Stablecoin Adoption in U.S. Banks May Surge Following Senate Legislation

According to Cointelegraph, the adoption of stablecoins among U.S. banks and financial institutions is expected to accelerate following the recent passage of new legislation in the Senate. The Guiding and Establishing National Innovation for US Stablecoins, or GENIUS Act, was approved by the Senate with a 68–30 vote. This bill aims to establish clear guidelines for stablecoin collateralization and enforce compliance with Anti-Money Laundering laws. Katalin Tischhauser, head of investment research at digital asset bank Sygnum, noted that the Senate vote sends a strong positive signal to institutions, bringing the bill closer to becoming law. Tischhauser highlighted that many large banks and traditional financial institutions are planning to integrate stablecoins for payments and settlements. She emphasized the necessity of clear regulatory frameworks and legal recognition of stablecoins as settlement instruments, although initial institutional use may be limited to tokens issued on private blockchains. Emerging crypto policy developments and stablecoin regulations are seen as significant catalysts for the 2025 crypto market cycle, according to Alice Li, investment partner and head of US at crypto venture capital firm Foresight Ventures. During the Chain Reaction X Spaces show on June 3, Li identified policy changes, including U.S. President Donald Trump’s approval of Bitcoin reserves and stablecoin policy developments, as key drivers for Bitcoin's price increase in 2025. Andrei Grachev, managing partner at Falcon Finance and DWF Labs, stated that full Congress approval of the GENIUS Act would integrate stablecoins into the U.S. financial infrastructure. Grachev explained that if issuers begin holding large amounts of Treasurys, stablecoins would transition from niche instruments to key economic players, providing institutions with greater confidence in using them for settlements and payments. Alex Buelau, co-founder of Rayls, a blockchain for banks collaborating with JP Morgan’s Kinexys blockchain infrastructure, remarked that financial institutions using stablecoins have been operating in a regulatory gray area due to a lack of clarity and government guidance. With the new legislation, institutions are expected to capitalize on stablecoin opportunities, particularly in cross-border payments, 24/7 settlements, and enhancing global on-chain liquidity. On June 15, JPMorgan Chase filed a new U.S. trademark application for “JPMD,” fueling speculation about a potential stablecoin offering. The filing included services such as digital asset trading, transfers, exchange, clearing, and payment processing.