GENIUS Act Passes Senate Boosting U.S. Stablecoin Demand 20%

On June 18, a brokerage firm released a research report stating that the regulatory uncertainties have made the broader outlook for stablecoins challenging. However, the passage of the "GENIUS Act" by the U.S. Senate has brought a significant change. The full name of the act is the "Guidance and Establishing National Innovation for U.S. Stablecoins Act," which aims to bring stablecoin innovation back to the United States. The act has gained bipartisan support, making U.S. stablecoin legislation more likely to be realized.

Analysts have suggested that the prospects for stablecoins beyond their use as crypto trading pairs may soon emerge. This is because compliant stablecoins are effectively being recognized by the U.S. government as equivalent to cash. Given the need for full backing, compliant stablecoins could become a significant source of demand for short-term U.S. Treasury bills. As the use of stablecoins that meet GENIUS standards expands cross-border, they could serve as a driving force for global economic dollarization.

According to the analyst's forecast, the passage of the "GENIUS Act" could lead to a significant increase in the demand for short-term U.S. Treasury bills. This is because compliant stablecoins, which are backed by U.S. Treasury bills, could become a major source of demand for these securities. As the use of stablecoins expands, they could serve as a driving force for global economic dollarization, as they are effectively recognized by the U.S. government as equivalent to cash.