“Compliant Stablecoins Poised to Serve as the ‘Monetary Layer’ of the Web, Says Canaccord.”

U.S. GENIUS Act Could Unlock Broader Use Cases for Stablecoins, Says Canaccord

Stablecoins may soon play a much larger role beyond serving merely as trading pairs in crypto markets, thanks to new regulatory clarity following the passage of the GENIUS Act in the U.S. Senate, according to a research report from brokerage Canaccord on Wednesday.

Until now, the broader potential of stablecoins—digital tokens whose value is pegged to assets like the U.S. dollar or gold—has been hindered by regulatory uncertainty, the firm noted. However, the passage of the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act changes the landscape significantly, it said.

The report acknowledged that winning Senate approval was a bigger hurdle than passage in the House of Representatives, which is expected to be smoother due to bipartisan support. As a result, stablecoin regulation in the U.S. now appears imminent.

“Stablecoins represent a true money layer being added to the internet—in essence, programmable money,” Canaccord wrote.

“The promise of stablecoins finding applications beyond simply acting as a trading pair could soon become reality,” the firm’s analysts, led by Joseph Vafi, said. “Compliant stablecoins are effectively recognized by the U.S. government as equivalent to cash.”

Stablecoins already play a crucial role in crypto markets, enabling payments infrastructure and facilitating cross-border money transfers. Canaccord views them as tools that “provide real productivity to money velocity and improve enterprise working capital efficiency.” Transactions settled with stablecoins clear almost instantly and cost significantly less than traditional payment methods, the report added.

Moreover, because compliant stablecoins must be fully backed, they could create substantial demand for short-term U.S. Treasury securities, Canaccord said.

“GENIUS-compliant stablecoins could serve as a catalyst for further dollarization of the global economy as their cross-border adoption grows,” the analysts wrote.

Overall, broader stablecoin adoption could be a powerful driver of growth for the entire cryptocurrency industry, the report concluded.