Bernstein: Once the GENIUS Act takes effect, stablecoins will become the cash layer of the internet.

Gate News bot message, Wall Street brokerage firm Bernstein stated in a research report on Monday that the U.S. Senate’s “stablecoin bill” (GENIUS Act), which is a key component of U.S. stablecoin regulation, will be voted on this week and is expected to pass in the coming months.

Bernstein stated that once the bill is passed, “stablecoins will evolve from the monetary orbit of cryptocurrencies to the monetary orbit of the Internet.” The bill aims to bring stablecoin innovation back to the United States, providing an advantage to issuing institutions regulated by the U.S.

According to reports, this bill requires federal regulation of stablecoins with a market value exceeding $10 billion, and if they comply with federal rules, they may be regulated by state governments.

The bill classifies stablecoins as digital cash, aiming to promote broader mainstream payment applications, not just using these cryptocurrencies as settlement currencies for digital assets.

Bernstein stated that the “GENIUS Act” “prohibits non-financial publicly traded companies from becoming stablecoin issuers,” and noted that there have been recent reports that Amazon and Walmart are exploring the use of these cryptocurrencies.

The report adds that if e-commerce and technology platforms want to adopt these cryptocurrencies, they will likely have to collaborate with regulated U.S. issuers rather than issuing their own stablecoins.

Source: CoinDesk