A new issue of The Takeaway explores how the GENIUS Act could benefit stablecoin holders while potentially creating unintended market consequences.  

COLLEGE STATION, TX (November 11, 2025) – A new issue of The Takeaway discusses the usefulness of the new Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, launched in July 2025, arguing that it is likely to benefit stablecoin holders depending on careful implementation and international coordination. Texas A&M Professor of Law and Finance Christopher Odinet examines how stablecoins have become essential to digital finance while highlighting the delicate balance between fostering financial innovation and protecting consumers. Odinet argues that issuers of reserve-backed stablecoins resemble banks, yet they lack insurance and clear fiduciary duties. Additionally, users have no contractual or property claim over the reserves backing their coins, undermining market confidence and the illusion of stability behind the “stable” coins. While the GENIUS Act promises to provide property redemption and bankruptcy protection for holders, the author warns it distorts financial markets due to high complexity and overregulation that could push stablecoin activity offshore.

You can read the full policy brief at “Understanding Stablecoins: Market Growth, Regulatory Challenges, and the GENIUS Act.” Christopher K. Odinet is a professor of law, Mosbacher research fellow, and affiliate professor of finance at Texas A&M University. His research and teaching focus on commercial law and finance, property law, and financial regulation.

The Takeaway is a publication of the Mosbacher Institute for Trade, Economics, and Public Policy at the Bush School of Government & Public Service at Texas A&M University.