[forvis mazars] Quarterly Insights: US Financial Services Regulatory Centre Q3 2025

Posted by:

Wei Xiang

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On:

October 31, 2025

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Stablecoin Mandate: Why 100% Backing Changes Everything

Q3 2025 marked a definitive pivot point for U.S. financial services: Regulation is actively laying the foundation for the digital asset economy.

Here’s the breakdown of regulatory shifts and why stablecoins are the core catalyst:

The economic climate demands caution:

Inflation remains sticky at 2.9%.
Unemployment is cooling the labor market, rising to 4.3%.
Regulators are streamlining oversight, focusing intensely on core safety and soundness (capital, liquidity, credit quality). Less emphasis is placed on broad thematic reviews.

The passage of the GENIUS Act in July 2025 created the first comprehensive federal framework for payment stablecoins.

This signals Congress’s stamp of approval for the technology.
Stablecoins are fundamentally different: they must be 100% backed by credit risk-free government securities.
This model, likened to a narrow bank, threatens to disintermediate traditional deposits.
Are banks prepared for disintermediation? Analysts warn that customers moving funds into regulated stablecoins could lead to trillions of dollars flowing out of bank deposit franchises.
Banks are “on notice” and must integrate digital asset services—by building, partnering, or leveraging consortiums—to compete.

As new payment rails emerge, compliance frameworks must keep pace.

Are your controls ready for high-velocity schemes? Fraudsters are blending traditional tactics with cutting-edge technology, surging the volume of suspicious activity.
Action Items:
- Integrate fraud and AML monitoring for ** real-time intelligence**.
- Expand digital asset sanctions screening capabilities to cover emerging payment rails like stablecoins.
- Establish clear AI and model governance to protect against bias and regulatory scrutiny when using advanced analytics.