Analysis: After the passage of the "GENIUS Act," compliant stablecoins may become an important source of demand for short-term U.S. Treasury securities

ChainCatcher news, brokerage firm Canaccord stated in a research report on Wednesday that due to regulatory uncertainties, the broader outlook for stablecoins (cryptocurrencies pegged to other assets) has so far been difficult to achieve. However, the passage of the GENIUS Act by the U.S. Senate has changed everything.

The full name of the act is the "Guidance and Establishment of a National Stablecoin Innovation Act," aimed at bringing stablecoin innovation back to the United States. Reports indicate that winning support in the Senate is much harder than in the House of Representatives. Given that the bill has bipartisan support, U.S. stablecoin legislation is now within reach.

Analysts suggest that the prospects for stablecoins beyond crypto trading pairs may soon emerge, as compliant stablecoins are effectively viewed by the U.S. government as equivalent to cash. Given the need for full backing, compliant stablecoins could become a significant source of demand for short-term U.S. Treasury securities. As the use of stablecoins that meet GENIUS standards expands cross-border, they may become a driving force for the dollarization of the global economy.