Attorney Deaton: Circle and Ripple set to benefit from new GENIUS stablecoin law

Attorney Deaton: Circle and Ripple set to benefit from new GENIUS stablecoin law

Legal expert John Deaton believes that Circle and Ripple, issuers of two of the top three stablecoins, are well-positioned to gain from the recently enacted GENIUS law signed by U.S. President Donald Trump.

 
According to Deaton, both USDC (issued by Circle) and RLUSD (issued by Ripple) meet the requirements outlined in the legislation, putting them in a favorable position to benefit from the new regulatory framework.

Deaton also sees potential for Ethereum, pointing out that many stablecoins and decentralized finance (DeFi) applications are built on its blockchain. He noted that Ethereum co-founder Joseph Lubin, in collaboration with strategy firm Fundstrat, is aiming to turn Ethereum into a key financial hub for institutional capital.

 
Additionally, Deaton referenced recent comments by Tether CEO Paolo Ardoino, who hinted at plans to launch a new U.S.-focused stablecoin. Ardoino stated that Tether intends to be recognized as a foreign issuer under the GENIUS framework — a move that indicates the company’s intent to comply with U.S. regulation.

 
The GENIUS Act establishes clear rules for U.S. dollar–pegged stablecoins, requiring full 1:1 backing with cash, treasury bills, or other low-risk assets. Issuers must obtain federal licenses, undergo regular independent audits, and comply with the U.S. Bank Secrecy Act and anti-money laundering (AML) and counter-terrorism financing (CFT) regulations.

 
Deaton also reiterated his past criticism of banks that refuse to serve crypto firms and traders, warning that such actions stifle innovation and limit economic opportunity within the United States.