The rapid growth of U.S. dollar-backed stablecoins has moved them from the margins of the cryptocurrency ecosystem into the center of debates about the future of money and payments, the global role of the dollar, and the U.S. fiscal position. The passage of the GENIUS Act in 2025 created the first comprehensive federal framework for payment stablecoins, opening the door for broader adoption and innovation while raising new questions about financial stability and efforts to combat illicit finance and protect our national security.
Nellie Liang of the Hutchins Center at Brookings and Brent Neiman of the University of Chicago examine how stablecoins could reshape the U.S. financial system if they become widely used for payments….