Momentum is building in Washington as both the House and Senate released updated drafts of their stablecoin bills in March 2025 — the STABLE Act in the House and the GENIUS Act in the Senate.

The current narrative claims that tokenization will solve many financial problems, which may or may not be true. Stablecoins cause net new money issuance, just like banks. The current stablecoin trajectory poses significant questions about how they interface with the traditional fractional reserve banking system — where banks keep only a fraction of deposits as reserves while lending out the rest, effectively creating net new money.

Spring is coming... 🌸

Money matters, that much is clear. However, its characteristics and essence are distinct subjects, essential for anyone interested in material welfare or the financial system. As such, a historical exploration is both necessary and revealing, not only for understanding money’s role in the past and present but, more importantly, for shaping how we think about it in the future.

Money, mortgages, savings, and transactions: These things matter to all of us. Yet, most of us never stop to ask: Is the system underpinning these things even sound? Given the clear instability, they probably should. 

A deep dive on how to think about stablecoins and use cases.