During the Consensus 2025 conference, investor Kevin O’Leary highlighted that stablecoins pose a significant threat to legacy foreign exchange and payment platforms by providing cheaper and faster alternatives for cross-border transactions. These legacy systems typically impose high fees, causing concern within the financial services industry as stablecoins gain traction. O’Leary noted legislative efforts, particularly the proposed Genius Act, which aims to create a regulatory framework for stablecoins in the U.S. This could stimulate global adoption as regulators in other jurisdictions follow suit. He emphasized that the financial services sector is actively opposing this legislation due to its potential to disrupt their established revenue models. As of mid-May, stablecoins have a market capitalization of nearly $250 billion, with Tether (USDT) and Circle’s USDC being the leading examples. O’Leary concluded by indicating that regulatory clarity around stablecoins might pave the way for broader cryptocurrency reforms, thus unlocking large amounts of institutional capital.

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