GENIUS Act legitimizes stablecoins for global institutional adoption
Stablecoin adoption among institutions is expected to increase as the US Senate debates the GENIUS Act, which passed a procedural vote with 66–32 support. The bill aims to establish regulations for stablecoin collateralization and enforce compliance with Anti-Money Laundering laws. It is viewed as a step toward legitimizing stablecoins and creating a unified digital financial system. Republican Senator Cynthia Lummis suggests Memorial Day as a potential target for passage. However, critics argue the bill does not adequately address offshore stablecoin issuers like Tether, which could lead to higher costs for US-based issuers and market consolidation. Despite this, the legislation may enhance stability in regulated offerings. Yield-bearing stablecoins have grown to represent 4.5% of the total market, amounting to $11 billion in circulation.
