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Treasury’s decision to exempt stablecoins from securities-law treatment, on the explicit reasoning that investment rules would undermine their payment function, is less a technical drafting choice than a preview of how the agency plans to resolve the harder foreign-issuer question still buried in its 60-day comment period.
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In Today’s Edition:
**Headline:Treasury Proposes Stablecoin GENIUS Act RulesQuick Bites:WLFI wins Bank CharterYield of the Week:**Apyx USDC’s 20.45% APY
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HEADLINE
**State of play: **Treasury’s proposal to exempt stablecoins from securities frameworks, reasoning that investment-law treatment would “frustrate” the law’s payment goals, sets up a foreign-issuer question determining whether Tether faces the same rules as domestic competitors.
Treasury proposed federal definitions for who qualifies as a US stablecoin issuer and what rules apply under the GENIUS Act.
The department opted against applying traditional securities law frameworks, arguing that approach could undermine stablecoins’ function as payment instruments.
The public has 60 days to submit comments, with a mid-October deadline, before Treasury reviews feedback and issues a final rule.
The GENIUS Act’s one-year implementation deadline passed last month, with the law’s effective date targeted for January 18.
The proposal arrives as the Clarity Act, which would rewrite GENIUS provisions on stablecoin rewards programs, remains stalled after failing to advance before Senate recess.
What’s Next: The 60-day comment period runs through mid-October, with foreign issuer treatment as the key question before Treasury finalizes rules ahead of the January 18 effective date.
**Why it Matters: **How Treasury defines foreign issuer obligations will determine whether Tether faces the same compliance burden as domestic competitors like Circle.
**Our Take: **Treasury’s rejection of securities-law framing is a deliberate industry-friendly choice, but punting dozens of interpretive questions to a comment period means the rules that actually matter are still months from settled.
QUICK BITES
First HK Stablecoinis livebut retail cannot touch it yet.US Treasury DepartmentproposesGENIUS Act stablecoin rule.WLFIwinsBank Charter from Trump-appointed regulator for $4B stablecoin.
YIELD OF THE WEEK
The vaultaccepts USDC deposits and exclusively supplies liquidity to Morpho markets collateralized by Apyx ecosystem tokens, with ~$6.31M in total deposits and ~$319.89k in available liquidity.Capital is primarily deployed into PT-apyUSD-27AUG2026/USDC (~$3.37M, 96.94% utilization) and PT-apyUSD-5NOV2026/USDC (~$2.80M, 96.44% utilization).
Yield is generated from lending demand across Apyx PT collateral markets, with individual market APYs ranging from 19.36% to 22.57%, net of an 8% performance fee and 0% management fee.
The marketaccepts USP deposits, a yield-optimized stablecoin governed by PikuDAO backed by a diversified basket of DeFi lending and delta-neutral FX strategies.Capital is deployed via Pendle Router through DEX swapping, with 1 USP converting to 1.12155 USDC at maturity, with native minting available through KYC and a 1-day native withdrawal wait.
Yield is generated from PikuDAO’s multi-strategy DeFi lending and FX yield portfolio, with the PT locking in a fixed 13.83% APY while YT holders capture remaining variable yield and points.
The vaultaccepts AUSD deposits and allocates capital across Morpho markets backed by tokenized real-world asset collateral with a focus on equity exposure, with ~$6.98M in total deposits and ~$796.5k in available liquidity.Capital is primarily deployed into sUSDat/AUSD (~$5.32M, 76.21% at 91.42% utilization) and PT-USDat-27AUG2026/AUSD (~$1.60M, 23.02% at 90.00% utilization), with a smaller allocation to wSPYx/AUSD at 90.00% utilization.
Yield is generated from lending demand across RWA-collateralized markets, with sUSDat driving the majority of returns at 14.20% APY, net of a 7.5% performance fee and 0% management fee.
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Disclaimer: All the information presented in this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice.
