GENIUS Act May Advance US Stablecoin Utility and Align Regulations with Global Standards, Says Sygnum’s Fabian Dori

Key Points

1. The GENIUS Act creates a federal framework for stablecoins, focusing on payment utility rather than investment returns.

2. This approach aligns U.S. regulations closer to the EU’s MiCA standards, fostering global regulatory consistency.

3. Stablecoin issuers are shifting toward features like real-time settlement and low-cost transactions to drive everyday commerce.

4. Retail consumer adoption is a key driver for stablecoin growth, with a 190% increase in small payment volumes.

5. Tokenized money market funds, offering yields of 4–5% backed by U.S. Treasuries, are gaining traction as investment products.

6. DeFi protocols benefit from the regulatory clarity provided by the GENIUS Act, enabling new use cases beyond payments.

7. The Act’s distinction between payment and yield-bearing stablecoins mirrors the EU’s MiCA framework, promoting global consensus.