council head Bo Hines as US strategy advisor.

YIELD OF THE WEEK

Gearbox Resolv RLP: 11.66% - 51.91% APY

• Gearbox enables users to deposit stablecoins and PT on Gearbox to farm RLP with leverage of up to 10x.

• The pool is managed by Tulipa Capital with no lockup, impermanent loss, or standard fees.

• A 0.02% liquidation fee applies, with debt limits set between $30K minimum and $1.5M maximum.

Gearbox mBASIS: 9.62% - 98.79% APY

• Gearbox enables users to deposit stablecoins and PT to farm RLP with leverage up to 11x.

• The pool is managed by Re7, offering no lockup, impermanent loss, or standard fees.

• A 0.01% liquidation fee applies, with debt limits ranging from $10K to $330K.

Midas mRe7YIELD: 18.85% APY

• Midas’s mRe7YIELD follows market-neutral DeFi yield strategies across multiple blockchain ecosystems.

• Re7 Capital oversees the strategy as the appointed Risk Manager.

• Investments made before the 26th begin exposure the next month, while those after start two months later. Redemptions follow the same rule with a cutoff date of the 22nd.

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Disclaimer: All the information presented in this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice.