Main Points：
- US Senate invoked cloture on the GENIUS Act stablecoin regulation bill with a 68–30 vote, moving it toward a final floor vote.
- The GENIUS Act represents the first comprehensive federal framework for stablecoin oversight, enjoying bipartisan support.
- Billionaire investor Paul Tudor Jones recommended that portfolios include Bitcoin, gold, and equities to hedge against anticipated high inflation.
- Latest US Consumer Price Index (CPI) data showed a 2.4% year-over-year increase for May, influencing market and policy outlooks.
- Total stablecoin supply surged to $247 billion by May 2025, reflecting rapid market growth and evolving use cases.
- Circle’s recent IPO underscored institutional demand, with its shares surging to $116.66 on debut.
- Societe Generale announced the upcoming launch of its USD CoinVertible stablecoin on Ethereum and Solana.
- Analysts forecast the stablecoin market could expand to $2 trillion by 2028, contingent on regulatory clarity.
- Portfolio strategies integrating volatility-adjusted Bitcoin, gold, and equities may offer optimal inflation protection.
Senate Cloture Vote Propels GENIUS Act Toward Final Passage
On June 11, 2025, the US Senate voted 68 to 30 to invoke cloture on the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, effectively ending debate and setting the stage for a final roll-call vote. This procedural victory marks the first time the Senate has moved so decisively on major crypto legislation, illustrating a significant shift from past reluctance . The cloture vote limited further discussion to 30 hours, meaning the final passage vote could occur as early as June 12 or 13, 2025.
GENIUS Act: A Milestone for Federal Stablecoin Oversight
The GENIUS Act seeks to establish clear federal standards for stablecoin issuers, requiring them to be insured depository institutions, maintain 100% reserves, and adhere to consumer-protection and anti–money laundering rules. Sponsored by Senators Cynthia Lummis (R-WY) and Kirsten Gillibrand (D-NY), the bill garnered bipartisan support by including amendments addressing Democratic concerns around financial stability and presidential conflicts of interest. If enacted, it would pre-empt state-level patchwork regulations, positioning the US as a leader in stablecoin innovation and oversight.
Paul Tudor Jones Champions Bitcoin as an Inflation Hedge
Billionaire macro investor Paul Tudor Jones has reiterated that Bitcoin (BTC) should be included in every investment portfolio to hedge against looming inflation risks. Speaking in a June 11, 2025, interview, Jones argued that the US is trapped in mounting debt and that policymakers will likely allow inflation to run hot to mitigate real debt burdens. He suggested that combining volatility-adjusted allocations of Bitcoin, gold, and equities would form “probably the best portfolio to fight inflation.”
US Inflation Remains Sticky at 2.4% YoY
The Bureau of Labor Statistics reported that the all-items Consumer Price Index (CPI) rose 2.4% year-over-year in May, up from 2.3% in April, but still slightly below analyst expectations. Core CPI, which excludes food and energy, held steady at 2.8% YoY. While headline inflation remains moderate, the data reinforce concerns that debt-financed fiscal policies and tariffs could prolong elevated price pressures, underscoring Jones’s call for inflation hedges.
Stablecoin Supply Rockets to $247 Billion
Stablecoin market capitalization has surged to $247 billion as of May 2025, up nearly 54% year-over-year. This rapid growth—equivalent to roughly 10% of US currency in circulation—stems from increased use in trading, cross-border settlements, and DeFi applications. On-chain transaction volumes for stablecoins reached $20.2 trillion through May 2025, a 46% jump from the same period in 2024. Despite concerns about regulatory gaps and illicit flows, market participants view stablecoins as essential plumbing for the broader crypto ecosystem.
Circle’s IPO Underscores Institutional Appetite
Circle Internet Group’s NYSE debut in early June 2025 was met with robust demand: shares opened at $31 and surged to $116.66 by the end of the first trading session, quadrupling the IPO price. The $1.1 billion upsized offering valued Circle at over $22 billion, highlighting investor confidence in stablecoin revenue models based on interest income and transaction fees. This milestone also reflects a broader institutional embrace of blockchain-native payment infrastructure.
Societe Generale Enters the Stablecoin Arena
Major European bank Societe Generale announced plans to launch USD CoinVertible, a dollar-backed stablecoin, via its crypto subsidiary SG-FORGE in July 2025. Built on Ethereum and Solana, with BNY Mellon custodianship for reserves, the initiative follows SG-FORGE’s earlier euro-denominated stablecoin with limited uptake (€41.8 million in circulation). The bank aims to leverage CoinVertible for trading, cross-border payments, FX settlements, and collateral management, signaling growing mainstream adoption of blockchain-based financial instruments.
Growth Forecast: A $2 Trillion Stablecoin Market by 2028
Analysts at Standard Chartered estimate that, with regulatory certainty such as the GENIUS Act, stablecoin market cap could expand to $2 trillion by 2028, up from $247 billion today. U.S. Treasury Secretary Janet Yellen and other policymakers have urged Congress to codify federal rules to sustain demand for Treasuries via secure stablecoin reserves. Industry reports suggest that clearer regulations would unlock broader institutional usage, including corporate treasury operations and central bank digital currency (CBDC) integrations.
Crafting the Optimal Inflation-Hedged Portfolio
In light of regulatory and macroeconomic developments, portfolio managers are reevaluating asset mixes. As Paul Tudor Jones recommends, combining volatility-adjusted weightings of Bitcoin, gold, and equities can enhance risk-adjusted returns while shielding against rising CPI. For example, a model portfolio might allocate 5–7% to Bitcoin, 3–5% to gold, and the balance to diversified equities, rebalancing quarterly to account for Bitcoin’s higher volatility. Such a framework aligns with institutional trends toward alternative hedges in an era of unconventional monetary policy.
Conclusion
The convergence of robust stablecoin regulation and renewed macro hedge strategies marks a pivotal juncture for the crypto landscape. With the GENIUS Act poised for a final Senate vote, the US could deliver the clarity that industry advocates have long sought, potentially catalyzing stablecoin adoption across trading, payments, and decentralized finance. Concurrently, thought leaders like Paul Tudor Jones underscore the necessity of Bitcoin in modern portfolios, bolstered by persistent inflationary pressures and elevated public debt. As institutional innovations—from Circle’s market debut to Societe Generale’s CoinVertible—validate blockchain’s maturity, savvy investors and developers will find fertile ground for pioneering new assets, revenue streams, and practical applications across the financial ecosystem.
