Stablecoin

Crypto and banking representatives met at the White House on Thursday for a third session in 16 days, following meetings on Feb. 2 and Feb. 10. Adviser Patrick Witt pushed a trade‑off to permit stablecoin rewards only on transaction activity, not balances. No agreement was reached, but Ripple and Coinbase executives described the talks as constructive.

KPMG principal Jamison Sites said in an interview that U.S. tax rules still do not clearly define stablecoins, even as legislation such as the CLARITY Act and GENIUS Act advances. He warned that this gap forces businesses accepting stablecoin payments to track cost basis on each transaction, complicating reporting and potentially slowing broader adoption.

In a Thursday interview in Palm Beach, Eric Trump said that despite Bitcoin's recent drop below $67,000 and its extended downturn, cryptocurrencies and blockchain are still poised to underpin mainstream financial systems. He highlighted World Liberty Financial's tokenized Maldives resort project and the USD1 stablecoin, while also discussing pending U.S. policy debates on stablecoin yields and ongoing lawsuits over alleged politically motivated bank account closures.

BTCC has introduced BTCC TradFi, enabling users to trade forex, commodities, indices, and stocks alongside tokenized metals, all margined and settled in USDT. The rollout follows strong 2025 performance in tokenized metals, including $5.72 billion in gold volume and a peak daily silver volume of $301 million, with 25+ instruments and leverage up to 500x available.

Blockchain analytics firm TRM Labs reported that illicit entities received roughly $141 billion in stablecoins in 2025, the highest level in five years, driven mainly by sanctions-linked networks and large-scale money laundering. Sanctions-related activity made up 86% of all illicit crypto flows, with around $72 billion tied to the Russian ruble-pegged A7A5 token, while overall illicit use represented about 1% of an estimated $12 trillion in annual stablecoin transactions.

The European Central Bank plans to choose payment service providers for its digital euro project in early 2026, with a 12‑month pilot starting in the second half of 2027. The first issuance is aimed for 2029, and the currency is designed to work with existing cards and wallets while capping merchant fees. Officials expect it to strengthen European payment systems and reduce reliance on stablecoins and global card networks.

ProShares launched the GENIUS Money Market ETF under ticker IQMM, investing solely in short‑term U.S. Treasurys and designed to qualify as reserve assets for stablecoin issuers. The fund uses a floating NAV, intraday trading, and same‑day settlement, with prospectus notes that yields could be lower versus broader money market mandates.

ProShares has launched the ProShares GENIUS Money Market ETF (NYSE Arca: IQMM), a vehicle built to hold assets eligible as reserves for dollar-pegged stablecoins under U.S. law. The fund confines holdings to cash and U.S. government securities maturing in 93 days or less, while stablecoin supply sits just under $300 billion, according to The Block's data.

On February 20, Congress is scheduled to vote on the CLARITY Act, a bill that would define how yields on stablecoins are treated under U.S. law. Lawmakers will debate the regulatory framework for stablecoin interest payments and how these products can be offered to investors. The outcome could shape how banks, fintech firms, and crypto platforms structure dollar-pegged digital assets.

On 19 February 2026, World Liberty Financial announced its first real-world asset issuance: tokenized loan revenue interests tied to the Trump International Hotel & Resort in the Maldives. The private placement targets verified accredited investors under Regulation D 506(c) and Regulation S, offering fixed-yield exposure to cash flows from resort financing, with Securitize and DarGlobal involved in issuance and development. Following the announcement, WLFI's governance token rose about 20%, highlighting market focus on the project and its role in linking stablecoins to income-generating real estate.