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Heisenberg’s Uncertainty Principle Is Unbreakable. These Physicists Found a Loophole
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Heisenberg’s Uncertainty Principle Is Unbreakable. These Physicists Found a Loophole

by admin September 24, 2025


Old physics wisdom can get comically simple. Take, for instance, the idea that bigger is generally better for complex science observatories. But there’s another one that researchers unknowingly gloss over, despite its impressive success rate: When a rule can’t be broken, don’t fight it. Just go around.

In a Science Advances paper published today, physicists did just that. The researchers found a way to sidestep Heisenberg’s uncertainty principle—a monumental rule dictating the elusiveness of quantum particles—to arrive at a “Goldilocks Zone” for uncertainty that allows scientists to extract only the most relevant information from a quantum system. This practical approach could greatly benefit future advances in quantum sensing for navigation, medicine, or astronomy, according to the researchers.

“We really exploit this concept of moving the uncertainty around,” Christophe Valahu, study lead author and a physicist at the University of Sydney in Australia, told Gizmodo during a video call.

If a particle was on a ruler, the new approach wouldn’t be measuring its exact location or momentum, Valahu explained. Instead, the idea is to measure something called the particle’s modular position and momentum, which are “different variables that give very much the same kind of information,” he said.

Skirting around Heisenberg

The Heisenberg uncertainty principle, introduced by the eponymous physicist in 1927, dictates that it is impossible to precisely lock down both metrics—location and momentum—at the same time. Simply put, there is a trade-off between the two that emerges as a fundamental behavior of measurements in quantum mechanics.

The new approach essentially “redistributes uncertainty in a way that benefits us,” Valahu said. It sacrifices “larger-scale, global” information—the particle’s actual position and momentum—for a sharper picture of tiny changes in a particle’s position and momentum. The latter information would be much more relevant for quantum sensing, which depends on quantum mechanical rules to detect and track tiny signals.

A quantum marriage

To validate this idea, the team recruited quantum computing experts to develop a protocol based on its approach and a 2017 paper outlining a similar strategy. In the end, the researchers arrived at an “engineered quantum system” inspired by both quantum sensing and quantum computing, according to Valahu.

“Quantum computing and quantum sensing are two sides of the same coin,” Valahu said. “One of them is trying to eliminate noise; the other one is trying to measure the noise or a signal. In theory, the better you can measure signal, the better you can correct for noise as well. So they often work hand-in-hand.”

Co-author Tingrei Tan (left) and his PhD student Vassili Matsos participated in another experiment that used the paper’s ideas on an actual quantum system. Credit: Fiona Wolf/University of Sydney

Specifically, they wanted to see if the new sensing technique could help the researchers distinguish tiny signals among the error-inducing noise in a quantum computer. To their delight, they successfully measured the modular position and momentum of a trapped ion inside the quantum computer.

“It’s a very fundamentally different way of looking at quantum sensing—using what were traditionally quantum error-correcting codes now for quantum sensing,” Valahu said. “We think this is an enabling technology [that may] spawn more metrological technologies [and transform] how we do current sensing. By “metrological technologies,” Valahu is referring to the scientific study of measurement and the various tools used to take precise measurements.

The literature on quantum technology is growing at astonishing speeds. It’s a great time to explore how different fields can come together to create innovative solutions, Valahu said. Many opportunities are appearing, and it’s hard to focus on a single one—but there’s little doubt we’re living at an exciting time for all things quantum.



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September 24, 2025 0 comments
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The Loophole Turning Stablecoins Into a Trillion-Dollar Fight
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The Loophole Turning Stablecoins Into a Trillion-Dollar Fight

by admin September 3, 2025


Crypto advocates see things differently. They claim stablecoin rewards create healthy market pressure and could drive big banks to provide more competitive interest rates in an effort to keep customer deposits.

“To call this a trillion-dollar fight would be an understatement: This is highly fraught territory that banks have jealously guarded,” says former Republican Representative Patrick McHenry of North Carolina, who served as Chair of the House Financial Services Committee until January 2025.

A study commissioned by Coinbase predicts a maximum decrease in banks’ deposits of 6.1 percent. Looking at community banks specifically, the report does not find a statistically significant effect on deposits under what it sees as likelier market-growth projections for stablecoins. Meanwhile, Dante Disparte, chief strategy officer and head of global policy at Circle, the issuer of USDC, has written that “today’s generation of successful stablecoins have increased dollar deposits in the U.S. and global banking system,” adding that the prohibition on interest from stablecoin issuers represents “a measure that would protect the deposit base.”

The Compromise

In the four years it took to push stablecoin legislation over the finish line, most lawmakers in Congress agreed that stablecoin issuers should not pay interest. “The drafters understood that [stablecoins are] a different kind of instrument: digital cash, a digital dollar, not a security instrument that provides a return,” says Corey Then, deputy general counsel of global policy at Circle.

