I remain agnostic on the merits of stablecoins versus the traditional forms of digital money but I have been trying to educate myself. In that spirit I used a couple of Large Language Models to prepare a report on the the GENIUS Act and the CLARITY Act that together will define how the USA intends to regulate these instruments
The GENIUS Act, enacted in 2025, establishes prudential standards for stablecoin issuers, requiring one-to-one reserves and bank-like oversight to protect consumers. Its legislative partner, the CLARITY Act, seeks to organize the broader market by defining jurisdictional boundaries between the SEC and CFTC. The report emphasizes that while issuance is now governed by federal law, ongoing debates regarding interest-bearing stablecoins and Federal Reserve access remain critical hurdles.
I have attached the report for anyone else who might find it a useful reference point. I have done my best to check the results but it comes with the obvious disclaimer that it may still contain errors. The report started with a prompt I developed using “prompt cowboy” that I then fed into Claude to process. I then fed the Claude report into Gemini to fact check and I also used an AI tool called “refine” that has been developed to review papers for logical consistency.
Using these combined fact checking resources, I found at least ten major errors so the final draft is substantially better than Claude’s first effort but I encourage anyone using it to perform their own fact checking.
Tony – From the Outside
From the outside 