GENIUS Act Could Cement Stablecoins as Core Infrastructure of the Internet, Says Bernstein
As the U.S. Senate prepares to vote on the GENIUS Act this week, analysts at Bernstein say the legislation could mark a turning point for the role of stablecoins in the global financial system.
The Guiding and Establishing National Innovation for U.S. Stablecoins Act aims to regulate and legitimize stablecoin issuers operating at scale. Once enacted, the bill is expected to accelerate the shift of stablecoins from crypto-focused utilities to mainstream payment infrastructure.
“We believe stablecoins are poised to become the foundational money rail of the internet, not just the crypto economy,” Bernstein wrote in a research note Monday.
Currently used for trading, remittances, and on-chain payments, stablecoins have largely existed in regulatory gray areas. The GENIUS Act addresses this by creating clear guidelines: any issuer managing over $10 billion in stablecoin assets will be subject to federal oversight, while smaller issuers may be governed by state regulators under harmonized rules.
The bill also designates stablecoins as a form of digital cash — paving the way for broader adoption across e-commerce, fintech, and international payments.
Interestingly, the legislation places strict limits on who can issue stablecoins. Bernstein highlighted a clause that makes it nearly impossible for large non-financial corporations like Amazon or Walmart to issue their own tokens — a move designed to ensure financial stability and regulatory accountability.
Instead, major companies would need to partner with licensed, regulated stablecoin issuers to integrate digital dollar rails into their ecosystems.
With this regulatory clarity, Bernstein believes the U.S. is positioning itself to lead the global race on digital financial infrastructure — using stablecoins as a compliant and scalable foundation for future internet-native money flows.
