SENATE APPROVES GENIUS STABLECOIN LEGISLATION, BOOSTING INSTITUTIONAL USE

The Senate has passed the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act in a 68–30 vote, sending the bill to the House for further consideration. The legislation aims to establish clear regulatory frameworks for stablecoin operations, particularly concerning collateralization and compliance with Anti-Money Laundering (AML) laws.

The vote represents a strong positive signal to financial institutions, according to Katalin Tischhauser, Head of Investment Research at Sygnum. “Numerous large banks and traditional financial institutions are planning stablecoin integrations for payments and settlements. Clear regulatory frameworks and compliance pathways are a necessity, as is legal recognition of stablecoins as settlement instruments,” she stated.

Institutional adoption may initially focus on stablecoins operating on private blockchains, suggests Tischhauser.

Law, Politics, Congress, Senate, Stablecoin — *Source: US Senate*

Cryptocurrency venture capital firm Foresight Ventures’ Alice Li views emerging stablecoin regulations, alongside President Trump’s Bitcoin reserve approval, as a primary catalyst for the 2025 crypto market cycle.

“One of the strongest drivers is definitely the policy change… referencing US President Donald Trump’s Bitcoin reserve approval and stablecoin policy developments as the main catalysts for Bitcoin (BTC) price upside in 2025.”

GENIUS Act Designated Key Players

Falcon Finance’s Andrei Grachev notes the bill’s passage positions stablecoin issuers as “key players” in the U.S. financial infrastructure. “If issuers start holding large amounts of Treasurys, that changes their role from niche instruments to key players in the economy,” he explained, highlighting potential benefits for institutional adoption.

Rayls founder Alex Buelau adds that the legislation addresses a previous regulatory gray area hindering financial institutions from fully utilizing stablecoins for cross-border payments and 24/7 settlements.

The recent filing by JPMorgan Chase for a “JPMD” trademark further fuels speculation regarding the bank’s planned stablecoin offering.