GENIUS Act Passage Signals Major Shift for Compliant Stablecoins
The U.S. Senate's passage of the GENIUS Act signals significant progress for stablecoins, according to a Canaccord research report. Key points include:
- Stablecoins are cryptocurrencies tied to assets like the U.S. dollar or gold.
- The GENIUS Act aims to enhance stablecoin innovation in the U.S. with bipartisan support.
- Compliant stablecoins could be recognized by the U.S. government as equivalent to cash.
- Potential use cases for stablecoins may expand beyond crypto trading pairs.
- Stablecoins can facilitate instantaneous and cost-effective transactions.
- They could become a major source of demand for short-term U.S. Treasuries.
- The adoption of compliant stablecoins may contribute to dollarizing the global economy.
- Increased stablecoin usage is expected to benefit the broader crypto industry.
Canaccord emphasized that stablecoins represent a programmable money layer on the internet, enhancing productivity and financial operations.