US GENIUS Act Could Change Everything for Stablecoin Adoption

Key Takeaways

• The GENIUS Act cleared a major hurdle with strong bipartisan support in the Senate Banking Committee.
• If passed, the Act could legitimize stablecoins as trusted financial tools, encouraging adoption by banks, institutions, and major companies.
• Clear regulations would reduce uncertainty, protect consumers, and pave the way for mass stablecoin adoption in everyday digital payments.

On March 13, 2025, the U.S. Senate Banking Committee (SBC) approved the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act) with a strong bipartisan 18-6 vote.

This means that the GENIUS Act is now moving to the full Senate for debate and a final vote, a major move toward its potential enactment into law.

But how likely is it that the Act will pass? And if it does, what could it mean for the crypto market and mass adoption of stablecoins?

Could the GENIUS Act Become Law?

The GENIUS Act is a proposed U.S. law that aims to set some ground rules for how stablecoins should work.

In simple terms, stablecoins are digital currencies backed by real-world assets like the U.S. dollar. They’re a key part of the crypto world, but they’ve also been operating in a legal grey area.

So… is there a real chance the GENIUS Act will become law? Yes.

One major reason is the growing pressure for regulatory clarity. Everyone, from investors to policymakers, is calling for clear rules.

Without it, stablecoin issuers are left guessing, and that uncertainty pushes institutions away. It’s not just about compliance — it’s about trust. And right now, that trust is fragile.

The collapse of TerraUSD (UST) in 2022 was a wake-up call to start properly overseeing stablecoins. TerraUSD was an algorithmic stablecoin that used its sister token, LUNA, to peg to the dollar.

Without regulations or reserves, it quickly lost trust, triggered a panic sell-off, and eventually collapsed.

That’s where the GENIUS Act could have protected users. If passed, it could have set minimum safety standards, ensuring that only well-designed and properly backed stablecoins make it to the market.

Theoretically, the GENIUS Act is designed to protect consumers and create a level playing field. In practice, it might finally give crypto companies some regulatory footing they’ve been asking for, before innovation once again outruns the law.

Strong industry support is another factor that could help pass the GENIUS Act. Take Circle (USDC issuer), for example.

They’re publicly advocating for federal stablecoin regulation as soon as possible, and with big players backing it, lobbying for the Act’s passage becomes much easier.

The Influence of the GENIUS Act on the Crypto Market

If the GENIUS Act does make it through the Senate, it could reshape the entire crypto market in the U.S.

First, formal recognition of stablecoins could finally remove them from regulatory limbo. Instead of being treated as a liability, they’d be seen as legitimate financial tools—even in high-stakes environments like interbank settlements .

In practice, this could open the door for traditional financial institutions to use stablecoins like USDC.

JP Morgan’s Kinexys Digital Payments platform (formerly JPM Coin) is a good case. It’s already built for fast, cross-border payments between banks — precisely the kind of system that stablecoins could plug into.

And if regulation makes the rails more secure, institutions might finally be willing to ride them.

The Act could also dispel the myths around stablecoins and boost public trust. People could start seeing them as safe, legit, and well-supervised.

Remember when the SEC approved the first Bitcoin ETF? In Q2 2024, the SEC’s Form 13F fillings showed that 44% of asset managers increased their holdings in Bitcoin ETFs — solid proof that legal approval builds confidence.

And finally, the corporate side. If rules are clear, big U.S. companies might take up the baton and launch their own stablecoins. Right now, not only are big players in the game.

PayPal is already ahead with its PYUSD, but the GENIUS Act could help onboard companies.

Take Amazon, for example. They haven’t launched stablecoins yet, but they are reportedly working on integrating blockchain and digital payments behind the scenes.

Is Future Stablecoin Mass Adoption Possible?

Regulatory clarity changes everything. Once the rules are on paper, people stop wondering if stablecoins will be banned next week and start treating them like what they aim to be — reliable, dollar-pegged assets that can actually be used for payments.

That’s the difference between interesting tech and actual financial infrastructure.

And here’s where it gets practical. Think about your digital wallet working just like a debit card — except it holds stablecoins. No wild price swings, no second-guessing. Just fast, programmable money.

That’s not a far-off fantasy anymore. We’re getting closer to a point where paying with a stablecoin could feel just as normal as swiping a Visa.

The idea of mass adoption used to feel like marketing hype. But with regulation kicking in and companies watching closely for the green light, it’s starting to feel more like the next logical step.