Government regulation of financial institutions is expensive and there is no reason to think regulation of payment stablecoins is going to be cheap. Drafting, issuing and refining financial regulations is itself a costly time-consuming process. The Basle capital and liquidity framework has taken decades to develop and implement—and it’s still unfinished. The GENIUS Act requires federal bank regulatory agencies to produce safety and soundness rules for payment stablecoins in addition to supervising the payment stablecoins issuers that will ultimately be licensed by institutions under their jurisdiction. And yet the Act does not provide any resources for developing the regulatory infrastructure needed to launch the industry.
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