The GENIUS Act: A Game-Changer for Stablecoins in the U.S.
Bitget CEO Gracy Chen recently shared her insights on the potential impact of the GENIUS Act on regulated stablecoins such as USDC and USDT. The newly advanced U.S. law aims to bring stablecoins under formal oversight, with the goal of boosting trust, driving institutional adoption, and strengthening the global role of the U.S. dollar.
Chen believes that under the GENIUS Act, regulated stablecoins could see significant annual growth of 20% to 30%. The bill, which has now moved to the House of Representatives for review, has garnered support from President Trump, who is urging its swift passage.
The GENIUS Act is poised to drive adoption of stablecoins by requiring issuers to maintain reserves backed by U.S. Treasury securities. This measure is designed to reduce risk, increase transparency, and align digital assets more closely with the strength of the U.S. economy.
In her commentary, Chen emphasized that the regulatory clarity provided by the GENIUS Act will encourage wider adoption of regulated stablecoins. She predicts that leading dollar-backed stablecoins like USDC and USDT could experience market capitalization growth of up to 30% annually, assuming favorable market conditions.
While regulation can sometimes be viewed as restrictive, Chen highlighted its importance in building trust within financial markets. She compared regulators to parents, stating that they may be annoying but are necessary for the long-term health of the industry.
However, the GENIUS Act may create barriers for smaller stablecoin issuers, as the law’s reserve requirements could prove to be costly for startups and niche providers. This may lead to industry consolidation, with fewer but more compliant stablecoin issuers dominating the market.
The details of the GENIUS Act, which was passed by the U.S. Senate on June 18, include mandates for stablecoin issuers to maintain full reserves of liquid assets such as U.S. Treasury notes. Oversight will be managed by the Federal Reserve for major issuers and the Office of the Comptroller of the Currency for smaller entities.
The passage of the GENIUS Act could ignite significant growth in the $260 billion stablecoin market, with Treasury Secretary Scott Bessent projecting a potential market size of $3.7 trillion by 2030. This growth may attract tech giants like Apple and Google to launch their digital currencies, provided they meet specific risk management and privacy protections.
While the bill has received praise from much of the crypto industry, it has faced criticism for offering what some consider to be “light-touch regulation” and for neglecting broader cryptocurrency oversight. The bill is currently under review in the House of Representatives, with President Trump urging lawmakers to pass it promptly to ensure continued U.S. leadership in digital assets.
As the industry awaits further developments on the GENIUS Act, Polymarket bettors are placing strong odds, 89%, on the bill becoming law before 2026.
Disclaimer: The information presented in this article is for informational and educational purposes only and does not constitute financial advice. Readers are advised to exercise caution before taking any action related to the content mentioned.