This Week in Crypto: Stablecoins return, GameStop eyes BTC

Why is everyone launching stablecoins?

Stablecoins are back in the spotlight. This week alone, Donald Trump’s crypto venture World Liberty Financial (WLF), the traditional finance institution Fidelity, and even the state of Wyoming announced they plan to launch their own stablecoins. And they’re not alone; there’s a growing list of companies and institutions signaling they’re getting into the stablecoin game or launching stablecoin wallets.

So, what’s driving this renewed interest?

At the core, it’s a combination of government support, revenue potential, and a geopolitical push to solidify dollar dominance. For crypto companies, issuing a stablecoin is a revenue machine. When users swap billions of dollars for stablecoins, those funds don’t just sit in a vault. A significant chunk is parked in short-term U.S. government bonds that pay around 4–5% annually. That adds up quickly. For example, 5% of $10 billion in reserves is $500 million in passive income annually. And some of the largest stablecoin issuers—like USDC—have reserves well over the billion-dollar mark.

On the government’s end, stablecoins serve a different purpose: dollar dominance. At the inaugural White House Crypto Summit, Treasury Secretary Scott Bessent explicitly said, “We are going to keep the U.S. the dominant reserve currency in the world, and we’re going to use stablecoins to do that.”

The more stablecoins are used globally, the more demand there is for holding U.S. dollars in reserve. That means more purchases of U.S. Treasuries, greater dollar influence, and, ultimately, increased global power for the U.S. economy.

Although there’s a revenue opportunity for corporates and a strategic government push, regular users will still need a real reason to use stablecoins. Right now, there are a few scenarios where they make sense—exchanges need them for trading pairs and liquidity, traders use them as a safe haven when exiting volatile positions, institutions see them as useful for foreign exchange and transactional convenience, and a small niche of users prefers transacting in stablecoins instead of fiat—but that’s not enough to take stablecoins mainstream.

Innovation will need to occur, whether that be more offramps, more payment partners, or some added benefit over cash that makes stablecoins an actual upgrade or a tool that solves a problem in people’s lives. Otherwise, Stablecoins will stay a crypto-native tool used by a small group of traders while the rest of the world continues to ask: “Why do I need this?”

GameStop buys BTC

In an attempt to save the flailing company, GameStop (NASDAQ: GME) expressed its interest in accumulating BTC. The company announced that its board had “unanimously approved an update to its investment policy to add BTC as a treasury reserve asset.” They also modified their policy to allow investments in stablecoins.

The immediate response was a nearly 12% increase in $GME on the news. But the celebration didn’t last long.

The next day, GameStop revealed it would raise $1.3 billion via a private offering of convertible senior notes—basically IOUs that can be turned into GameStop stock—to help finance their BTC acquisition and other corporate purposes–this is when things began to unravel.

Investors weren’t thrilled about the debt play, and the stock tanked—dropping 6% pre-market and ending the day down almost 25%. To make matters worse, their earnings call earlier that week showed net sales had dropped 28% year-over-year for the period.

Honestly, this feels more like a PR stunt from GameStop than a strategic treasury move. “Bitcoin” is still a buzzword, and when companies publicly align themselves with it, they tend to get a short-term boost, which is exactly what GameStop got. 

This move echoes the Michael Saylor playbook: Acquire BTC, align yourself with the crypto crowd, and hope for long-term gains.

Interestingly, Saylor was spotted with GameStop CEO Ryan Cohen about a month before the announcement. So, it would not be a surprise to learn that Saylor had some influence on GameStop’s decision.

To be fair, Saylor’s strategy worked for MicroStrategy (NASDAQ: MSTR), which is up over 125% since it started buying BTC in 2020. But it’s also a high-risk play. Tying your company’s success to an asset you can’t control is a gamble. 

Trump’s pick for SEC Chair signals crypto support

The Securities and Exchange Commission (SEC) is potentially gearing up to welcome a new chairman, Paul Atkins, the nominee endorsed by President Trump. While crypto wasn’t the centerpiece of his confirmation hearing, Atkins made a point to mention digital assets in his opening remarks.

“Since 2017, I have led industry efforts to develop best practices for the digital asset industry. I have seen how ambiguous and nonexistent regulation creates uncertainty in the market and inhibits innovation. The top priority of my chairmanship will be to provide firm regulatory foundation for digital assets through a rational, coherent, and principled approach,” he said, a clear signal that he is crypto-friendly.

But what I find more interesting is that crypto wasn’t mentioned again after that opening remark. The rest of the hearing focused on broader issues—market structure, policy positions, and how Atkins would handle traditional securities regulation. Senators didn’t ask a single follow-up about digital assets, which is very revealing about the actual status of crypto in the U.S. economy.

Atkins knows where his support lies, especially as a Trump-endorsed nominee. He made sure to name-drop digital assets to show alignment with pro-crypto voters and crypto corporates. But the fact that no senators picked up the thread shows how low crypto still ranks on the list of national priorities in the securities and banking industry.

Watch: History of Bitcoin with Kurt Wuckert Jr.