What Will Be the Impact of the Upcoming Major Bullish Cryptocurrency Bill in the US?

It is stated that after the GENIUS Act, which the US Senate recently passed, stablecoins that are compliant with the regulations could become a significant source of demand for short-term US Treasury bonds.

In the research report published today by Canaccord, it was emphasized that the future of stablecoins has not been clear for a long time due to regulatory uncertainties. However, this uncertainty has been significantly reduced with the passage of the “Guidance and Establishment of the United States Stablecoin National Innovation Act”, or GENIUS Act, by the Senate.

According to the report, the Senate passage of this bill, which aims to bring stablecoin innovation back to the US, was a much more difficult process than it was to pass in the House of Representatives. However, the bipartisan support for the bill suggests that stablecoin regulation in the US is now very close.

Analysts say it’s only a matter of time before stablecoins are used as cash equivalents, not just in cryptocurrency trading pairs. With the U.S. government treating these assets like cash, it’s predicted that compatible stablecoins could significantly increase demand for short-term Treasury bonds due to the full reserve requirement.

Additionally, it is assessed that with the global adoption of GENIUS-compatible stablecoins, the dollarization process could accelerate and these digital assets could further strengthen the global influence of the US dollar.

*Not investment advice.

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