Stablecoins Poised to Become ‘Internet’s Monetary Backbone’ if GENIUS Act Succeeds, Says Bernstein

Bernstein: GENIUS Act Could Turn Stablecoins Into the Internet’s Financial Backbone

A new U.S. regulatory framework may accelerate the transformation of stablecoins from crypto-native instruments to mainstream financial infrastructure, according to a Monday research note from brokerage firm Bernstein.

The Guiding and Establishing National Innovation for U.S. Stablecoins Act — or GENIUS Act — is set for a Senate vote this week. Bernstein expects it will pass within months, potentially giving regulated U.S. issuers a first-mover advantage in the rapidly evolving digital money sector.

Stablecoins, which maintain a 1:1 peg to traditional assets like the U.S. dollar or gold, are already a key pillar of crypto market infrastructure. But with regulatory clarity, their role could expand dramatically. “We see stablecoins shifting from niche crypto tools to becoming the money rail of the internet,” Bernstein said.

The legislation proposes mandatory federal oversight for issuers of stablecoins with market caps exceeding $10 billion, while allowing smaller issuers to operate under state-level frameworks that align with federal standards.

One of the key goals of the act is to spur innovation within U.S. borders — and prevent tech behemoths from issuing their own tokens unchecked. The bill includes provisions that make it difficult for non-financial public companies to launch stablecoins, effectively requiring firms like Amazon and Walmart to work with licensed issuers if they want to use stablecoin technology.

Bernstein adds that treating stablecoins as “digital cash” under the act could unlock broader use cases, from e-commerce and international remittances to embedded payments across Web3 platforms.

As the digital economy matures, the GENIUS Act could serve as a launchpad for a new phase of regulated, internet-native finance — with stablecoins at its core.