Markets Daily Crypto Roundup: Why U.S. Stablecoin Regulation Is a 'Major Milestone'

Release Date: July 24, 2025
Host: Jen Senasi
Guests: Chris Tyre (President of Bullish) and Lily Lu (President of Solana Foundation)

Introduction

In this pivotal episode of Markets Daily Crypto Roundup, hosted by Jen Senasi of CoinDesk, the discussion centers on the groundbreaking legalization of the GENS Act and its profound implications for the cryptocurrency landscape. Joining Jen are two key industry leaders: Chris Tyre, President of Bullish, and Lily Lu, President of the Solana Foundation. The conversation delves into how the newly signed U.S. stablecoin regulation marks a significant turning point for the crypto industry, reshaping the dynamics for exchanges, Layer One ecosystems, and broader adoption.

The Significance of the GENS Act

Accelerated Regulatory Support

Chris Tyre emphasizes the rapid shift in regulatory stance, stating at [00:51] that the GENS Act represents a "major milestone" for crypto, contrasting sharply with the previous administration's efforts to "stamp the life out of this industry." He highlights the newfound momentum, noting the U.S.'s pivotal role given its substantial share in global GDP and capital markets. Tyre anticipates a resurgence of crypto activities within the U.S., fueled by regulatory clarity that historically sparks increased engagement and innovation.

A Surprising Turnaround

Lily Lu reflects on the unexpected regulatory turnaround over the past year. At [01:36], she recounts, "I remember when Ryan Selkis shook Trump's hand in Mar-A-Lago and everyone lost their minds because even that just being in the same frame and that anyone in an official position in the United States would remember crypto's name in a fond way was unimaginable." This dramatic shift from skepticism to strategic endorsement underscores the U.S. government's evolving perception of stablecoins as "of strategic huge importance to the country."

Impact on the U.S. and Global Crypto Ecosystem

Recentered Focus on the U.S.

Chris Tyre discusses the strategic importance of the U.S. market, highlighting its disproportionate influence relative to its population size ([03:18]). He points out that regulatory clarity in the U.S. is expected to attract significant crypto activities, similar to how Switzerland and Singapore benefited from clear regulations in the past. Tyre anticipates a "huge amount of activity" in the U.S., positioning it as a fertile ground for established and emerging crypto businesses aiming to thrive within the world's largest economy.

Evolution of Global Crypto Hubs

Lily Lu outlines the historical mobility of crypto hubs, noting shifts from Shanghai to San Francisco, then Hong Kong, Berlin, Lisbon, and Singapore. Currently, she identifies New York and the UAE as the new dual capitals of the crypto world ([05:38]). Lu envisions these hubs as centers where crypto can flourish under welcoming regulatory environments, allowing the U.S. to lead in developing open, interoperable blockchain standards akin to the early days of the internet.

Enhanced Global Adoption

Chris Tyre adds that U.S. involvement elevates crypto as a global financial commodity, facilitating easier access to dollar-denominated transactions worldwide ([08:27]). He cites improvements in corporate banking services and reduced friction for global adoption as key outcomes, further solidifying the U.S.'s role in shaping the future of digital commodities.

The Future of Stablecoins and Real-World Applications

Stablecoins as Financial Infrastructure

Lily Lu asserts that the legitimization and regulation of stablecoins underpin the development of robust on-chain economies ([09:42]). She explains that stablecoins serve as the foundational asset for all financial transactions on blockchain, enabling everything from trading in DeFi ecosystems to everyday payments. This foundational role is critical for protocols like Solana, which view stablecoins as essential for fostering a thriving on-chain financial system.

Expanding Use Cases Beyond DeFi

Chris Tyre elaborates on the diverse applications of stablecoins, beyond their traditional use in DeFi. He highlights their role in facilitating international remittances, simplifying corporate settlements in commodity trades, and enabling swift, transparent transactions that bypass the delays and inefficiencies of traditional banking systems ([12:21]). Tyre envisions a "Cambrian explosion of innovation" in the stablecoin space, driven by new credible issuers entering the market.

Tokenization and Programmability

Lily Lu discusses the broader potential of tokenization facilitated by stablecoins, moving beyond digital dollars to encompass a wide array of tangible and intangible assets ([15:27]). She envisions a future where crypto wallets serve as comprehensive portals for managing diverse assets and engaging in various financial activities, leveraging the programmability of blockchain to create seamless and versatile user experiences.

Consolidation and Coexistence of Stablecoins

Likelihood of Market Consolidation

Chris Tyre anticipates a consolidation phase within the stablecoin market, driven by network effects and regulatory pressures ([17:41]). He suggests that while multiple stablecoins will remain, their proliferation will be tempered by the need for interoperability and the impracticality of maintaining numerous versions of a dollar stablecoin within a single jurisdiction.

Competitive Yet Interconnected Market

Lily Lu concurs, noting that branded stablecoins and white-label infrastructure solutions will coexist, with network effects ensuring that only a select number achieve widespread acceptance ([18:51]). She predicts the emergence of business models that support the creation of branded stablecoins backed by unified liquidity pools, fostering a competitive yet interconnected ecosystem.

Notable Quotes

• Chris Tyre [00:51]: "I think that this is a major milestone... it's hard to imagine 12 months ago that we would be here this quickly and that we'd be moving at this pace."

• Lily Lu [01:36]: "For the entire time we've predicated our involvement in this whole space on the assumption that the United States government would be hostile towards crypto."

• Chris Tyre [03:18]: "When we look at the U.S., it might only be 4% of global population, but it's 24% global GDP, and it's 40% of global capital markets."

• Lily Lu [05:38]: "Crypto will follow where it is being welcomed. And that also means that it's reshoring into the US at a pretty rapid pace."

• Chris Tyre [08:27]: "Crypto are really digital commodities... giving air cover to banks globally to provide corporate banking services is a major reduction in friction for adoption."

• Lily Lu [15:27]: "Once you can pay with a stablecoin, you can pay using that technological standard with really any asset... what this means is that your crypto wallet becomes your singular portal into the whole range of assets."

• Chris Tyre [17:41]: "There are not going to be 15 to 20 to 100 [stablecoins] in each jurisdiction. I think that's incredibly unlikely."

• Lily Lu [18:51]: "There will have to be network effects around the liquidity of these different assets. And we already see that as being a bit of a challenge day with new entrants into the market."

Conclusion

The signing of the GENS Act marks a transformative era for the U.S. and global cryptocurrency markets, fostering an environment ripe for innovation and adoption. As regulatory clarity paves the way for increased trust and participation, stablecoins emerge as pivotal instruments in both financial ecosystems and real-world applications. Industry leaders like Chris Tyre and Lily Lu foresee a future where stablecoins not only facilitate seamless transactions but also underpin a diverse array of financial assets and services. While market consolidation is anticipated, the interplay of competition and network effects is expected to shape a robust and interconnected stablecoin landscape. This regulatory milestone not only legitimizes crypto within traditional financial frameworks but also accelerates its evolution into a foundational element of the global economy.