New US legislation could legitimize stablecoins for both governments and corporations, accelerating the rate of adoption

The US Senate’s approval of the GENIUS Act could mark a turning point for the global digital payments landscape. The legislation establishes the first clear regulatory framework for stablecoins, potentially catalyzing their adoption across the banking, retail, and fintech sectors worldwide.

Under the proposed rules, stablecoins must be fully backed by liquid assets, such as US dollars and short-term Treasury bills, with monthly disclosures of reserves – a move that could increase trust and drive institutional participation.

According to Osama Bari, CTO of D24 Fintech Group, “The GENIUS Act could become a defining moment for stablecoins. By delivering the clarity institutions need, it paves the way for major players, like banks and retailers, to enter the space with confidence.

“This isn’t just about crypto anymore. We’re witnessing the beginning of a broader trend where stablecoins are becoming the preferred rails for cross-border payments, global payroll, and even consumer retail,” Bari added. “From Stripe and PayPal to Walmart and Societe Generale, companies across sectors are already laying the groundwork. The GENIUS Act legitimizes this momentum.”

With global stablecoin market capitalization still under $260 billion, just a fraction of the $40 trillion cross-border payments market, analysts see significant room for growth. Companies including Bank of America, Amazon, and US Bank have all been reported to be exploring stablecoin issuance, pending regulatory clarity.

“Stablecoins offer tangible benefits in areas where traditional finance lags: 24/7 settlement, low-cost cross-border payments, and value stability in volatile regions,” said Bari. “In particular, emerging markets and fintechs serving international users stand to benefit from always-on liquidity and lower infrastructure costs.”

Governments are also taking note. France’s Societe Generale is launching its own publicly tradable stablecoin, and countries from China to the UK are advancing their own central bank digital currencies (CBDCs), the latter taking a more cautious approach, which are state-backed alternatives that mirror several stablecoin features.

Bari continued: “Whether it’s the private or public sector, the signal is clear: digital money is entering a regulated era. The GENIUS Act could do for stablecoins what the early internet regulations did for e-commerce, unlocking institutional confidence and driving mainstream adoption.

“As we enter this next phase, the distinction between crypto-native users and traditional finance customers will blur. Stablecoins may soon be less about speculation and more about infrastructure. And with regulation in place, the building can truly begin,” concluded Bari.

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