🚦 Stablecoins got the green

What’s going on here?

US Congress just approved the first federal rules for stablecoins – and that could send Wall Street’s banks racing to mint digital dollars.

What does this mean?

The so-called Genius Act is a win for crypto firms and big banks alike. JPMorgan, Citigroup, and others have been itching to roll out their own stablecoins: a type of digital currency that’s backed by more traditional assets like the US dollar. But with the murky rules around crypto in the US, so far they’ve held off. Now, the approval of this bill marks a sharp legal pivot for the States – not long ago, all things blockchain were getting stonewalled. But then crypto firms funneled millions into last year’s elections, and the sector’s had a warmer reception since. Markets clearly sensed the shift: the total value of crypto held topped $4 trillion this week.

Why should I care?

Zooming out: The dollar’s next act might be in code.

Most stablecoins are attached (or “pegged”) to the US dollar – so as the tokens spread globally, they’re gently boosting the clout of the greenback. That’s put central banks worldwide in a bind: embrace the trend and launch their own alternatives, or cede that influence to the States. And if the governments scrambling to respond with their own digital currencies don’t move fast, America could end up setting all the stablecoin rules.

For you personally: Crypto’s cracking open your retirement plan.

The main retirement account in the US – the good old 401(k) – tends to be a pretty vanilla mix of stocks and bonds. But the president is pushing to let it include crypto, gold, private equity, and more. That could open the floodgates to hundreds of billions of dollars for those alternative assets – and give everyday savers access to investments once reserved for big institutions and the ultra-wealthy. But fair warning: those types of investments are generally riskier, come with higher fees, and aren’t always easy to get out of.

What’s going on here?

Chinese carmakers have been revving up a new strategy: flood global markets with cheap EVs to try and swerve China’s ultra-busy domestic one.

What does this mean?

China’s auto industry is jammed with too many carmakers and not enough buyers. So EV makers like BYD have been shipping cars overseas at record speed, muscling into places like Mexico, South America, and the UAE. That’s led to the value of Chinese car exports tripling since 2022. And at the same time, the country’s carmakers have been slashing prices to grab market share. BYD’s leading the pack, dropping prices by a third. It’s aiming to overtake Tesla, reach the top of the sales leaderboard, and stay there. The formula’s simple: compete on price, win on scale, and keep the pedal down.

Why should I care?

For markets: It’s a small world after all.

The world’s carmakers are suddenly feeling pressure from two directions: inflation-weary buyers wanting value for money, and Chinese firms increasingly undercutting prices. Plus, their safety nets are disappearing, with EV subsidies and tax credits ending in the US and elsewhere. Now, Chinese carmakers are mostly blocked from the American market by steep tariffs, but their international pricing still sets a tone. And as global price wars heat up, legacy carmakers’ profits will likely suffer – as will their stocks.

Zooming out: The world’s getting China’s leftovers – whether it wants them or not.

Western firms have been inching out of China, setting up factories in Vietnam, Cambodia, and India to try and find geopolitical shelter. Meanwhile, many Chinese factories look more like ghost towns, propped up by local governments trying to avoid layoffs. That means more oversupply of cars and other goods, and more headaches for global competitors. Until China lets some firms consolidate or fail, the disruption – and the discounts – are probably here to stay.