The regulatory greenlight is blinking. The GENIUS Act would give banks the legal clarity they need to issue regulated stablecoins—something that’s been in limbo for years. Banks are moving quick to compete with Tether and Circle (which is set to IPO soon, while simultaneously entertaining acquisition bids from Ripple and Coinbase).

There has been no announcement yet regarding which chain(s) will be powering the stablecoins. Many of these banks previously had pilot projects in the works for several years, each with different starting scopes and objectives. Something to keep a very close eye on. Whichever chains can capture stablecoin liquidity will go a long way in becoming the dominant market player. Currently Ethereum has about 50% of all stablecoins.

This is the third U.S. state to pass similar bills. And it won’t be the last. Bitcoin is now entering the conversation as a treasury asset at the state level.

A possible game-theoretic trigger. As more jurisdictions accumulate BTC, pressure will mount on others to follow—so they’re not left behind.

These bills soften the ground for the BITCOIN Act, a federal bill which would have the US government purchase ~5% of the total Bitcoin supply (approx. 1M bitcoin) in a budget neutral fashion. President Trump has signaled support for the bill, but it is not expected to have bipartisan support. Should states adopt similar strategies, and if they are successful, the odds of the BITCOIN Act passing may increase.

However, unlike the BITCOIN ACT, Texas’ bill has no requirement that the reserve actually buy any bitcoin. Whether this is a serious intention, or just political pandering - only time will tell.

Public companies ($117B)

Public companies ($117B)

Wealth management platforms ($120B)

Nation-states and U.S. states ($180B+)

Stablecoin: A digital dollar. It’s a cryptocurrency that stays pegged to $1, making it useful for payments, remittances, and trading without price swings.

GENIUS Act: A proposed U.S. law that would regulate stablecoins—basically creating rules for banks and fintechs to issue them legally and safely.

Ethereum (ETH): A blockchain like Bitcoin, but designed for more complex applications. Think of it as programmable money—and the infrastructure layer for most stablecoins.

Bitcoin Reserve: A pool of BTC held by a government (like Texas) as a strategic asset—kind of like a digital version of gold in a treasury vault.

Institutional Inflows: When large entities like banks, pensions, or sovereign funds buy into crypto. These flows are often slow to start, but massive when they come.