Washington, D.C., August 27, 2025 – The United States House of Representatives has passed the Guiding and Establishing National Innovations of U.S. Stablecoins (GENIUS) Act, a landmark step under the Trump administration toward creating a more solid foundation and additional regulatory clarity for digital assets Innovations of U.S. Stablecoins (GENIUS) Act.

The new legislation, which regulates stablecoins in the United States, is expected to accelerate crypto adoption and grow the current market to $2 trillion, according to Treasury Secretary Scott Bessent. With the U.S. currently holding over 90% of the global stablecoin capital, the passage of this act is set to prompt significant moves from Wall Street.

As Binance CEO Richard Teng commented in a recent X post, “The GENIUS Act represents what the crypto industry has long needed: clear, comprehensive stablecoin regulation. We’re witnessing the foundation being laid for mainstream digital currency adoption in the U.S. and beyond.”

The $2 Trillion Opportunity

During a Senate meeting on the importance of the GENIUS Act, Treasury Secretary Bessent projected that the stablecoin market could expand to $2 trillion by 2028, a 1000% increase from today’s $195 billion.

Given that the U.S. dominates the stablecoin market with a 96% share, the new law is positioned to create strong incentives for projected growth.

Bessent emphasized that stablecoin regulation, through strict one-to-one backing requirements with USD or other low-risk assets, will “reinforce dollar supremacy” and transform stablecoins into “a pillar of monetary strength” for the U.S. dollar as decentralized financial systems grow.

Institutional Preparations

Major U.S. financial institutions have already begun preparing strategies to capture stablecoin market share. During their second-term earnings calls, executives from leading banks highlighted their positioning, with many identifying the GENIUS Act as an opportunity to launch stablecoins or related products.

JPMorgan Chase CEO Jamie Dimon, previously a crypto skeptic, confirmed the bank’s entry into the space with the launch of “JPMD.” He stated, “We’re going to be involved in both JPMorgan Deposit coin and stablecoins,” underscoring the importance of direct participation.

Citigroup has rolled out “Citi Token Services” across multiple markets, focusing on real-time payments and cross-border settlement. Executives at Bank of America and Goldman Sachs signaled a measured approach, emphasizing research before building stablecoin services.

Industry Considerations

The bipartisan bill received support from both Republicans and Democrats. It introduces a dual-track licensing system with separate processes for state and federal licenses.

The federal licensing framework is designed to provide unified national oversight for larger companies, while the state-level system may be more accessible to smaller businesses due to reduced administrative requirements. State licenses, however, do not include federal preemption, requiring compliance with varying state regulations.

Implications for Payments Infrastructure

The GENIUS Act has drawn comparisons to earlier shifts in the payments industry, such as the competition between Zelle and Venmo. Financial institutions are now exploring both individual stablecoin products and collaborative systems to adapt to this rapidly evolving market.

Stablecoins promise faster cross-border transactions, enhanced accountability through transparency, and reduced costs.

Bank of America CEO Brian T. Moynihan remarked, “We have to be aware of the attack on the payment system, and we’ll be there to defend it.” He noted that streamlined access to money offered by stablecoins could disrupt traditional payment revenue streams.

A Milestone for U.S. Financial Leadership

The passage of the GENIUS Act marks a milestone in bringing digital currency into the mainstream U.S. financial system with federal support. Wall Street’s strategic shift toward stablecoins, combined with efforts to preserve the broader financial framework, underscores the transformative potential of stablecoins to reshape traditional finance.

By Craig Lebrau

This industry announcement article is for informational and educational purposes only and does not constitute financial or investment advice.