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Forex Platforms Lobby Against Stablecoins Amid Disruption Fears

Stablecoins Face Pushback from FX Giants as U.S. Moves Toward Regulation

  • Global Forex and payments platforms are actively opposing stablecoins, according to investor Kevin O’Leary.
  • Stablecoins could lower costs and increase efficiency in cross-border payments, threatening traditional revenue streams.
  • U.S. lawmakers are working on a bill to regulate stablecoins, known as the Genius Act.
  • O’Leary and U.S. Senator Kirsten Gillibrand believe that stablecoin regulation could lead to broader crypto reforms.
  • As of May 15, stablecoins have a combined market value of nearly $250 billion, with Tether’s USDT and Circle’s USDC leading the market.

Global foreign exchange and payments companies are working to block the adoption of stablecoins, investor Kevin O’Leary said at the Consensus 2025 conference in Toronto. O’Leary explained that these platforms depend on collecting large fees from cross-border money transfers and could lose significant revenue if stablecoins, a type of cryptocurrency designed to keep a stable value, become widely accepted.

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Speaking at the event, O’Leary described currency trading as an “old and inefficient” multi-trillion dollar industry. He said, “The biggest threat to that monopoly or oligopoly is a regulated stablecoin. Once that’s approved, the multi-trillion dollar FX market becomes efficient, transparent, and inexpensive.”

O’Leary also noted that U.S. lawmakers are advancing stablecoin regulation through the so-called Genius Act, which they hope to pass by the end of May. He told the audience, “As soon as the SEC approves the stablecoin act, every regulator in the U.S.’s circle — Abu Dhabi, Switzerland, England — will follow.” He added that the financial services sector is strongly resisting these changes.

Senator Kirsten Gillibrand, speaking at a separate event, highlighted potential consumer protections and clearer rules as the legislation develops. She said, “When this language comes out, people will see really good refinement, a lot of progress, on things like consumer protection, bankruptcy protection, and ethics.”

According to CoinGecko data, the total stablecoin market was worth nearly $250 billion as of May 15. Tether’s USDT, pegged to the U.S. dollar, leads with a market cap of about $150 billion, followed by Circle’s USDC at over $60 billion.

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Policymakers and industry leaders suggest that stablecoin regulation could be the first step toward broader cryptocurrency reforms in the U.S., possibly unlocking new sources of institutional capital.

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