Over the past few months, stablecoins have become the talk of the crypto town as institutional adoption for USDC and other tokens has skyrocketed.
The market’s total stablecoin value has been continuously increasing, with value now at $232B as of May 2025.
In the US, the GENIUS Act aims to create a framework for the adoption of crypto assets and stablecoins, which is set to be voted on by 20 May 2025.
Stablecoins usage surges as GENIUS Act passes first votes
After democrats disagreed with certain clauses, a bipartisan agreement has been reached on the GENIUS Act, with an added clause that bans stablecoins from using the words “USG,” “United States,” “United States Government” in naming schemes.
Non-algorithmic stablecoins are backed 1:1 by the United States dollar. Although they are not directly US dollars, they represent the real-world asset underneath.
As a result, stablecoins have strong use cases in international trade, and institutional players are ready to adopt them en masse when certain frameworks have been approved.
The GENIUS and STABLE Acts will allow institutions and banking groups the ability to fully adopt stablecoins, with projects such as Circle’s Payment Network being able to facilitate cross-border transactions on a large scale in partnership with leading groups.
Speaking with Charles Hoskinson, the creator of Cardano, World Liberty Financial’s co-founder, Zack Witkoff, stated that the USD1 stablecoin was pushed to the BNB Chain to facilitate demand for the dollar.
With demand for US treasures having a continuous demand, US debt may be staved off thanks to the easy access and inclusivity of stablecoins, which can be accessed via the internet with minimal fees and are open for trading 24/7.
By increasing access to the US treasury and the US dollar, stablecoins could solve issues in regard to US debt.
GENIUS Act passes to the next round
After voting concluded on 20 May 2025, the Senate voted 66-32 to proceed on the bill. The GENIUS Act will now be set for another debate on the Senate floor.
According to Eleanor Terrett, GOP leaders are hoping to reach the final vote before Memorial Day next Monday, on the 26th, but “unclear if that will happen at the present time.”
