Visa CEO Backs GENIUS Act for Stablecoin Regulation

Visa CEO Ryan McInerney has voiced his support for the GENIUS Act, a recently passed legislation by the U.S. Senate that establishes a regulatory framework for stablecoins. This act is seen as a pivotal moment for the cryptocurrency industry, as it provides the first federal guidelines for payment stablecoins. Under the GENIUS Act, only approved and well-supervised entities will be allowed to issue stablecoins, ensuring a higher level of oversight and security.

McInerney's endorsement of the GENIUS Act comes at a time when stablecoins are gaining traction as a viable alternative to traditional payment methods. The act defines stablecoins as digital assets backed by reserves, typically in the form of U.S. Treasuries, which are held by large issuers. This regulatory clarity is expected to foster greater adoption and integration of stablecoins into mainstream financial systems.

Speaking on CNBC’s Squawk on the Street, McInerney emphasized that the legislation provides much-needed regulatory clarity that will help unlock new innovation across the payments industry. He noted that Visa has been embracing stablecoins for a long time, having already built solutions using stablecoin infrastructure and continuing to explore new global use cases.

Addressing concerns that large companies like Amazon or Walmart could issue their own stablecoins and compete directly with Visa, McInerney was unshaken. He emphasized Visa’s unmatched global reach and trust factor, stating that Visa stands out with 5 billion cards, 14 billion tokens, and over 150 million businesses using its network. He noted that even today, people can pay with digital dollars, and that stablecoins are not a threat—they’re an opportunity.

Visa’s long-standing partnership with Circle, the issuer of USDC, was also highlighted. McInerney confirmed that these collaborations will expand, as Visa continues to integrate regulated stablecoin payments into its infrastructure. He believes that the real transformative potential of stablecoins lies in emerging markets, where stablecoin-powered payments can offer financial inclusion and global accessibility—especially when connected to Visa’s trusted rails.

The passage of the GENIUS Act is part of a broader effort to define the regulatory landscape for cryptocurrencies. The legislation also addresses the classification of crypto assets, specifying when they are considered commodities or securities. This distinction is crucial for crypto exchanges, which will now have the option to register with the Commodity Futures Trading Commission (CFTC), reducing the regulatory burden imposed by the Securities and Exchange Commission (SEC).

Visa, as a leading player in the payment industry, sees stablecoins as both a manageable risk and a potential opportunity. The company has been actively embracing stablecoins, integrating them into its payment systems to enhance efficiency and reduce costs. This move aligns with the broader trend of financial institutions adopting blockchain technology to streamline transactions and improve security.

The regulatory framework established by the GENIUS Act is also likely to attract more investment and innovation in the stablecoin space. With clear guidelines in place, companies are more inclined to explore the development and launch of their own stablecoins, further driving the growth of this emerging technology. The act's provisions for large issuers and U.S. Treasury-backed reserves provide a level of stability and trust that is essential for widespread adoption.

In summary, the GENIUS Act represents a significant step forward in the regulation and integration of stablecoins into the global financial system. Visa's support for the act underscores the company's commitment to embracing new technologies and adapting to the evolving landscape of digital payments. As stablecoins continue to gain traction, they are poised to become a key component of the financial infrastructure, offering faster, more secure, and cost-effective transaction solutions.