In March, Coinbase CEO Brian Armstrong weighed in. On X, he suggested customers should be allowed to earn interest on stablecoins. He likened the arrangement to “an ordinary savings account, without the onerous disclosure requirements and tax implications imposed by securities laws.”

The rest of the story—as told by Ron Hammond, who recently worked as a senior lobbyist on behalf of the Blockchain Association, a prominent crypto industry group—goes something like this: Eventually, the banking industry agreed to a deal, which included the sought-after prohibition on stablecoin issuers paying interest. But the provision still left some room for crypto exchanges to provide users with a monetary incentive for holding stablecoins. Hammond says some crypto companies had hoped interest would be explicitly allowed, but prominent crypto groups were willing to agree to a compromise.

“The world of crypto, at the very least, was successful in getting language that opens the door for them to provide some type of reward that either is yield or something that resembles yield,” says McHenry, the former Chair of the House Financial Services Committee, who now serves as the vice-chair of Ondo, a blockchain-focused financial markets company.

The fact that banking industry groups are now sounding the alarm about stablecoins frustrates some crypto industry experts. “Raising concerns about stablecoin rewards at this stage feels disingenuous and overlooks the extensive debate that shaped the GENIUS Act,” says Cody Carbone, CEO of the Digital Chamber, a crypto-focused advocacy and lobbying group. “Banking industry representatives were fully engaged throughout the process, alongside crypto stakeholders, and the final language, which permits stablecoin-related rewards offered by exchanges and affiliated platforms, was a direct product of those discussions.”

A Second Chance

The crypto industry might have been willing to compromise in part because it didn’t want to expend too much political capital on a bill it viewed as a test case for broader crypto regulation. “The concern for the crypto industry was, ‘If we start having hiccups with the stablecoin bill—the easy bill—the odds of us getting past it significantly go down, and then the odds of us getting to the market structure bill are near zero for these next two years,’” Hammond says.

The bill he is referring to is what’s known as the CLARITY Act, which attempts to create a regulatory framework for products and financial platforms operating on the blockchain, much like the laws already governing traditional financial entities like stock markets, banks, and institutional investors. The act has passed in the House; a Senate version of the bill is expected in September. Days after the GENIUS Act was signed, Senate drafters of the CLARITY Act published a request for information that asks whether legislation should limit or prohibit systems like stablecoin rewards.



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September 3, 2025 0 comments
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U.S. banks move to amend GENIUS stablecoin Act over "loophole"
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U.S. banks move to amend GENIUS stablecoin Act over “loophole”

by admin August 25, 2025



Major banking groups in the United States are pushing to change certain provisions of the recently passed GENIUS stablecoin Act, citing concerns over aspects of the law that could affect the traditional financial industry.

Summary

  • U.S. banking groups are lobbying lawmakers to reconsider certain provisions of the GENIUS stablecoin Act.
  • Banks argue that the current structure creates an uneven playing field that could threaten the future of traditional financial institutions.
  • Crypto industry groups have pushed back, stating that the provisions are a necessary feature to support innovation and maintain consumer choice.

On Aug. 25, the Financial Times reported that U.S. banking groups are actively lobbying lawmakers to reconsider certain provisions of the GENIUS legislation.

Passed earlier in July, the GENIUS Act marked the first official stablecoin law in the United States, set out to regulate the billion-dollar market and maintain the country’s dominance in the sector. Part of the regulation prevents issuers from directly paying interest or yield to stablecoin holders, a measure intended to protect stability in the system.

This provision means that while banks can issue their own stablecoins, they are prohibited from offering any interest. In contrast, crypto exchanges can still provide rewards to holders of third-party stablecoins, such as Circle’s USDC (USD Coin) or Tether (Tether). The groups describe this provision as a “loophole” that indirectly favors crypto exchanges over traditional banks, warning that it could prompt customers to shift deposits from banks to platforms offering higher returns, creating an uneven playing field.

The groups cited an April Treasury report that estimated stablecoins offering yield could move as much as $6.6 trillion away from the traditional banking system, warning that such outflows could jeopardize the stability of the banking sector. 

However, representatives from the crypto industry have reportedly pushed back against the banks’ campaign, arguing that the concerns are overstated.

Crypto industry pushback: GENIUS Act “loophole” is not a flaw

Advocacy groups, including the Crypto Council for Innovation and the Blockchain Association, have argued that the “loophole” described in the GENIUS Act by the banks is not a flaw, but a necessary feature to maintain competition and innovation in the sector.

They contend that restricting exchanges from offering rewards to stablecoin holders would unfairly protect banks while limiting consumer choice. Industry figures like Coinbase’s chief legal officer, Paul Grewal, have also condemned the concerns, emphasizing that the industry should be allowed to evolve without unnecessary restrictions.

The GENIUS stablecoin has been celebrated as a regulatory milestone for the industry, championing the long-awaited clarity for the asset class. However, the ongoing dispute underscores the tensions emerging as rules take shape, highlighting the need for a careful balance to ensure both innovation and stability.



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August 25, 2025 0 comments
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