GENIUS Act Back on Track
China’s Open-Source AI Gains Ground and Wall Street Embraces Stablecoins Shift
GENIUS Act Back on Track
In a dramatic turnaround late Tuesday, former President Donald Trump announced that House Republicans who had earlier blocked key crypto legislation had reversed course after a meeting at the White House. The centerpiece of the legislative package is the GENIUS Act, which would regulate stablecoins and position the U.S. as a leader in digital assets. Despite failing a procedural vote earlier in the day, Trump said 11 of the 12 needed lawmakers now support advancing the bill.
The shift highlights Trump’s strong influence over House Republicans, especially during what he dubbed “Crypto Week.” Trump emphasized that digital assets are the future and positioned the GENIUS Act as a strategic move to outpace China and Europe.
Crypto markets initially reacted negatively. Shares of Circle dropped 7%, Coinbase fell 4%, and MARA Holdings slipped over 2%. If passed, the GENIUS Act, CLARITY Act, and a bill banning CBDCs would reshape U.S. crypto regulation.
China’s Open-Source AI Gains Ground
Nvidia CEO Jensen Huang praised China’s AI development during a speech in Beijing, calling models from DeepSeek, Alibaba, Tencent, MiniMax, and Baidu “world class” and open-sourced. His remarks come as Nvidia prepares to resume shipments of its H20 AI chips to China after receiving U.S. government clearance. This decision could significantly boost Nvidia’s revenue, with analysts estimating a potential 10% lift to earnings.
Despite ongoing U.S. export restrictions, Huang emphasized that over 1.5 million Chinese developers currently build on Nvidia’s platform. He highlighted China’s commitment to open-source AI as a global catalyst for innovation and cooperation. Notably, firms like Alibaba-backed Moonshot are releasing open-source models that rival ChatGPT.
Nvidia lost billions in Chinese revenue due to chip restrictions, and Huang warned that Huawei could fill the gap. Still, he argued that maintaining global access is vital for U.S. leadership in AI, pushing back against isolationist policies in tech.
Wall Street Embraces Stablecoins Shift
JPMorgan CEO Jamie Dimon and Citigroup CEO Jane Fraser confirmed plans to enter the stablecoin space, signaling Wall Street’s accelerating embrace of digital assets. Fraser said Citigroup is exploring issuing its own stablecoin, adding that the bank welcomes the U.S. administration’s openness to letting traditional financial institutions participate in crypto.
Dimon, once a crypto skeptic, acknowledged the need to adapt. JPMorgan recently announced a “deposit token,” JPMD, aimed at institutional clients—similar in function to a stablecoin. Dimon emphasized the importance of understanding and integrating stablecoins into the bank’s strategy to stay competitive in the evolving payments landscape.
This shift comes during “Crypto Week” in Washington, where lawmakers are debating sweeping legislation on digital assets. While political gridlock temporarily stalled the bills, which include stablecoin regulation and a ban on central bank digital currencies, major banks appear to be positioning themselves for eventual regulatory clarity and mainstream adoption.
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