GENIUS Act Set to Reshape Stablecoin Landscape, Says Bernstein

The U.S. Senate is preparing to vote on the GENIUS Act — a pivotal bill aimed at regulating stablecoins — with passage expected within the next few months, according to a research note published Monday by brokerage firm Bernstein.

Stablecoins, digital assets pegged to traditional stores of value like the U.S. dollar or gold, have become critical to the functioning of the crypto ecosystem, serving both as payment infrastructure and a key mechanism for cross-border transfers.

Bernstein believes the proposed legislation, formally titled the Guiding and Establishing National Innovation for U.S. Stablecoins Act, could dramatically expand the role of stablecoins in the broader digital economy. “Once enacted, stablecoins could evolve from being crypto’s internal money rail to powering financial transactions across the entire internet,” the firm wrote.

The GENIUS Act aims to bring stablecoin development back to the U.S. by offering regulatory clarity and a competitive edge to U.S.-based issuers. It mandates federal oversight for issuers whose stablecoins exceed a $10 billion market cap, while also allowing for state-level regulation if aligned with national standards.

Bernstein notes that the bill treats stablecoins as a form of digital cash, and is intended to drive mainstream adoption in retail payments — not just crypto trading and settlement.

Importantly, the legislation restricts non-financial public companies from becoming stablecoin issuers — a provision that could directly impact tech giants like Amazon and Walmart, both of which have reportedly shown interest in leveraging stablecoin technology. Instead, these firms would likely need to partner with licensed issuers rather than creating their own tokens.

In Bernstein’s view, the GENIUS Act has the potential to transform stablecoins into a foundational layer of internet-native finance — ushering in a new phase of adoption and innovation under regulatory guardrails.