Are Payment Stablecoins Like Onions?

It is becoming increasingly likely that the "Guiding and Establishing National Innovation for U.S. Stablecoins Act of 2025'' (the ''GENIUS Act of 2025'' or the "Act") will become enacted and signed into law by the President in the summer of 2025.¹

As the contours of the regulatory regime for payment stablecoins ("PSCs") in the United States ("U.S.") take shape, a number of areas of uncertainty remain with how the Act will be implemented; what effect it will have on existing and future markets; and specifically what the future holds for "contracts for future delivery" on PSCs (i.e., futures contracts).

The key to this analysis lies in examining the definition of a PSC, and determining whether it qualifies as a "commodity," or if it is not a commodity, if that means trading in futures on PSCs will be prohibited. Because PSCs are intended to be used as collateral for commodity derivatives and securities trading, to ensure the safety and soundness of