Stablecoins Poised for Broader Role Following U.S. Senate Passage of GENIUS Act, Says Canaccord

Stablecoins may soon expand far beyond their current use as trading pairs in crypto markets, thanks to regulatory clarity ushered in by the GENIUS Act’s passage in the U.S. Senate, according to a research note from brokerage firm Canaccord on Wednesday.

The legislation, formally known as the Guiding and Establishing National Innovation for U.S. Stablecoins Act, aims to establish a regulatory framework that encourages stablecoin development within the United States. While clearing the Senate proved more challenging, Canaccord believes the bill is likely to pass the House of Representatives given its bipartisan support, signaling that stablecoin regulation in the U.S. is now within reach.

“Stablecoins effectively represent a true money layer being integrated into the internet — programmable cash in digital form,” Canaccord wrote.

The broker noted that stablecoins’ use cases could soon expand well beyond serving as a crypto trading instrument because compliant stablecoins are effectively being acknowledged by the U.S. government as equivalent to cash.

Stablecoins, whose value is typically pegged to assets like the U.S. dollar or gold, have become a critical component of the crypto ecosystem, supporting payment rails and facilitating cross-border money transfers.

Canaccord’s analysts, led by Joseph Vafi, view stablecoins as tools that “add real productivity to money velocity and enhance enterprise working capital efficiency.” They pointed out that stablecoin transactions clear almost instantly and cost far less than traditional payment systems.

Additionally, because compliant stablecoins must be fully backed, they could generate significant demand for short-term U.S. Treasury securities, Canaccord added.

“GENIUS-compliant stablecoins could become a catalyst for further dollarization of the global economy as their cross-border adoption grows,” the report said.

Ultimately, broader stablecoin adoption could act as a tailwind for the growth of the entire cryptocurrency sector, Canaccord concluded.