Stablecoins are poised to become the default digital cash for the Internet. According to a Bernstein research note published Monday, the proposed Stablecoin GENIUS Act could establish the United States as the global epicenter of stablecoins.
The legislation, officially named the Guiding and Establishing the National Innovation for U.S. Stablecoins Act of 2025, is scheduled for a Senate vote this week. It is expected to pass by the end of summer.
The GENIUS Act aims to transform stablecoins from a crypto settlement tool into a mainstream financial rail.
“We expect stablecoins to evolve from the money rail of crypto to the money rail of the internet, driving transformative financial services buildout over the next decade,” the Bernstein report states.
The bill outlines a regulatory framework that allows banks, federally qualified non-bank issuers, and state-qualified entities to issue stablecoins while imposing strict compliance requirements on foreign issuers.
Stablecoins, defined as “payment stablecoins” under the Act, are designed for payment and settlement, maintaining a stable value backed by U.S. treasuries, repos, and demand deposits on a 1:1 basis.
The legislation treats them as digital cash, not securities or deposits, enabling their use as cash equivalents in accounting and capital market settlements.
“A payment stablecoin is treated as 1. Cash or a cash equivalent for accounting purposes,” the report notes.
The Act sets a high bar for non-financial public companies to issue stablecoins, requiring unanimous approval from a Stablecoin Certification Review Committee to ensure no risk to the U.S. banking system.
This could limit tech giants like Amazon AMZN and Walmart WMT, recently reported to be exploring stablecoins, to partnerships with regulated issuers rather than issuing their own.
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“The stablecoin partnerships could anchor around two dominant business models – adoption of an existing stablecoin already issued or enter into a white-label partnership,” Bernstein analysts suggest.
Banks issuing stablecoins could see adoption in corporate treasury, B2B supply chain payments, and cross-border settlements, though they must navigate impacts on traditional banking models.
The report emphasizes stablecoins’ potential beyond payments, stating, “Stablecoins are the native money-rail of the internet,” enabling a new financial stack on blockchain rails.
The GENIUS Act also prioritizes U.S. innovation by imposing stringent regulations on foreign issuers, giving domestic entities a competitive edge.
“The intent of the GENIUS ACT is to bring stablecoin innovation back to the U.S onshore from the offshore markets,” the report highlights.
Compliance with anti-money laundering and know-your-customer regulations is mandatory, aligning stablecoin issuers with banking standards.
Bernstein identifies key metrics for mainstream adoption, including growth in digital wallet users beyond the current 30-40 million, adoption by large internet businesses, and corporate use as a global medium of exchange.
“It is early days still and we are closely watching stablecoins cross the chasm into mainstream adoption,” the report states.
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