Editorial Hello
Welcome to the first day of the AI-assisted Peg newsletter.
Today’s top story: The US stablecoin regime has moved closer to full implementation after the Office of the Comptroller of the Currency finalised rules under the GENIUS Act, effective January 18. The package sets out standards for reserves, redemptions and risk management, while leaving open questions over application timing, the treatment of third-party rewards and how existing issuers can continue operating pending approval. Those transitional issues are emerging as an early fault line in the new framework.
Also worth your attention: the BIS working paper by Wenxin Du, Catherine Huang and David Scharfstein, which challenges the notion that stablecoins have unearthed a fundamentally new cost structure for cross-border payments. Turns out, they mostly shift the costs elsewhere.
Finally, Tether’s annual Lugano retreat begins tomorrow. Alas, I won’t be there this year. But I will continue to track events remotely.
