💰 5 Fact Friday: Is The SPAC Back?

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CRYPTO
1. Stablecoins Earn The Senate Stamp 💵

The Senate just passed the GENIUS Act, a bill that gives the stablecoin world what it’s never really had: rules. Not vibes. Not promises. Real, boring, regulatory structure.

The bill now heads to the House and then the President’s desk. Prediction markets give it a ~93% chance of becoming law this year.

So, what are the ground rules?

• Every token must be backed 1:1 with U.S. dollar equivalents

• Monthly audits are mandatory

• Private keys and reserves must be held by federally supervised custodians

• Tokens can be frozen by lawful order (‼️)

• Individuals can self-custody

• The Treasury can block non-compliant coins from U.S. markets

“The bill clearly defines a stablecoin as a payment stablecoin, making its legal treatment closer to digital cash,” wrote Gautam Chhugani, analyst at Bernstein.

What edge does digital cash really have?

• Faster settlements (near-instant) 💸

• Reduced foreign exchange risk 🌍

• Lower fees (1% vs. 1.5–3%) 📉

No wonder 18% of Fortune 500 companies, including Walmart and Amazon, are already dabbling in crypto payments.

But how do you invest in an asset that’s... stable? You don’t buy the stablecoins—you buy the businesses that benefit from their rise.

1. Coinbase $COIN ( ▲ 4.43% ): The crypto company now earns over 50% of USDC revenue thanks to a deal with Circle.

2. Circle $CRCL ( ▲ 20.39% ): The issuer of USDC and the only compliant, publicly traded stablecoin company in the U.S. for now. Up 6.5x since its IPO… two weeks ago. (Maybe a bit frothy.)

3. Fintechs (like PayPal and Block): These players can now integrate stablecoin payments into their stacks. That’s good for margins—and bad news for the current payment duopoly. (Visa and Mastercard stocks slipped on the news.)

If the GENIUS Act becomes law, it could turn stablecoins into the financial plumbing behind everything from remittances to retail.

For crypto, that’s something a bit different: not sexy, not volatile—just useful.

STOCKS
2. Is The SPAC Back? 👀

The SPAC craze flamed out hard. But four years (and one ETF bloodbath) later, they might be creeping back.

Goldman Sachs, once a vocal SPAC quitter, just lifted its self-imposed ban and is underwriting blank-check deals again. Chamath’s even teasing a comeback—though Twitter replies were... less than enthusiastic.

Quick refresher: SPACs, or “special purpose acquisition companies,” are shell firms that raise money to buy a private business and take it public.

Effectively, they’re an IPO shortcut.

The process is faster, lighter on paperwork, and way friendlier to hype. Sponsors love them, too—SPAC backers typically pocket 20% of the deal, compared to 5-7% in a traditional IPO.

In 2020 and 2021, the SPAC hype ran wild.

• 2020: $80 billion raised

• 2021: $172 billion raised

But that stimmy-check-fueled growth wasn’t built to last. The crash came fast.

The AXS De-SPAC ETF ($DSPC), which launched in 2021 to track post-merger SPACs, promptly imploded. It sank 74% in 2022, dropped another 67% in 2023, and was eventually liquidated.

Turns out, many SPAC targets weren’t ready for prime time.

Now, with stocks looking pricey and regulations loosening, the SPAC ice is starting to thaw. So far in 2025, SPACs have raised $11B. Still a far cry from their peak, but the sequel may be getting started.

ECONOMY
3. The Fed Hits Pause, Again 🏦

The Fed held interest rates steady this week, sticking with the same 4.25% to 4.5% range it’s maintained all year.

While “wait and see” remains the mantra, this latest update revealed some contradictions and some cracks in the group.

Mixed Messaging

At Wednesday’s press conference, Chair Powell struck a surprisingly upbeat tone.

The "US economy has defied all kinds of forecasts for it to weaken," he said. “It feels much more positive and constructive than it did three months ago."

But that optimism didn’t quite match the data. In its updated Summary of Economic Projections, the Fed revised its 2025 forecasts to reflect:

• Inflation rising to 3.0% (up from 2.7% in March)

• GDP growth falling to 1.4% (from 1.7%)

• Unemployment ticking up to 4.5% (from 4.4%)

The message?

The Fed appears willing to sacrifice growth and jobs to keep inflation under control— perhaps a reaction to its infamous “transitory” misstep in 2021.

Signs of Division

The internal split is growing, too. While the baseline forecast still calls for two rate cuts this year, 7 of the committee’s 19 officials now expect none at all.

That divide likely hinges on how each member views tariffs.

If you expect tariffs to drive inflation higher, it makes sense to hold steady. But if you think they’re more of a bargaining chip—and likely to be resolved—then lower inflation and rate cuts start to look more realistic.

That might also explain the Powell–Trump disconnect.

Trump has been pounding the table for cuts, calling Powell “an American Disgrace.” For context, a 1% cut would:

• Lower mortgage rates

• Ease labor market pressure

• Slash federal interest payments by ~$100 billion per year

But for now, the Fed is staying the course.

REAL ESTATE
4. Homebuilders Pump The Brakes 🛑

In May, homebuilders started new construction at the slowest pace in five years. Permits, an early signal of future activity, also hit a five-year low.

It’s a clear sign of fading builder confidence, which just dropped to its third-lowest level since 2012.

And it’s not hard to see why.

There are now more homes for sale than at any point since 2019, but listings are sitting longer. Nearly half of active listings have been on the market for 60+ days, and one in five sellers have already slashed prices.

The real issue? Buyers have vanished.

With mortgage rates stuck above 6.5% and home prices up over 50% in the past five years, many would-be buyers are priced out. Even generous concessions, like cash back and free appliances, aren’t enough to overcome the affordability crunch.

Meanwhile, builders are getting squeezed. Construction costs are up 42% since the pandemic, labor is tight, and tariffs have introduced uncertainty.

Bottom line: buyers have the leverage—for now.

If you’re in the market and can afford it, this could be your moment. Zillow estimates the U.S. still faces a 4.5 million home shortage. This window won’t stay open forever.

STOCKS
5. Guess That Stock 🕵️‍♂️

This airline made its name by mixing low fares with high-end perks, but turbulence has hit from all sides. Can you name the stock?

1. This carrier tried to buy Spirit Airlines for $3.8 billion, but after a court blocked the deal, it walked away with nothing but a $69 million breakup bill.

2. With airfare down over 7% year-over-year, soft demand is squeezing margins. The company now says it’s unlikely to break even in 2025.

3. It’s cutting underperforming routes, grounding aircraft, and leaning into premium offerings—like lie-flat seats and first-class cabins on select routes.

4. The airline just signed a deal with United, allowing both to sell seats on each other’s flights and offer reciprocal frequent-flyer perks.

5. Known for free Wi-Fi, seatback TVs, and the most legroom in coach, this airline once ranked among the most beloved in the skies. Now, it’s battling just to stay aloft.

Got a guess? Tap here for the answer → 

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