On June 17, the U.S. Senate passed the Guiding and Establishing National Innovation for U.S. Stablecoins (Genius) Act, vaulting the first comprehensive federal stablecoin framework over its biggest hurdle.
The bill now heads to the House, where the Financial Services Committee is preparing its own text for conference negotiations and potentially a vote later this summer. It could be signed into law before the fall, reshaping the cryptocurrency landscape in a major way.
The act's mix of strict reserve mandates and nationwide licensing has the power to determine which blockchains are favored, which projects matter, which tokens are used, and thus where the next wave of liquidity lands. Let's dig in and take a look at three of the biggest ways the legislation could make waves, assuming it gets signed into law.
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1. Payment-focused altcoins could go extinct overnight
The Senate bill would create a new "permitted payment stablecoin issuer" charter and requires every token to be backed 1:1 with cash, U.S. Treasuries, or overnight repurchase agreements (repos) -- all audited annually for issuers above $50 billion in circulation. This is a distinct change from the present Wild West system, in which there are few meaningful safeguards or reserve requirements.
That clarity hits just as stablecoins have become the dominant medium of exchange on blockchains. In 2024, they accounted for roughly 60% of all crypto transfer value and processed 1.5 million transactions a day, most less than $10,000.
For everyday payments, a stablecoin token that never drifts from $1 is simply more useful than most legacy payment‑focused altcoins, whose price can swing 5% before lunch.
Once U.S.‑licensed stablecoins can move legally across state lines, merchants that still accept volatile coins will be hard‑pressed to justify the extra risk. During the next few years, those altcoins may see their utility severely erode along with their investment thesis, if they can't pivot.
Even if the Senate's bill doesn't pass in its current form, the writing is on the wall. The long-term incentives will tilt sharply toward dollar‑pegged payment rails rather than payment-focused altcoins.
2. These fresh compliance rules could practically pick the new winners
The new regulations wouldn't just bless stablecoins; if the bill is signed into law, eventually it will effectively funnel these coins to blockchains that can satisfy auditors and risk officers.
Ethereum (ETH -0.22%) already hosts about $130.3 billion worth of stablecoins, far more than any rival. Its mature decentralized finance (DeFi) stack means issuers can plug into lending pools, collateral lockers, and analytics out of the box. They can also duct-tape together a set of regulatory compliance modules and best practices so as to try to appease regulatory requirements.
In contrast, the XRP (XRP 5.66%) Ledger (XRPL) is positioning itself as the compliance‑first home for tokenized money, including for stablecoins.
In the last month alone, fully backed stablecoin tokens have launched on XRP Ledger, each touting built‑in tools for account freezes, blacklists, and identity screening. Those features align neatly with the Senate bill's requirement that issuers maintain robust redemption and money‑laundering controls.
Ethereum's compliance stack could potentially leave issuers in violation of that mandate, but it's difficult to say exactly how stringent regulators' requirements are on that front as of now.
Nonetheless, if the bill becomes law in its current form, large issuers will need real‑time verifications and turnkey know-your-customer (KYC) hooks to stay even approximately in good standing. Ethereum offers flexibility at the expense of complicated technical implementations, whereas XRP offers top‑down control on a streamlined platform.
Both chains look advantaged at the moment, at least in comparison to privacy‑centric chains or speed-focused chains, which may struggle to meet the same requirements without expensive retrofits.
3. Reserve rules could flood blockchains with institutional cash
Because every dollar stablecoin must sit on a matched reserve of cash-like assets, the act quietly ties crypto liquidity to U.S. short‑term debt.
The stablecoin market already tops $251 billion. It could grow to reach $500 billion by 2026 if institutional adoption stays on its current path. At that scale, stablecoin issuers would be among the largest buyers of U.S. Treasury bills, recycling the yield to fund redemptions or customer rewards.
For blockchains, the connection matters in two ways. First, the demand for more reserves means that more corporate balance sheets will be holding Treasuries while simultaneously holding native coins to pay network fees, thereby driving organic demand for coins like Ethereum and XRP.
Second, stablecoin interest revenue could underwrite aggressive user incentives. If issuers send back part of their Treasury yield to holders, spending stablecoins rather than using a credit card might becomes the rational choice for some investors, accelerating on‑chain payment volume and fee throughput.
Assuming the House keeps the reserve language intact, investors should expect increased monetary sensitivity as well. If regulators tweak collateral eligibility or the Federal Reserve shifts bill supply, stablecoin growth and crypto liquidity will move in lockstep.
That is a risk worth noting, but also a sign that digital assets are entering the mainstream of capital markets rather than standing apart from them from here on out.
