In a landmark decision with far-reaching implications, the United States Senate has passed groundbreaking legislation to establish a federal regulatory framework for dollar-pegged cryptocurrency tokens, commonly known as stablecoins. This move marks a significant milestone for the cryptocurrency industry and could reshape the future of global financial transactions.
Understanding the GENIUS Act
The proposed legislation, titled the Guidance and Establishment of National Innovation for United States Stablecoins Act (GENIUS Act), received strong bipartisan support. With a final vote of 68 to 30, several Democrats joined a majority of Republicans to advance this critical piece of cryptocurrency regulation. This represents the first time major crypto legislation has successfully passed through the Senate.
The bill now moves to the House of Representatives for consideration. If approved there, it would proceed to President Trump for signature before becoming law. This legislative process demonstrates growing governmental recognition of digital assets' potential in modern finance.
Global Stablecoin Developments
The United States isn't alone in establishing stablecoin regulations. Hong Kong's Stablecoin Ordinance officially became law and is set to take effect on August 1, 2025. Financial Secretary Paul Chan recently announced that the government will release its second policy statement on digital asset development this month, focusing on integrating financial services with innovation and expanding application scenarios for digital assets.
Chan further noted that as digital asset markets flourish, demand for stablecoins is expected to increase significantly. Following the ordinance's生效, the Hong Kong Monetary Authority will promptly process license applications from qualified applicants seeking to launch their stablecoin operations.
Industry Movements and Corporate Interest
Major corporations are positioning themselves within this emerging landscape. Ant Group's Vice President and Head of Blockchain Business, Bian Zhuoqun, recently revealed that Ant Digital Technologies has initiated the process of applying for a Hong Kong stablecoin license, having already engaged in multiple rounds of discussions with regulators. The company has designated Hong Kong as its global headquarters this year and completed trials within the regulatory sandbox.
In a strategic move, Ant Digital Technologies partnered with GCL Energy Technology to establish a new joint venture called "Ant Xin Neng." Meanwhile, retail giants Walmart and Amazon have begun exploring possibilities for issuing their own stablecoins in the United States. Online travel leader Expedia, along with several airlines and other large enterprises, is also discussing plans for stablecoin issuance.
This corporate activity signals growing recognition of stablecoins' potential to streamline operations and create new value propositions across various industries 👉 Explore innovative payment solutions.
Analytical Perspectives on Market Impact
Financial analysts have been quick to assess the potential impact of these developments. Tianfeng Securities research reports indicate that stablecoins are evolving from mere "connectors" within crypto assets to becoming new infrastructure for global payments. Under the wave of compliance, both incremental capital and application scenarios are expected to grow rapidly.
The firm projects that by February 2025, the global stablecoin supply will reach $2.14 trillion, with over 30 million active on-chain addresses. This exponential growth suggests stablecoins are fundamentally reshaping cross-border payment paradigms, with diversified applications including cross-border transfers, corporate salary payments, and U.S. treasury collateral settlement.
Policy catalysts are further accelerating stablecoin development, with regulatory breakthroughs in the U.S. and Hong Kong opening new ceilings for growth. Citi predicts the stablecoin market could reach $1.6-3.7 trillion by 2030.
CITIC Securities notes that the stablecoin industry is still in its early stages, serving as a crucial bridge between digital assets and the real world. As regulatory policies落地 globally, the industry is poised for compliant development. Future applications are expected to expand both in breadth and depth, providing substantial support for stablecoin demand.
The firm recommends focusing on: 1) Stablecoin issuers who have explicitly applied for licenses and demonstrate high approval certainty, and 2) Long-term players who might form closed-loop ecosystems for issuance and application.
AVIC Securities highlights stablecoins' role in Real World Asset (RWA) frameworks, including stable pricing, enhanced liquidity, DeFi connectivity, compliance optimization, and institutional capital attraction. Stablecoins are rapidly integrating into the global mainstream financial system, with their market value and business models gaining recognition from mainstream capital markets.
The firm suggests focusing on three growth areas: blockchain + fintech, new energy + RWA, and cross-border payments 👉 Discover advanced financial strategies.
Frequently Asked Questions
What is a stablecoin?
A stablecoin is a type of cryptocurrency designed to maintain a stable value by being pegged to a reserve asset like the U.S. dollar or other commodities. This stability makes them suitable for everyday transactions and financial operations.
How does the GENIUS Act affect cryptocurrency markets?
The GENIUS Act establishes clear regulatory guidelines for stablecoin issuance and operation in the United States. This regulatory clarity reduces uncertainty for investors and businesses, potentially leading to increased adoption and market growth while protecting consumers.
Why are major corporations interested in issuing stablecoins?
Large companies see stablecoins as a way to streamline payment processes, reduce transaction costs, create loyalty programs, and potentially develop new revenue streams. Corporate-issued stablecoins could facilitate faster and cheaper transactions within ecosystems.
What are the main applications of stablecoins beyond cryptocurrency trading?
Beyond trading, stablecoins are increasingly used for cross-border payments, remittances, payroll processing, supply chain finance, and as collateral in decentralized finance applications. Their stable value makes them practical for various financial operations.
How does Hong Kong's approach to stablecoin regulation differ from the U.S.?
While both jurisdictions are establishing comprehensive frameworks, Hong Kong has moved slightly faster in implementing its ordinance, with生效 set for August 2025. The U.S. process involves more legislative steps but may create a more extensive federal framework.
What does RWA mean in the context of stablecoins?
RWA stands for Real World Assets, referring to the tokenization of physical or traditional financial assets on blockchain networks. Stablecoins play a crucial role in these ecosystems by providing stable valuation and liquidity for tokenized assets.