GM. This is Milk Road, the newsletter that’s as irresistible as a family order of chicken nuggets at the end of a night out.

Here’s what we got for you today:

• ✍️ Why the GENIUS Act = big deal

• ✍️ How to capitalize on stablecoin adoption

• 🌎 Is everything ok in the macro world?

• 🎙️ The Milk Road Show: Why All Roads Lead to Currency Debasement w/ David Brickell

• 🍪 $XRP gang, this is for you

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WHY THE GENIUS ACT IS A BIGGER DEAL THAN YOU THINK 👀

Eurgh.

Simply writing this down makes me want to give myself a wedgie… but it’s true…

“Having / abiding by rules is important.”

And that’s what the GENIUS Act is hoping to bring to the US stablecoin space: a clear set of rules for everyone to play by.

It’s a bigger deal than you’d think. If passed, it will likely push hundreds of billions – dare we say trillions (over time) – of fresh capital into the crypto space.

So let’s take a quick look at the proposed rules, how far the act is from being passed, and the chances it will actually be made law.

1/ The rules proposed by the GENIUS Act go something like this…

• Issuers must be able to freeze tokens on lawful order

• Individuals will be allowed to self-custody stablecoins

• Stablecoin issuers won’t be able to offer native yield to holders

• Reserves & private keys must be held by a federally supervised custodian

• Stablecoins will be backed 1-to-1 with USD equivalents (no need for FDIC insurance)

• The Treasury can block non-compliant stablecoins from the US (e.g. Tether’s $USDT)

• Issuers must show monthly reserve audits from a US-registered public accounting firm 

More here:

2/ How far is the GENIUS Act from being passed?

We’re almost there. Almost.

Yesterday, the bill passed through the Senate with overwhelming support:

Next up, we have the House of Representatives, then the final signing from the President.

Don’t know what the House of Representatives is and/or how hard it is to get this kind of bill passed through it?

Don’t worry – neither did we until 20 mins ago…

3/ What are the chances the GENIUS bill will actually be passed into law?

Here’s what you need to know:

Currently, the Republicans hold a majority in the House of Reps. (220 vs. the Democrats’ 212).

And given this is a Republican bill, there’s a 95% chance it will be passed on to be confirmed as law by President Trump at some point in the next 6 months or so, at least according to Polymarket. 👇

Neat, so we’re about to have clear regulatory guidelines for stablecoins in the US.

The next questions that come to mind are: 

• What kind of companies will adopt stablecoins if/when this bill is passed?

• What makes stablecoins so special (they seem boring as hell)?

• How the hell do I capitalize on the growth of a stable asset?

Keep scrolling to get your answers…

WHAT’S SO GREAT ABOUT STABLES (AND HOW DO I CAPITALIZE ON THEM)? 💰

Not hyped about stablecoins?

I get it. They lack sex appeal.

But let’s see if I can change your mind by hitting a couple of key points here…

1/ What kind of companies will adopt stablecoins if/when this bill is passed?

Big picture, stablecoins don’t have a clear ‘type’ of business they’re best suited for.

(The same way credit/debit payments don’t have a type.)

If you transact money, there’s a good chance you’re eventually going to want to adopt stablecoin payments, because they’re faster & cheaper than the current options.

Hell, right this second, 18% of Fortune 500 companies are busy adopting crypto – listing stablecoin payments/settlements and cross border transfers as their key motivators:

2/ What makes stablecoins so special (they seem boring as hell)?

True. They are boring.

But MAN are they an improvement on what’s currently on offer.

Stablecoin transactions are 50%+ cheaper for merchants vs. credit cards, and result in more than a 3x increase in revenue for payment processors (that’s a win/win). 👇

Btw, the dude who tweeted this out (Sam Broner) joined us on The Milk Road Show last week to lay out the $260B opportunity he’s seeing in the stablecoin space.

3/ How the hell do I capitalize on the growth of a stable asset?

Fair question.

Assets that will likely benefit (over time) from the GENIUS Act passing include:

Circle ($CRCL): issuer of $USDC and the only fully compliant & publicly traded stablecoin company in the US… for now.

Coinbase ($COIN): receives – get this – 54% of Circle’s revenue, thanks to their current distribution deal.

Fintechs (think PayPal, Block, Stripe): The GENIUS Act will allow non-bank fintechs to innovate in stablecoin payments (remember: it’s estimated stables could 3x payment processor revenues).

Well, well, well…

Would you look at that?

Look who’s getting excited about stablecoins all of a sudden.

IS EVERYTHING OK IN THE MACRO WORLD? 🤨

Wondering how the current Middle East conflict will affect markets?

Honestly, that’s above my pay grade. Good news is – we’ve got a guy for that! 

His name is Tomas, he writes a twice weekly publication called Milk Road Macro, and people are LOVING what he’s putting out:

Click the link below to learn what the current Middle East conflict means for financial markets, risk assets (like Bitcoin), and oil prices – all in plain, easy-to-digest language!

👉 Read the latest Milk Road Macro article

BITE-SIZED COOKIES FOR THE ROAD 🍪

Confused about crypto taxes? Book a free consultation call with TaxQuotes to keep more of what you earned.*

No rate cut! The FOMC leaves rates unchanged for the 4th straight meeting.

$XRP gang, this is for you. The first spot $XRP ETF will be launched in Canada today.

The Iran-Israel war is spilling into crypto. It’s reported that Israeli-linked hackers have breached an Iranian crypto exchange.

7% crypto allocation. That’s the latest recommendation from Spain’s second-largest bank to its clients. If you ask us, that’s a bit too mild.

We’re hosting a meetup at Permissionless! If you’re hanging around New York next week, come grab a beer with the Milk Road team.

This DEX solves an actual UX issue! Milk Road Swap supports both Ethereum and Solana tokens in a single interface.

*this is sponsored content.

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