Investors have piled into crypto stocks in recent sessions after the US Senate passed the GENIUS Act with a decisive 68-30 vote, marking a significant milestone in stablecoin legislation.

What the bill essentially does is establish a federal framework for private firms to issue stablecoins under strict regulations, including full reserve backing and monthly audits.

While the GENIUS Act still needs approval from the House before it becomes a law, the legislation is already hurting traditional payment stocks like Visa Inc and Mastercard Inc.  

Why? Because this bill, if it becomes a law, could make it more appealing for global merchants to switch from conventional card payments to stablecoins for transactions.

Why is GENIUS Act a threat for Visa and Mastercard?

Senate’s approval of the GENIUS Act poses a meaningful threat to card companies like Visa and Mastercard as it could establish stablecoins as compliant, mainstream instruments for payments.

If stablecoins are backed by liquid assets and audited regularly, as proposed in the aforementioned bill, businesses may begin to prefer them for transactions to avoid interchange fees and processing delays.

In fact, retail behemoths like Amazon and Walmart Inc are already warming up to launch their own stablecoins – potentially bypassing Visa and Mastercard fees entirely – and losing business from giants like these could deal a significant financial blow to both.

The GENIUS Act prohibits yield on consumer stablecoins, but vests regulatory control within the Treasury, offering clearer oversight.

That threatens the stranglehold Visa and Mastercard hold over everyday transactions and settlement processes.

While some would argue that consumers still value credit card rewards and protections, emergence of compliant, low-fee stablecoins backed by regulatory clarity could gradually reduce dominance of incumbent networks.

Are stablecoins already being used actively for transactions?

What’s also worth mentioning is that stablecoins are already being used for transactions, and that too, at scale.

In 2024, stablecoins saw transaction volumes surpass $27 trillion, outpacing the combined volume on Visa and Mastercard – a landmark indicator of their growing usage.

In Q1 this year, stablecoins continued to dominate those two payment networks, with over $1.4 trillion in transaction volume seen in a single month (May).

More importantly, stablecoin usage is expanding well beyond crypto trading. More than 20% of stablecoin transaction volumes are now tied to payments, not trading.

According to American Banker, just under half of the surveyed corporate treasurers say they are using stablecoins for operational payments, while another 23% are piloting them.

Reportedly, weekly stablecoin transfers now average more than $500 billion, surpassing Visa by over 60%.

These facts and figures confirm stablecoins are no longer niche – they’re actively being used for high-value transfers, remittances, and commerce – all of which could become a significantly more pronounced challenges for the likes of Visa and Mastercard if the GENIUS Act becomes a law. 

The post How big is the threat to Visa, Mastercard as Senate passes key stablecoin bill? appeared first on Invezz

European stock markets opened broadly lower on Thursday, with the regional Stoxx 600 index retreating as investors continued to grapple with heightened geopolitical tensions between Israel and Iran and the looming possibility of US involvement in the conflict.

Despite the generally negative sentiment, the oil and gas sector, along with telecommunications, showed some resilience.

The trading day began on a decidedly cautious note across the continent.

The pan-European Stoxx 600 index was down 0.63% in early dealings, reflecting a clear risk-off sentiment among global investors.

This downturn was widespread, with most sectors trading in negative territory as market participants closely monitored the volatile situation in the Middle East.

The ongoing tensions, which have seen direct exchanges between Israel and Iran, and persistent speculation about potential US intervention, have kept financial markets on edge.

This uncertainty is prompting investors to reassess risk and, in many cases, reduce exposure to equities.

Bright spots emerge: energy and telecoms swim against the tide

Despite the overarching negativity, there were a few notable exceptions.

Energy stocks continued their upward trajectory, with the Stoxx Oil and Gas index climbing 0.8%.

This strength in the energy sector is a direct consequence of rising crude oil prices, which have been driven higher by concerns over potential supply disruptions stemming from the Middle East uncertainty.

ICE Brent Crude futures were last seen trading up 0.83% at $77.33 a barrel, underscoring the market’s sensitivity to geopolitical developments in key oil-producing regions.

The telecommunications sector also managed to nudge slightly higher against the broader market decline.

A significant contributor to this was Vodafone, whose shares rose by 1%.

The positive momentum for the telecom giant came after it announced that Pilar López would be joining the company as its new chief financial officer, effective from October.

López will be moving to Vodafone from Microsoft, a high-profile appointment that appears to have been well-received by investors.

The divergent performance – with defensive sectors like oil and gas gaining while most others fall – highlights the complex interplay of geopolitical risk, energy market dynamics, and company-specific news currently shaping European equity markets.

The post European stocks open lower amid Israel-Iran tensions; oil prices rise appeared first on Invezz

A cohort of Democratic lawmakers from Texas has formally requested that Tesla postpone the highly anticipated launch of its robotaxi service in Austin.

