Stablecoins Set to Transform into the 'Internet's Money Network' Following LEGAL Reforms: Insights from Bernstein
Bernstein anticipates the imminent passage of the GENIUS Act, which will likely usher in a new era for stablecoins, positioning them as integral to internet transactions.
Key Insights:
- Bernstein suggests that the U.S. is poised to enact stablecoin regulations within a few months.
- According to Bernstein, once these laws are implemented, stablecoins will transition into a leading monetary system on the internet.
- Reports indicate that the GENIUS Act will provide advantages to U.S.-based regulated issuers.
The Senate is preparing to vote on the GENIUS Act, a significant piece of legislation pertaining to U.S. stablecoin regulations, which is expected to be passed soon.
Stablecoins are cryptocurrencies whose value aligns with a stable asset like the U.S. dollar or gold. They hold vital importance within the crypto market, serving various purposes including payment structures and international money transfers.
Once enacted, the GENIUS Act is expected to facilitate the transformation of stablecoins from a cryptocurrency settlement method to becoming a principal transaction mechanism for the internet.
This act, which stands for Guiding and Establishing National Innovation for U.S. Stablecoins Act, aims to reinvigorate stablecoin innovation domestically. Furthermore, it stipulates federal oversight for stablecoins exceeding a $10 billion market cap and allows for potential state regulations that align with federal standards.
The legislation also treats stablecoins as digital cash. Its objective is to broaden mainstream usage beyond mere settlement for digital assets, as Bernstein notes.
Notably, the GENIUS Act prohibits non-financial public companies from issuing stablecoins, which impacts recent discussions around major players like Amazon and Walmart exploring such cryptocurrencies.
If e-commerce and tech companies plan to adopt these currencies, they will be encouraged to collaborate with regulated U.S. issuers instead of creating their own stablecoin solutions.
Read more: Stablecoins to Go Mainstream in 2025 After U.S. Regulatory Progress: Deutsche Bank
