U.S. Senate Advances GENIUS Act: What Benefits Could This Milestone Bring?

The U.S. Senate has just passed a procedural vote on the GENIUS Act, marking a major milestone in the path toward stablecoin regulation. The crypto industry has welcomed the bill as a crucial step toward legitimizing stablecoins and fostering innovation. Ji Kim, President and Acting CEO of the Crypto Council for Innovation, called the vote "historic" and a testament to months of bipartisan negotiations.

Faryar Shirzad, Chief Policy Officer at Coinbase, hailed the development as a "historic early win" for the crypto sector.

From policy leaders to major platforms, a wave of optimism swept across Crypto Twitter. Industry voices see this as a turning point that could bring long-sought regulatory clarity—and unlock the next phase of adoption.

With sentiment running high, the big question now is: What are the key tailwinds this vote could bring for the crypto market?

According to TechFlow's report, the passing of the GENIUS Act not only sparked widespread celebration but is also expected to bring several tangible benefits to the crypto ecosystem:

1. Explosive Growth in the Stablecoin Market

The GENIUS Act’s reserve requirements—mandating 100% liquid assets, mainly U.S. Treasury bonds—and transparency rules mainly benefit centralized stablecoin issuers. These stablecoins already mostly comply, and clear regulation is expected to attract more institutional capital, boosting their use in trading and payments.

For instance, Tether’s USDT, the largest stablecoin with a market cap near $130 billion in 2025, holds about 60% of its reserves in short-term U.S. Treasuries and 40% in cash equivalents (Tether Q1 2025 report). USDT meets the Act’s requirements and transparency standards but needs to address regulatory concerns over illicit use.

Similarly, Circle’s USDC, with a $60 billion market cap, keeps around 80% of reserves in U.S. Treasuries (Circle May 2025 report). Circle is registered in the U.S. and works closely with regulators. The GENIUS Act could make USDC a preferred institutional stablecoin, especially in DeFi, where it holds 30% market share in 2025.

MakerDAO’s DAI, the largest decentralized stablecoin (~$9 billion market cap), is mostly backed by crypto assets with only 10% in U.S. Treasuries. It may need to increase Treasury holdings to align with the law, which could boost MKR holders through higher DAI demand (MakerDAO’s 2025 protocol revenue around $200 million).

2. Increased Activity in the DeFi Ecosystem

The GENIUS Act will likely boost stablecoin usage, benefiting major DeFi protocols.

Aave ($AAVE), the top lending platform (~$10B TVL), sees 40% stablecoin lending. More stablecoin borrowing/lending should grow its volume, benefiting $AAVE holders through higher protocol fees. Following the vote's approval, AAVE’s price reacted quickly, surging from $213 to nearly $270, marking an increase of approximately 27%, reflecting optimism about its role in a regulated stablecoin ecosystem.

Curve Finance ($CRV), with a 2025 TVL of ~$2 billion, relies heavily on stablecoin pools (~70%). Increased stablecoin volume could raise its daily trades (currently ~$300M), boosting fee revenue for $CRV holders. CRV also responded positively, rising from $0.67 to $0.75, an increase of about 12%.

Uniswap ($UNI), the largest DEX with ~$5 billion TVL, has 30% liquidity in stablecoin pairs. It will gain from more stablecoin trades but less than Curve, with holders earning from trading fees.

3. Advancement of Real-World Asset Tokenization (RWA)

By mandating reserves in U.S. Treasury bonds and other liquid assets, the GENIUS Act opens new doors for tokenizing real-world assets.

Projects like Ondo Finance are pioneering this space by tokenizing fixed income assets such as U.S. Treasuries through products like USDY, issued across multiple blockchains. Growing demand for compliant stablecoins is expected to boost the adoption of such tokenized assets.

4. Strengthening the U.S. Dollar’s Global Dominance

The U.S. push for stablecoin legislation can be seen as a strategic, transparent move. On one hand, the U.S. aims to maintain a weak dollar policy to boost exports; on the other, it is determined to preserve the dollar’s status as the world’s dominant reserve currency.

By supporting stablecoin development, the U.S. extends the global influence of the dollar digitally—without increasing the Federal Reserve’s liabilities. Currently, 99% of stablecoins are pegged to the U.S. dollar, reinforcing its dominance in the crypto space.

Moreover, the regulatory requirement that stablecoins must hold U.S. Treasury bills as reserves cleverly creates a steady new demand for American debt. For example, Tether alone holds more U.S. Treasuries than many developed countries, highlighting the scale of this effect.

This policy not only sustains the dollar’s global supremacy but also secures reliable buyers for the massive U.S. national debt—achieving two major goals simultaneously.

Looking Ahead: Opportunities and Caution

The passage of the GENIUS Act marks a significant milestone for the crypto market. By linking stablecoins to U.S. Treasuries, it strengthens the dollar’s global dominance while encouraging growth and legitimacy within the crypto ecosystem.

While this “sunny conspiracy” brings new opportunities, the industry must remain mindful of challenges like dependence on U.S. debt and potential regulatory limits on DeFi innovation.

Nevertheless, uncertainty has always driven crypto’s evolution. Market participants are optimistic, eagerly awaiting a clear bullish cycle.

Looking ahead, the hope is that the bill will pass smoothly and pave the way for greater regulatory clarity, ushering in a new era of growth for the crypto industry.