US Senate Passes GENIUS Act: A Boost for Stablecoin Adoption

The Facts -

Recent legislative developments in the United States could significantly boost the adoption of stablecoins among banks and financial entities. The Senate's approval of the GENIUS Act marks a turning point, signaling an imminent shift in how these digital assets are viewed and utilized within the financial sector.

The Guiding and Establishing National Innovation for US Stablecoins, known as the GENIUS Act, successfully passed the Senate with a 68–30 vote, as reported by Cointelegraph. This legislation aims to provide a clear framework for stablecoin collateralization while enforcing strict compliance with Anti-Money Laundering laws. The bill now moves forward to the House for consideration.

Katalin Tischhauser, head of investment research at digital asset bank Sygnum, highlighted the vote as a “strong positive signal to institutions,” inching the bill closer to becoming law. She revealed that various major banks and financial institutions are exploring stablecoin integrations for payment systems, emphasizing the necessity for “clear regulatory frameworks and compliance pathways, as is legal recognition of stablecoins as settlement instruments.” However, she noted that usage might initially be confined to tokens on private blockchains.

Alice Li, investment partner and head of US at Foresight Ventures, noted during the Chain Reaction X Spaces show on June 3 that the current developments in crypto policy and stablecoin regulations are pivotal for the 2025 crypto market cycle. She stated, “One of the strongest drivers is definitely the policy change,” referencing key policy developments such as President Donald Trump’s approval of a Bitcoin reserve and advancements in stablecoin regulations as significant factors for potential Bitcoin price increases in 2025.

GENIUS Act Designates Stablecoin Issuers as “Key Players”

Andrei Grachev from Falcon Finance and DWF Labs commented that if the GENIUS Act receives full congressional approval, stablecoins could become an integral part of the United States financial infrastructure. Grachev observed that if issuers begin holding substantial amounts of Treasurys, their status would shift “from niche instruments to key players in the economy,” providing institutions with more assurance in their use for settlements and payments.

In the words of Alex Buelau, co-founder of Rayls, institutions have been operating under uncertainty due to a “regulatory gray area,” but the passing of the GENIUS Act removes much of this ambiguity. This clarity is likely to spur institutions to capitalize on stablecoin opportunities, particularly in cross-border transactions and 24/7 settlements, significantly enhancing global, on-chain liquidity.

On June 15, the financial landscape saw further developments as JPMorgan Chase filed a new US trademark application for “JPMD,” signaling potential stablecoin service offerings. As detailed in the filing, services might encompass digital asset trading, transfer, exchange, clearing, and payment processing.

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