Is crypto growing up? Tether risk, Stripe’s stablecoin play, and the GENIUS Act explained

What It Covers

Jacquelyn Melinek, CEO of Token Relations, joins TechCrunch's Equity podcast to analyze crypto's current cycle: the GENIUS Act stablecoin legislation, Stripe's acquisition-driven payments strategy, Tether's shifting asset reserves, Robinhood's finance-specific blockchain launch, and where venture funding is concentrating as consolidation accelerates across crypto startups and funds.

Key Questions Answered

• •GENIUS Act timeline: The White House mediated closed-door sessions between banks and crypto companies over stablecoin yield rules, with a March 1 deadline for resolution. Banks cite deposit flight risk; crypto firms argue yield restrictions create competitive disadvantage. Compromise, not perfection, is the stated goal, and resolution is expected to accelerate the broader market structure bill.
• •Stripe's stablecoin stack: Stripe's 2025 strategy combines three acquisitions — Bridge for stablecoin infrastructure, Privy for wallet onboarding, and its Tempo payments blockchain — to serve 5 million-plus businesses. This vertical integration positions Stripe ahead of competitors who haven't pursued crypto infrastructure, giving it end-to-end control over stablecoin-powered payment flows at scale.
• •Tether reserve risk: Tether's asset mix is shifting away from US Treasury bills toward Bitcoin, gold, and structured loans, which now represent roughly a quarter of its portfolio. Its equity cushion is shrinking, and its $20 billion fundraise at a $500 billion valuation was scaled back to approximately $5 billion after investor pushback, signaling structural concern.
• •Purpose-built blockchains replacing general-purpose chains: Robinhood's chain attracted over 1 million wallets in its first Testnet week, targeting tokenized stocks for its 25 million users. Kraken's Ink chain and Stripe's Tempo follow the same pattern. Finance-specific chains built around existing user bases are replacing general-purpose blockchains as the dominant infrastructure model going forward.
• •Crypto funding consolidation: VC appetite for crypto has contracted sharply. Funds from the 2021–2022 vintage are struggling to raise new LP capital. Only funds with demonstrated returns — like Dragonfly's $650 million fourth fund — are closing successfully. Startups without product-market fit or revenue models face shutdown within 12–24 months as investor capital dries up across the sector.