New US Stablecoin law faces first test as firms exploit “Rewards” loophole, says Nigeria’s SEC Chief
- Dr. Emomotimi Agama calls for coordinated regulatory responses to the dual nature of stablecoins.
- The U.S. enacted the GENIUS Act of 2025, the first comprehensive framework for payment stablecoins.
- Crypto firms are exploiting loopholes in the GENIUS Act by rebranding interest as 'rewards'.
The ongoing evolution of stablecoin regulations highlights the delicate balance between fostering innovation and ensuring consumer protection. As regulators like Dr. Agama advocate for tailored approaches, it is crucial to remain vigilant against loopholes that could undermine financial stability. The future of stablecoins will depend on the ability of regulatory frameworks to adapt to the rapidly changing landscape of digital finance.
