The U.S. Senate recently passed the "American Stablecoin National Innovation Guidance and Establishment Act" (GENIUS Act), marking a significant reduction in regulatory uncertainty surrounding stablecoins. This bill aims to promote stablecoin innovation, legalizing and regulating them in the United States. Analysts believe that stablecoins will serve not only as assets in cryptocurrency trading pairs but may also become cash equivalents. Due to the bill's requirement for full reserves, compliant stablecoins could substantially increase demand for short-term U.S. Treasury securities. Furthermore, with global adoption of GENIUS-compliant stablecoins, the process of dollarization may accelerate, further enhancing the U.S. dollar's global influence. The report, released by Canaccord, emphasizes the potential impact of this legislation on the stablecoin market and the U.S. financial system.

It is stated that after the GENIUS Act, which the US Senate recently passed, stablecoins that are compliant with the regulations could become a significant source of demand for short-term US Treasury bonds. In the research report published today by Canaccord, it was emphasized that the future of stablecoins has not been clear for a long time due to regulatory uncertainties. However, this uncertainty has been significantly reduced with the passage of the “Guidance and Establishment of the United States Stablecoin National Innovation Act”, or GENIUS Act, by the Senate. According to the report, the Senate passage of this bill, which aims to bring stablecoin innovation back to the US, was a much more difficult process than it was to pass in the House of Representatives. However, the bipartisan support for the bill suggests that stablecoin regulation in the US is now very close.  Analysts say it’s only a matter of time before stablecoins are used as cash equivalents, not just in cryptocurrency trading pairs. With the U.S. government treating these assets like cash, it’s predicted that compatible stablecoins could significantly increase demand for short-term Treasury bonds due to the full reserve requirement. Additionally, it is assessed that with the global adoption of GENIUS-compatible stablecoins, the dollarization process could accelerate and these digital assets could further strengthen the global influence of the US dollar. *Not investment advice.

The U.S. Senate passes the GENIUS Act, marking a major breakthrough in stablecoin regulation.

The U.S. Senate passes the GENIUS Act, marking a major breakthrough in stablecoin regulation.