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The stablecoin lobbying wars are heating up in the US...

The crypto sector — led by groups like the Crypto Council for Innovation and the Blockchain Association — is actively opposing efforts from major banking lobbies to amend the recently enacted GENIUS Act.

The key areas driving the dispute:

Section 16(d): This provision allows state-chartered institution subsidiaries to issue stablecoins across state lines without extra licensing requirements. Banking groups want it repealed, but crypto advocates argue that removing it would reintroduce a fragmented regulatory regime hindering interstate commerce.

Yield-Bearing Stablecoin Programs: The banking lobby wants to ban yield programs offered by affiliates of stablecoin issuers, citing risks to traditional bank deposits and credit flows. Crypto proponents counter that payment stablecoins are not bank deposits and do not fund loans.

Crypto groups believe that repealing these provisions will favor incumbent banks (which I think is true) at the expense of innovation and consumer choice. Their argument is that financial competition deserves space to thrive, particularly for underserved and underbanked consumers.

What are your thoughts?

Please find another week of fintech exits and deep reads below.

Have feedback for us? Let us know. Find me at @nikmilanovic, @twifintech, and @ndm

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Reads of the Week

The financial times this week dug into a surprising new trend over the past year: neobanks increasingly want to become telecoms groups. Monzo, Revolut, Nubank, N26, and Klarna are all getting into the mobile plan game by buying network capacity from mobile network operators such as EE and selling it on to retail customers. Why? Well – mobile resellers tend to earn £10 per user per month, and pay £3 in wholesale charges. For companies with an existing customer base, it could be a valuable add-on.

I also enjoyed Ayo Omojola's monthly writeup, Stablecoins are not for Americans. They’re for everyone else, which I think gets to the meat of the 'so what' question that Americans frequently ask when it comes to stables. The US is already a decently developed and saturated fintech market – not so for cross-market products and emerging markets.

Lastly, I enjoyed the speech given by Federal Reserve Vice Chair for Supervision Michelle W. Bowman this week, Embracing Innovation.

Exits

IPOs & SPACs

• Figure Technology filed for an IPO after the blockchain-based lending company, which uses its Provenance blockchain to facilitate home equity, mortgage refinance, student, and personal loans, reported that its revenue rose 22.4 % to $191 million in the six months ending June 30 and it posted a $29 million profit, overturning a $13 million loss from the prior year.
• Gemini filed for an IPO after the New York-based crypto exchange and custodian bank, founded by the Winklevoss twins and offering services such as a U.S. dollar-backed stablecoin and a rewards-in-crypto credit card, revealed in its S-1 that it had brought in $142.2 million in revenue with a $158.5 million net loss for 2024 and already exceeded that loss with a $282.5 million net loss on $67.9 million in revenue for the first six months of 2025.

M&A - Fintech

• Deluxe acquired CheckMatch for $25 million, adding digital check delivery to its Deluxe Payment Network.
• Circle acquired Malachite to power Arc, its upcoming stablecoin-focused blockchain, with terms undisclosed.
• Kraken acquired Capitalise.ai to integrate no-code, AI-driven trading automation into Kraken Pro.
• Carlyle acquired Intelliflo, a wealth-management software provider, for an undisclosed sum.
• Electronic Merchant Systems (EMS) acquired Paysley, an omnichannel payments platform that will continue as an independent brand.
• Fifth Third Bank acquired DTS Connex, a cash-management software provider, for an undisclosed amount.
• CSI agreed to acquire Apiture to unify digital banking services, with closing expected in late 2025.
• Starling Bank acquired Ember, a tax and bookkeeping startup, for under £10 million to enhance SME offerings.
• First Eagle Investments closed a majority investment from Genstar Capital, while managing $161 billion in assets.

M&A - Banks and Financial Institutions

• Mediobanca dropped its €6.8 billion (≈ $7.9 billion) bid for Banca Generali after shareholders rejected the offer, thwarting its strategy to create Italy’s second-largest wealth manager and fend off a hostile takeover by Monte dei Paschi.
• Evelyn Partners is targeting potential buyers NatWest and RBC for its UK wealth-management arm as its private-equity owners prepared for a sale.

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