The legislators are urging the electric vehicle giant to delay the rollout until September, when a new state law governing autonomous driving is scheduled to come into effect, citing concerns over public safety and the need to build public trust.

In a letter sent on Wednesday, the group of Austin-area lawmakers argued that delaying the launch, which Tesla CEO Elon Musk had “tentatively” suggested could happen as early as this Sunday, “is in the best interest of both public safety and building public trust in Tesla’s operations.”

They emphasized the importance of aligning the robotaxi service with the forthcoming state regulations.

Should Tesla decide to proceed with its launch this month, thereby predating the new law, the lawmakers have asked the company to provide “detailed information” demonstrating precisely how Tesla intends to comply with the new state legislation once it is operational.

Tesla did not immediately respond to a request for comment on the lawmakers’ letter.

This request comes at a pivotal moment for Tesla.

Last year, Elon Musk publicly staked the company’s future heavily on the success of its autonomous-driving technology, signaling a strategic pivot away from solely chasing rapid growth in electric-vehicle sales.

The impending Austin robotaxi rollout has been under intense scrutiny from investors and analysts, many of whom attribute a significant portion of Tesla’s stock market valuation to the high hopes pinned on its yet-to-be-delivered robotaxi services and humanoid robots.

Navigating a shifting legal landscape in Texas

The political and legal context for this request is noteworthy.

It remains unclear how much influence a letter from Democratic lawmakers will exert in Texas, a state where Republicans control the governorship and hold majorities in both legislative chambers.

Under current Texas law, autonomous-vehicle companies are permitted to operate their vehicles anywhere in the state, provided the vehicles meet basic registration and insurance requirements.

However, new legislation, which successfully passed the Texas legislature last month but has not yet been signed by the governor, is set to change this landscape.

This new law would, for the first time, require autonomous-vehicle companies to apply for specific authorization to operate within the state.

Crucially, the new legislation would grant state authorities the power to revoke permits if they deem a driverless vehicle to be one that “endangers the public.”

Furthermore, companies like Tesla would be required to provide the state with comprehensive information on how police and first responders can effectively interact with and manage these autonomous vehicles in emergency situations.

Scant details on Tesla’s Robotaxi blueprint

Elon Musk first announced in January that Tesla would be offering “autonomous ride-hailing for money in Austin, in June.” Since that pronouncement, details about the planned Austin robotaxi launch have been sparse.

Musk has indicated that the initial rollout would begin with a small fleet of 10 or 20 Model Y vehicles and that the company would initially operate in “only the parts of Austin that we consider to be the safest.”

However, key operational details—such as who the initial passengers will be, how Tesla will charge for rides, the specific areas of Austin where the service will operate, and the extent of remote monitoring and operation of the vehicles—have not yet been disclosed by Musk or Tesla.

This lack of transparency likely contributes to the lawmakers’ call for a more cautious and legally aligned approach.

The post Red light for Tesla robotaxis? Texas Democrats urge launch halt appeared first on Invezz

The possible US strike on Iran has become a hot topic worldwide, dominating headlines and global discussions

Trump’s recent remarks have indicated that the United States is thinking seriously about joining Israel’s conflict with Iran. 

The Israel-Iran conflict, which is entering its first week now, has witnessed some intense exchanges of missiles, which have killed many innocent civilians on both sides. 

But a possible US strike can change the game completely, as it may widen the conflict, with experts even expecting countries like China or Russia to react. 

So far, Donald Trump has been ambiguous about his plans, as on Tuesday he claimed that he knew where Iran’s supreme leader is hiding and demanded his ‘unconditional surrender.’

“I may do it, I may not do it. I mean, nobody knows what I’m going to do. I can tell you this, Iran’s got a lot of trouble, and they want to negotiate. And I said, Why didn’t you negotiate with me before all this death and destruction,” the US President told reporters at the White House on Wednesday.

US strike may force China, Russia to show teeth

As the situation remains sensitive, Invezz news spoke with a few experts to gauge what a possible US strike on Iran could mean for geopolitics. 

Professor Harsh V Pant, Vice President – Studies and Foreign Policy at Observer Research Foundation, said that a US strike will complicate things further as Iran has already warned about retaliation. 

However, he sounded more concerned about how the US strike may widen the conflict may even draw China and Russia into the game. 

“A US strike on Iran will force the Islamic nation to take strong countermeasures, and there will be widening of the conflict in some fundamental ways.”

The expert further added that so far, the conflict is regional, but the involvement of the United States can spiral it into global tensions. 

“With the US entering into it, other powers like China and Russia might also be willing to play their hands in the conflict.” 

Professor Pant mentioned that choking off the critical Strait of Hormuz can be part of Iran’s countermeasures, apart from an attack on US personnel and military assets in the Middle East.   

