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Fading QuicklySnapshot Window: 2026-09-26 00:20 UTC ยท โ Back to Crypto Overview
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Verbatim Community Citations & Social Evidence 1 source posts analyzed
Zhang and Zimmerman argue that The GENIUS Act permits firms to subject a firm's existing creditors (including the FDIC and taxpayers if the firm is a bank) to a functional dropdown by just issuing a stablecoin immediately prior to filing for bankruptcy:
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AI visual note: Academic paper titled 'Stablecoin-on-Creditor Violence' by Jeffery Y. Zhang (University of Michigan Law School) and Peter Zimmerman (Federal Reserve Bank of Cleveland), posted 23 Sep 2026, with an abstract discussing the GENIUS Act of 2025 and risks of stablecoin dropdowns.