Stablecoins Set for Mainstream Role as U.S. Nears Landmark GENIUS Act Vote, Says Bernstein
Stablecoins are on the brink of a dramatic transformation, according to a new research note from Wall Street firm Bernstein, as the U.S. Senate prepares to vote on the GENIUS Act — a sweeping regulatory framework for digital dollar-pegged tokens.
The legislation, formally titled the Guiding and Establishing National Innovation for U.S. Stablecoins Act, is expected to pass within the coming months and would bring much-needed clarity to one of the fastest-growing segments in crypto.
Bernstein predicts that once enacted, the bill will shift stablecoins from niche financial tools into essential infrastructure for global digital commerce.
“Stablecoins will no longer just be crypto settlement instruments — they’re evolving into the money layer of the internet,” Bernstein wrote. The act is seen as a catalyst for mass adoption by both fintechs and mainstream platforms seeking programmable, instant settlement.
Under the new rules, stablecoin issuers managing over $10 billion in circulation will come under federal oversight. State regulators may supervise smaller issuers, provided they adhere to baseline federal standards.
Perhaps most notably, the GENIUS Act would restrict large non-financial entities — like Big Tech and major retailers — from launching their own stablecoins. Bernstein notes this would effectively block efforts by firms such as Amazon or Walmart to issue internal payment tokens.
However, these same companies could integrate regulated stablecoins issued by licensed financial firms, creating new business models in digital payments, loyalty programs, and global remittances.
By clearly defining stablecoins as digital cash and embedding consumer protection and compliance into the framework, the U.S. could emerge as a regulatory leader — enabling the next phase of internet-native finance.
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