What are Stablecoins?

In this episode of Protecting and Preserving Wealth, we dive into the rapidly evolving world of stablecoins and why they matter for the future of digital finance. Bruce and Jason Hosler break down what stablecoins are, how they differ from other cryptocurrencies, and why the recently passed GENIUS Act is a game-changer for the space.

We begin by clarifying that stablecoins aren't just another cryptocurrency. Unlike cryptocurrencies, which are known for their volatility, stablecoins are pegged to the US dollar or backed by US treasuries. This makes them more stable in value, and importantly, useful for real-world applications like instant, low-cost transactions on the blockchain. We explain how stablecoins serve as a bridge between traditional currency and the speed and efficiency of blockchain technology.

A major focus is the GENIUS Act — short for Guiding and Establishing National Innovation for US Stablecoins — which was passed in July 2025 and becomes effective in 2027. This legislation provides a critical regulatory framework for stablecoins, including mandatory third-party audits of reserves and consumer protection measures. By ensuring that every stablecoin is fully backed by real-world assets, the GENIUS Act brings confidence and legitimacy to this technology, opening the door for broader adoption.

We also explore how stablecoins eliminate the need for traditional banking infrastructure. You can transfer funds globally 24/7 for a fraction of the cost of traditional wire transfers. The implications are massive, especially for people in countries with unstable currencies or limited access to US dollars. And with major financial players like Visa already integrating stablecoins into their payment systems, this isn't hypothetical — it's already happening.

Jon draws a parallel between stablecoins and podcasting, comparing how both have democratized access — one to finance, the other to media. The analogy holds as we discuss how stablecoins make it easier and cheaper for anyone with internet access to interact with digital dollars.

We close by emphasizing that this is just the beginning. Part two of this series will cover the practical applications of stablecoins in everyday life. For now, we want our listeners to walk away with a better understanding of how this financial innovation works, why it’s growing so fast, and how regulation is finally catching up to support it.

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⏱️Chapters & What You'll Learn
(00:00) Welcome & Introduction
(00:31) What Exactly Are Stablecoins
(01:56) Backing, Value, and How They Work on Blockchain
(04:30) Real-World Uses — Payments, Speed & Lower Fees
(07:32) The GENIUS Act & New Regulations
(10:02) Global Adoption and What’s Coming Next

For more information about anything related to your finances, contact Bruce Hosler and the team at Hosler Wealth Management: Visit us online at https://www.hoslerwm.com/

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