GENIUS Act Paves Way for Stablecoins to Become Internet’s “Money Layer,” Says Canaccord
Stablecoins could soon expand far beyond their current role as trading tools in crypto markets, thanks to new regulatory momentum from the GENIUS Act’s passage in the U.S. Senate, according to a research note from brokerage firm Canaccord published Wednesday.
For years, the broader promise of stablecoins—digital tokens backed by assets like the U.S. dollar or gold—has remained unrealized due to lingering regulatory uncertainty. The recent approval of the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act could change that, Canaccord said.
Securing support in the Senate was a significant milestone, as the House of Representatives is expected to pass the bill more easily, given its bipartisan backing. As a result, meaningful stablecoin legislation in the U.S. may soon become law.
“Stablecoins essentially form a new money layer for the internet—a type of programmable cash,” Canaccord wrote.
Analysts led by Joseph Vafi noted that stablecoins might soon find broader applications beyond serving as crypto trading pairs. “Compliant stablecoins are now, in effect, recognized by the U.S. government as equivalent to cash,” they said.
Stablecoins already underpin much of the crypto ecosystem, functioning as critical payment rails and enabling fast, global money transfers. Canaccord sees them as boosting the velocity of money and helping companies manage working capital more efficiently. Stablecoin transactions settle nearly instantly and cost far less than traditional banking systems, the report added.
Importantly, the requirement for compliant stablecoins to be fully backed could generate significant demand for short-term U.S. Treasuries, Canaccord pointed out.
“GENIUS-compliant stablecoins could be instrumental in further dollarizing the global economy as adoption spreads across borders,” the analysts wrote.
The report concluded that rising stablecoin adoption will help propel the broader crypto industry forward.
