The U.S. Senate passed the GENIUS Act with an overwhelming majority. U.S. Treasury Secretary Benson wrote that stablecoins will help strengthen the dollar's hegemony and become an important source of funds for U.S. debt. The potential market size in the next few years is 3-4 trillion U.S. dollars, ten times the current size. Circle, the world's second largest stablecoin USDC issuer, successfully went public, with a 600% increase in just a few days, igniting the enthusiasm of the global encryption industry. Countless traditional financial institutions want to get a piece of the pie. Some are making stablecoins, some are making Ethereum versions of MicroStrategy, and some are making SOL, TRX, SUI and other versions of MicroStrategy. It's really lively.
Jason, an analyst at StarEx Exchange, believes that the landmark legislative breakthrough not only redefines the legal status of stablecoins, but is also likely to ignite a new round of "crypto bull market" - this time the engine is no longer hype and fantasy, but the reconstruction of institutional dividends and financial order.
The Senate's passage of the Guidance and Establishment of a National Innovation Stablecoin in the United States (GENIUS) Act is undoubtedly a turning point for the U.S. crypto industry. As the first crypto-core legislation passed by the Senate in U.S. history, the GENIUS Act not only builds a clear federal licensing and regulatory framework, but also formally recognizes payment stablecoins as a type of "digital cash," opening the door for them to enter the mainstream payment and settlement market.
Crypto-related stocks such as Circle, Coinbase, and Robinhood surged in response. The "first stock" of stablecoin, Circle, soared 600% after its listing. Behind this is the market's enthusiastic response to the huge value released by "regulatory clarity."
The GENIUS Act states that only institutions approved by the federal government can legally issue stablecoins for payments, and issuers must provide 1:1 legal currency guarantees, be audited, and comply with capital and liquidity regulations. This will transform stablecoins from "gray assets" to "digital cash recognized by financial institutions" and may gradually replace inefficient systems such as SWIFT and correspondent banking in traditional cross-border payments. The industry predicts that once GENIUS becomes a federal law, technology giants such as Apple, Google, Meta, and Airbnb will also enter the market to issue their own branded stablecoins, and "compliant dollars" will flow into every corner of the world through smartphones, becoming a new financial "operating system."
Jason, an analyst at StarEx Exchange, believes that one of the greatest significances of the bill is that it builds a bridge between "traditional finance and blockchain payment". On the one hand, existing institutions such as Circle, PayPal, and Visa can issue regulated stablecoins; on the other hand, DeFi and Web3 projects can use these "on-chain dollars" for low-cost settlement. This is not a game between tradition and encryption, but the starting point of interoperability. Stablecoins will no longer be just a clearing tool within the exchange, but will become a payment option on mainstream merchant POS machines, a universal medium for corporate financial circulation, and a bridge between banks and smart contracts.
The macro game behind the GENIUS Act cannot be ignored. Against the backdrop of the "de-dollarization" wave and the accelerating global exploration of central bank digital currencies (CBDCs), the United States chose to abandon the official CBDC and turn to stablecoins as the output of digital dollars. In a sense, this is an upgrade of the US dollar to the 21st century Internet currency. U.S. Treasury Secretary Bessant publicly stated: "A thriving stablecoin ecosystem will enhance the global influence of the US dollar and drive the private sector's continued demand for U.S. Treasuries." In other words, stablecoins have become a consumption channel for "digital treasuries," and the U.S. debt structure may even gain a new round of financing lifeline.
At the end of 2020, the total market value of global stablecoins was less than $30 billion, but now it has exceeded $250 billion. The passage of the GENIUS Act may cause this figure to jump to $3-5 trillion in the next five years, and this is just the beginning of the "institutional explosion."
Jason, an analyst at StarEx Exchange, believes that the substantial impact of the GENIUS Act is to establish a "stablecoin licensing system". This means that the DeFi ecosystem will receive compliant liquidity injections, and the status of stablecoins as on-chain collateral, liquidation currency, and income certificates will be institutionalized; the Web3 payment track will usher in large-scale penetration, and stablecoins can be directly adopted in mainstream platforms such as eBay, Airbnb, Telegram, and X platform; the IPO wave of stablecoin issuers may be coming, and Circle is the first one. In the future, more branded currencies such as PayPal USD and Stripe Coin may appear; a new cycle of institutional market makers and liquidity service providers, legal stablecoins will usher in a new era of on-chain bonds and on-chain asset securitization (RWA).
This is not a bubble speculation, but a real evolution driven by legislation, linked to the financial system, and involving technology giants.
Jason, an analyst at StarEx Exchange, believes that the passage of the GENIUS Act is not an isolated regulatory event, but the first theme of the global financial system's "on-chainization". It symbolizes that the United States is choosing "compliant stablecoins" as a strategic entry point for digital currency, intending to continue to dominate the development direction of global payment and financial technology. This is a "compliant bull market" under institutional capitalism, and it may also be an "industrial revolution" of on-chain finance.
For investors, this is a great opportunity to change the narrative framework: stablecoins are not "tool coins in exchanges" but "dollars on the Internet"; they are not "supporting roles in encryption" but "protagonists in finance."
The explosion of stablecoins is coming, and it will not only lead to the prosperity of the cryptocurrency circle, but also the reconstruction of the global payment order.
Are you ready for the era of “on-chain dollar”?
