Panel, Conference Presentation
The Genius Effect: Stablecoins Take the Stage | Future of Finance 2026
Milken InstituteDaniel Gorfine, Lauren Belive, Robin Cook, Michael Greenwald, Eugene Ludwig, Caroline D. Pham, Carol Engfam
- Speakers anticipate the "Genius Act" will establish a regulatory framework allowing stablecoins and tokenized deposits to function as collateral and cash equivalents, integrating seamlessly into traditional finance and treasury management systems.
- Expectations include the completion of specific rules for stablecoins as payment and settlement instruments by agencies, with a predicted amendment to the Genius Act by 2027 permitting interest payments to issuers.
- Projections indicate the U.S. will lead in this evolution through a dual banking system of state and federal charters, though rules may shift in more conservative directions to address a volatile global environment.
- Future infrastructure is expected to rely on resilient, transparent, secure cloud systems, potentially leveraging U.S. providers to reinforce economic competitiveness.
- The convergence of AI and digital assets is forecasted to create a new financial paradigm involving smart contracts, automation, and a shift from 55 million Americans holding crypto assets to utilizing crypto utility tools for payments.
- Market size estimates suggest "1 trillion in agentic payments by 2030," with other consultants predicting 15 to 25 percent of e-commerce will be driven by agentic AI.
- Speakers predict stablecoins will act as a foreign policy tool by creating demand for the U.S. dollar, lowering domestic interest rates, while warnings against denying non-U.S. entities digital dollar access are noted as critical for global commerce.
- Concerns regarding the capture of core bank deposits, cybersecurity vulnerabilities, and the need for increased cyber controls are highlighted as material risks alongside the expectation that AI will remain a tool controlled by humans rather than acting independently in over 50 percent of transactions within five years.
- Regulatory conversations are expected to evolve toward uniform consumer protection rules and federal charters to enable smarter regulation and faster, cheaper global payments.