{"id":129713,"date":"2025-05-21T14:15:43","date_gmt":"2025-05-21T14:15:43","guid":{"rendered":"http:\/\/cryptospotters.net\/?p=129713"},"modified":"2025-05-21T14:15:43","modified_gmt":"2025-05-21T14:15:43","slug":"genius-act-legitimizes-stablecoins-for-global-institutional-adoption","status":"publish","type":"post","link":"http:\/\/cryptospotters.net\/?p=129713","title":{"rendered":"GENIUS Act \u2018legitimizes\u2019 stablecoins for global institutional adoption"},"content":{"rendered":"<p>Source: Cointelegraph.com NewsStablecoin adoption among institutions could surge as the United States Senate prepares to debate a key piece of legislation aimed at regulating the sector.<br \/>\nAfter failing to gain support from key Democrats on May 8, the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act passed the US Senate in a 66\u201332 procedural vote on May 20 and is now heading to a debate on the Senate floor.<br \/>\nThe bill seeks to set clear rules for stablecoin collateralization and mandate compliance with Anti-Money Laundering laws.<br \/>\nRelated: German gov\u2019t missed out on $2.3B profit after selling Bitcoin at $57K<br \/>\n\u201cThis act doesn\u2019t just regulate stablecoins, it legitimizes them,\u201d said Andrei Grachev, managing partner at DWF Labs and Falcon Finance.<br \/>\n\u201cIt sets clear rules, and with clarity comes confidence. That\u2019s what institutions have been waiting for,\u201d Grachev told Cointelegraph during the Chain Reaction daily X spaces show on May 20, adding:<br \/>\n\u201cStablecoins aren\u2019t a crypto experiment anymore. They\u2019re a better form of money. Faster, simpler, and more transparent than fiat. It\u2019s only a matter of time before they become the default.\u201d<br \/>\nSource: CointelegraphSenate bill seen as path to unified digital system<br \/>\nThe GENIUS Act may be the \u201cfirst step\u201d toward establishing a \u201cunified digital financial system which is borderless, programmable and efficient,\u201d Grachev said, adding:<br \/>\n\u201cWhen the US moves on stablecoin policy, the world watches.\u201d<br \/>\nRepublican Senator Cynthia Lummis, a co-sponsor of the bill, also pointed to Memorial Day as a \u201cfair target\u201d for its potential passage.<br \/>\nGrachev said regulatory clarity alone will not drive institutional adoption. Products offering stable and predictable yield will also be necessary. Falcon Finance is currently developing a synthetic yield-bearing dollar product designed for this market, he noted.<br \/>\nYield-bearing stablecoins issuance. Source: PendleYield-bearing stablecoins now represent 4.5% of the total stablecoin market after rising to $11 billion in total circulation, Cointelegraph reported on May 21.<br \/>\nRelated: Stablecoins seen as ideal fit for real-time collateral management<br \/>\nGENIUS Act regulatory gaps don\u2019t address offshore stablecoin issuers<br \/>\nDespite broad support for the GENIUS Act, some critics say the legislation does not go far enough. Vugar Usi Zade, the chief operating officer at Bitget exchange, told Cointelegraph that \u201cthe bill doesn\u2019t fully address offshore stablecoin issuers like Tether, which continue to play an outsized role in global liquidity.\u201d<br \/>\nHe added that US-based issuers will now face \u201csteeper costs,\u201d likely accelerating consolidation across the market and favoring well-resourced players that can meet the new thresholds.<br \/>\nStill, Zade acknowledged that the legislation could bring greater \u201cstability\u201d to regulated offerings, depending on how it is ultimately worded and enforced.<br \/>\nMagazine: Crypto wanted to overthrow banks, now it\u2019s becoming them in stablecoin fight<a href=\"https:\/\/cointelegraph.com\/news\/genius-act-legitimizes-stablecoins-institutional-adoption?utm_source=rss_feed&amp;utm_medium=rss&amp;utm_campaign=rss_partner_inbound\" target=\"_blank\" class=\"feedzy-rss-link-icon\" rel=\"noopener\">Read More<\/a><\/p>","protected":false},"excerpt":{"rendered":"<p>Source: Cointelegraph.com NewsStablecoin adoption among institutions could surge as the United States Senate prepares to debate a key piece of legislation aimed at regulating the sector. After failing to gain&hellip; <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"_links":{"self":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/129713"}],"collection":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=129713"}],"version-history":[{"count":0,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/129713\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=129713"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=129713"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=129713"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}