GENIUS Act: A Treasurer’s Perspective on Stable Coins

Closely following the emergence of stable coins, and more recently, the GENIUS Act will add value to all the Treasurers. You need not be a crypto enthusiast, but as a Treasurer assessing what could realistically function within a regulated corporate environment.

Cutting Through the Noise

At their core, stable coins are digital representations of fiat currency, designed to maintain a stable value. The operational benefits are:

1. Faster settlement
2. Improved liquidity visibility
3. Reduced friction in cross‑border payments
4. Programmable payment flows

Put simply, stable coins are not about replacing money they are about improving how it moves.

Why Regulation Changes the Conversation

Corporate Treasuries operate where certainty & governance are non‑negotiable. Any instrument must meet standards around:

1. Capital preservation
2. Auditability
3. Counterparty risk
4. Regulatory clarity

This is where the GENIUS Act becomes relevant.

Rather than treating stable coins as a fringe innovation, the Act positions them as part of financial infrastructure, with a focus on:

1. Clear definitions of payment stable coins
2. Strong reserve and redemption requirements
3. Segregation of customer assets
4. Oversight aligned with traditional financial risk frameworks

What This Could Mean for a Treasurer

Stable coins could meaningfully impact:

1. Liquidity management: Near‑instant settlement may reduce idle balances & improve intraday forecasting
2. Cross‑border payment: Complementing existing rails with faster settlement & fewer intermediaries
3. Treasury operations: Programmable payments enabling automated controls & real‑time reconciliation
4. Risk management: Regulated reserves & clear redemption rights begin to resemble a new form of cash equivalent, subject to policy and accounting treatment

What This Does Not Mean

This does not imply rushing to redesign Treasury architectures; what it does mean is that Treasurers should understand stable coins well enough to separate genuine utility from hype before adoption decisions are forced by the market.

The Evolving Role of the Treasurer

Treasurers are no longer just custodians of cash; we are architects of financial flow. Understanding frameworks like the GENIUS Act allows us to:

1. Engage intelligently with banks, fintechs, and regulators
2. Prepare organisations for future‑ready payment models
3. Ask the right questions before change becomes inevitable

In my view, stable coins, when governed correctl,y are not a disruption to Treasury. They are a logical next step in the modernization of how money moves. And as Treasurers, our responsibility is to stay ahead of that curve informed, thoughtful, and grounded in fundamentals.