“This is the most useful form of money ever created. But we haven’t yet reached the iPhone moment, when developers everywhere fully grasp the power and programmability of digital dollars on the internet like they did with mobile devices. That’s coming soon,” Allaire wrote on X.

Regulatory Uncertainty and Industry Tensions

Allaire’s remarks come as the debate over the role of stablecoins in the U.S. financial system intensifies. Industry participants are divided over the risk that stablecoins could be monopolized or captured by political and commercial interests, particularly as regulatory momentum accelerates.

Just days ago, the U.S. Senate advanced the “Guiding and Establishing National Innovation for U.S. Stablecoins” (GENIUS Act)—a key bill aiming to set the legal and compliance framework for U.S. dollar-backed stablecoins.

Some critics, like X user Green Eyed Ghost, have warned that political influence could undermine the open nature of stablecoin development: “With Trump involved, stablecoins have become a captured industry. We must demand anti-capture amendments in the GENIUS Act. What’s happening now is anti-competitive and anti-democratic—this is the kind of corruption that accelerates democratic backsliding. The American public is watching. Don’t be complicit.”

French Hill, Chair of the House Financial Services Committee, has echoed concerns about conflicts of interest related to stablecoin projects linked to former President Trump, suggesting they could disrupt attempts to create a level playing field.

Competition, Innovation, and the Case for Open Stablecoin Infrastructure

Despite the controversy, advocates argue that stablecoins remain a catalyst for competition and innovation in global payments. Sam Broner, an investor at a16z crypto, responded to Allaire: “Stablecoins are better because they drive competition. Now anyone can program money—fintech innovation is no longer cost-prohibitive. More competition means better prices, experiences, and access.”

Other Web3 founders point to the paradigm shift in banking, as stablecoins reduce the need for large institutions and intermediaries. ReflectMoney’s Nico highlighted, “You no longer need hundreds or thousands of staff to manage deposits. Custody, mediation, and payments are managed by just a few lines of code. That’s a permanent change to the banking model.”

Echoing these points, Web3 developer LukeYoungblood.eth, involved in MoonwellDeFi and Mamo_agent, underscored that USDC’s competitive edge is not its rivalry with Tether, but its programmability and integration across more than 20 blockchains. “USDC is programmable money, mintable and burnable across networks. The real value is in $12 trillion of payments volume and the ability to enable instant cross-border settlements.”

Mass Adoption on the Horizon?

The debate coincides with rapid growth in stablecoin adoption and institutional interest. According to Coinbase, the number of global stablecoin users has surged to 161 million. U.S. Treasury Secretary Scott Bessent has forecasted that stablecoin capitalization could exceed $2 trillion in the near future—an order of magnitude leap that would redefine their role in global finance.

Whether the “iPhone moment” for stablecoins will come as swiftly as many expect depends on a delicate balance between regulatory clarity, competition, and the ability of developers to unleash new use cases beyond payments—reshaping the foundation of financial infrastructure in the process.