The GENIUS Act could turn stablecoins into 'a part of the financial infrastructure of the United States'.

The passage of a new law in the United States Senate is expected to make a strong push for the adoption of stablecoins in the traditional banking and financial system.

According to Bitcoin Magazine, the "Guidance and Establishment of a National Innovation Framework for US Stablecoins" (GENIUS Act) has been passed by the Senate with a vote of 68 in favor and 30 against. This bill sets forth specific regulations regarding collateralized assets for stablecoins, while also requiring issuing organizations to strictly comply with anti-money laundering regulations (AML). The bill is currently awaiting further consideration by the House of Representatives.

Katalin Tischhauser, director of investment research at digital asset bank Sygnum, said the vote sends a "strong positive signal" to investors and financial institutions, bringing the GENIUS Act closer to becoming law. She also revealed that many large banks and financial institutions are planning to integrate stablecoins into the payment and settlement process, provided that the legal framework is clearly established and the stablecoin is legally recognized as a payment instrument. However, the initial application will likely be limited to private blockchains.

In the Chain Reaction X Spaces program held on June 3rd, Ms. Alice Li – Investment Partner and Head of the U.S. Department at Foresight Ventures – asserted that changes in cryptocurrency policy and the issuance of a stablecoin regulatory framework will be important catalysts for the cryptocurrency market growth cycle in 2025.

She emphasized: "One of the biggest driving factors is the change in policy," while pointing out the support for Bitcoin reserves from President Donald Trump and the developments in stablecoin regulation as the main drivers for Bitcoin's rise.

GENIUS Act turns stablecoins into a part of the U.S. financial infrastructure

According to Mr. Andrei Grachev, CEO of Falcon Finance and DWF Labs, if the GENIUS Act is comprehensively passed by Congress, stablecoins will officially become part of the financial infrastructure of the United States.

He stated: "If issuers start holding large amounts of U.S. Treasury bonds, their role will shift from a niche financial instrument to key factors in the economy." This will help strengthen the confidence of financial institutions in using stablecoins for payments and settlements.

Mr. Alex Buelau, co-founder of Rayls – a blockchain serving banking, in collaboration with JPMorgan's Kinexys system – stated that financial institutions previously operated in a legal gray area due to a lack of clear guidance from the government. Now, with a clearer legal framework, organizations will boldly tap into the potential that stablecoins offer, especially in cross-border payments, 24/7 settlements, and enhancing global liquidity on-chain.

Notably, on June 15, JPMorgan Chase – one of the world's largest financial corporations – filed a new trademark application in the United States for the name "JPMD". Records show that the bank is preparing to deploy a stablecoin-related solution, with services including digital asset trading, transfers, exchanges, payments, and transaction data processing.

Mr. Giao