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The uptake of stablecoins among banks and financial entities in the United States might expedite following the enactment of recent legislation in the Senate.
The Guiding and Establishing National Innovation for US Stablecoins, or GENIUS Act, cleared the US Senate in a 68–30 vote on Tuesday, as reported by Cointelegraph. The legislation seeks to establish clear guidelines for stablecoin collateralization and enforce adherence to Anti-Money Laundering regulations. It now proceeds to the House.
The Senate decision sends a “strong affirmative message to institutions,” propelling the bill closer to realization, according to Katalin Tischhauser, head of investment research at digital asset bank Sygnum.
Multiple prominent banks and conventional financial institutions are planning to integrate stablecoins for transactions and settlements, Tischhauser informed Cointelegraph, adding:
“Clear regulatory frameworks and compliance pathways are essential, as is legal acknowledgment of stablecoins as settlement instruments.”
However, she noted that institutional usage of stablecoins might initially be confined to tokens issued on private blockchains.
Emerging developments in crypto policy and regulations regarding stablecoins are significant triggers for the 2025 crypto market cycle, stated Alice Li, investment partner and head of US at crypto venture capital firm Foresight Ventures, to Cointelegraph during the Chain Reaction X Spaces show on June 3.
“A leading factor is undoubtedly the policy alteration,” she remarked, alluding to US President Donald Trump’s Bitcoin reserve authorization and stablecoin policy advancements as primary motivators for Bitcoin (BTC) price increase in 2025.
Related: Stablecoin legislation expected to drive Bitcoin market cycle in 2025: Finance Redefined
GENIUS Act positions stablecoin issuers as “key players”
Complete congressional endorsement of the GENIUS Act will integrate stablecoins into the “US financial framework,” asserted Andrei Grachev, managing partner at Falcon Finance and DWF Labs.
“Should issuers begin holding significant amounts of Treasurys, that transforms their status from niche instruments to vital players in the economy,” Grachev remarked.
He further mentioned that treasury-backed stablecoins would instill greater confidence in institutions regarding their usage for settlements and payments.
Related: Jack Ma’s Ant International pursues stablecoin licenses in Singapore, Hong Kong
Financial institutions utilizing stablecoins have long been “functioning within a regulatory gray area, with scant concrete actions being taken due to ambiguity and lack of governmental direction,” according to Alex Buelau, co-founder of Rayls, the blockchain for banks collaborating with JP Morgan’s Kinexys blockchain infrastructure solution.
“Now that this is settled, institutions will not hesitate to engage, seizing the opportunities that stablecoins provide, especially in contexts of cross-border payments, continuous settlements, and enhancing global, onchain liquidity,” Buelau communicated to Cointelegraph.
On June 15, the investment banking giant JPMorgan Chase submitted a new US trademark application for “JPMD,” increasing speculation surrounding a potential stablecoin offering.
The application detailed services including digital asset trading, transfers, exchanges, clearance, and payment processing.
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