Fed Staff Note Exposes Stablecoin Double-Counting Risk as USDC Circulation Hits $72 Billion Under GENIUS Act: M1/M2 Classification Looms for Blockchain-Backed Assets
Over the past 7 days, a Federal Reserve staff note dropped on stablecoins, and the data anomaly hit like a zero-day exploit in the monetary supply chain. Same dollar appearing in reserve assets and M1/M2 at once. USDC alone sits at 71.826 billion in circulation, yet the note flags the exact overlap that could render 20 to 30 percent of reported supply illusory. This is not marketing fluff. This is silicon ghosts audited at protocol level, where blockchain issuance meets statistical classification for the first time at scale.