US is already involved in Israel-Iran conflict

Dr. Martand Jha, Doctoral Fellow at Russian and Central Asian Studies, School of International Studies, Jawaharlal Nehru University hinted that the US strikes are much closer than expected. 

He said that the Donald Trump administration is already involved in the conflict, and as the war continues, the Middle East region is losing its stability. 

“The involvement of the US in the Israel-Iran conflict is already there for everyone to see. The alliance between the US and Israel has a chequered legacy to it,” Dr. Martand said. 

Dr. Martand added that the US is deeply involved in the conflict, as any great power would be. While emphasizing on the stakes of the conflict, the expert warned about the ripple effects of continuing instability in the Middle East. 

The post US strike on Iran could draw in China, Russia, experts warn appeared first on Invezz

The Switzerland National Bank (SNB) cut interest rates by 25 basis points to 0% on Thursday, deepening its dovish stance amid renewed concerns over deflation and persistent strength in the Swiss franc.

The widely anticipated move raises the possibility of Switzerland revisiting negative interest rates for the first time since 2022.

“With today’s easing of our monetary policy, we are countering the lower inflationary pressure,” President Martin Schlegel said in Zurich.

“We will continue to monitor the situation closely and adjust our monetary policy if necessary” he said, adding that “we remain willing to be active in the foreign exchange market as necessary.”

Why is Switzerland facing deflation?

While most global central banks remain focused on taming inflation, Switzerland stands apart.

Consumer prices in the country fell by 0.1% year-on-year in May due to persistent disinflationary forces.

The SNB is now trying to curb a deflationary cycle that has plagued the economy in past decades.

The appreciation of the Swiss franc has been a key driver of these deflationary trends.

Often seen as a safe-haven currency, the franc tends to gain during periods of global economic or political uncertainty.

That in turn makes imports cheaper, dragging down the consumer price index in a country heavily reliant on foreign goods.

“As a safe-haven currency, the Swiss franc tends to appreciate when there is stress on world markets,” said Charlotte de Montpellier, senior economist at ING.

This systematically pushes down the price of imported products. Switzerland is a small, open economy, and imports account for a large proportion of CPI inflation.

SNB sets itself apart from global peers

The SNB’s rate cut stands in contrast to the more cautious tone adopted by other major central banks.

On Wednesday, the US Federal Reserve left interest rates unchanged, and the Bank of England was expected to follow suit.

The European Central Bank, having recently cut rates, has also signalled a pause.

By lowering its benchmark rate to zero, the SNB now holds the lowest policy rate among major developed economies.

This places Swiss banks under renewed pressure, as income from customer deposits vanishes and lending margins shrink.

The SNB is also testing an interest rate level it has never used before—neither during its descent into negative territory in 2014 nor during its exit in 2022.

Economists say this could mark a transitional phase ahead of a deeper dive below zero.

Will Switzerland return to negative interest rates?

Martin Schlegel acknowledged that the new policy rate brings borrowing costs “to the verge of negative territory,” and warned of the potential side effects such a move could bring.

“We are also aware that negative interest can have undesirable side effects and presents challenges for many economic agents,” he said.

Economists at ODDO BHF forecast another 25 basis point cut as early as September.

“The return of negative rates aims to curb the appreciation of the Swiss franc and boost domestic credit,” the firm said, adding that the SNB may reintroduce exemption mechanisms to shield domestic banks.

Some analysts even see the potential for deeper cuts.

Adrian Prettejohn, Europe economist at Capital Economics, told CNBC ahead of Thursday’s interest rate decision that he expects rates to be cut to -0.25% this year, but noted that the SNB could go even lower.

There are risks that the SNB will go further in the future if inflationary pressures don’t start to increase, and the lowest the policy rate could go is -0.75%, the rate it reached in the 2010s.

Currency market interventions are also back on the table. While the SNB avoided such moves in 2023, it remains under scrutiny.

Earlier this month, the US Treasury added Switzerland to its watchlist of economies for foreign exchange practices, warning against currency manipulation—a charge previously leveled during Donald Trump’s first term.

Inflation forecasts revised down as risks linger

Adding to the dovish tone, the SNB lowered its inflation projections across the board.

It now expects inflation to average just 0.2% in 2025, 0.5% in 2026, and 0.7% in 2027—revised down from earlier forecasts of 0.4%, 0.8%, and 0.8% respectively.

While recent increases in oil prices, driven by tensions between Israel and Iran, could provide some near-term relief, the broader outlook remains weak.

Switzerland’s unusually strong currency, muted consumer demand, and fragile global trade suggest that price pressures will stay low for the foreseeable future.

The post Switzerland cuts rates to zero: are negative interest rates coming back? appeared first on Invezz