Analysis: After the passage of the "GENIUS Act," compliant stablecoins may become an important source of demand for short-term U.S. Treasury bonds.
ChainCatcher reports that brokerage firm Canaccord stated in a research report on Wednesday that due to regulatory uncertainties, the broader prospects for stablecoins (cryptocurrencies pegged to other assets) have so far been difficult to realize. However, the GENIUS Act passed by the U.S. Senate has changed this situation.
The full name of the act is the Guidance and Establishing National Innovation for US Stablecoins Act, aiming to bring stablecoin innovation back to the United States. The report notes that winning support in the Senate was much harder than in the House of Representatives. Given the bipartisan support for the act, U.S. stablecoin legislation is now within reach.
Analysts say that the prospects for stablecoins being used beyond crypto trading pairs may soon emerge as compliant stablecoins are effectively treated by the U.S. government as equivalent to cash. Given the need for full backing, compliant stablecoins could become a significant demand source for short-term U.S. Treasury bills. As the use of GENIUS-standard stablecoins expands cross-border, they may become a driving force behind the global economic dollarization.
Analysis: After the passage of the "GENIUS Act," compliant stablecoins may become an important source of demand for short-term U.S. Treasury bonds.
ChainCatcher reports that brokerage firm Canaccord stated in a research report on Wednesday that due to regulatory uncertainties, the broader prospects for stablecoins (cryptocurrencies pegged to other assets) have so far been difficult to realize. However, the GENIUS Act passed by the U.S. Senate has changed this situation.
The full name of the act is the Guidance and Establishing National Innovation for US Stablecoins Act, aiming to bring stablecoin innovation back to the United States. The report notes that winning support in the Senate was much harder than in the House of Representatives. Given the bipartisan support for the act, U.S. stablecoin legislation is now within reach.
Analysts say that the prospects for stablecoins being used beyond crypto trading pairs may soon emerge as compliant stablecoins are effectively treated by the U.S. government as equivalent to cash. Given the need for full backing, compliant stablecoins could become a significant demand source for short-term U.S. Treasury bills. As the use of GENIUS-standard stablecoins expands cross-border, they may become a driving force behind the global economic dollarization.
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