Stablecoin adoption among institutions could surge as the United States Senate prepares to debate a key piece of legislation aimed at regulating the sector. <\/p>\n
After failing to gain support from key Democrats<\/a> on May 8, the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act passed the US Senate in a 66\u201332 procedural vote on May 20 and is now heading to a debate on the Senate floor.<\/p>\n The bill seeks to set clear rules for stablecoin collateralization and mandate compliance with Anti-Money Laundering laws.<\/p>\n Related: <\/strong><\/em>German gov\u2019t missed out on $2.3B profit after selling Bitcoin at $57K<\/strong><\/em><\/a><\/p>\n \u201cThis act doesn\u2019t just regulate stablecoins, it legitimizes them,\u201d said Andrei Grachev, managing partner at DWF Labs and Falcon Finance.<\/p>\n \u201cIt sets clear rules, and with clarity comes confidence. That\u2019s what institutions have been waiting for,\u201d Grachev told Cointelegraph during the Chain Reaction daily X spaces show<\/a> on May 20, adding:<\/p>\n \u201cStablecoins aren\u2019t a crypto experiment anymore. They\u2019re a better form of money. Faster, simpler, and more transparent than fiat. It\u2019s only a matter of time before they become the default.\u201dSource: <\/em>Cointelegraph<\/em><\/a><\/p>\n The GENIUS Act may be the \u201cfirst step\u201d toward establishing a \u201cunified digital financial system which is borderless, programmable and efficient,\u201d Grachev said, adding:<\/p>\n \u201cWhen the US moves on stablecoin policy, the world watches.\u201d<\/p>\n Republican Senator Cynthia Lummis, a co-sponsor of the bill, also pointed to Memorial Day as a \u201cfair target<\/a>\u201d for its potential passage. <\/p>\n Grachev said regulatory clarity alone will not drive institutional adoption. Products offering stable and predictable yield will also be necessary. Falcon Finance is currently developing a synthetic yield-bearing dollar product designed for this market, he noted.<\/p>\n Yield-bearing stablecoins issuance. Source: Pendle<\/em><\/p>\n Yield-bearing stablecoins<\/a> now represent 4.5% of the total stablecoin market after rising to $11 billion in total circulation, Cointelegraph reported on May 21.<\/p>\nSenate bill seen as path to unified digital system<\/h2>\n