19% to 700%? The Stablecoin Law Says Will 10× Coinbase

The stablecoin market is on the verge of a significant change. Analysts are optimistic that Coinbase will be generating a lot of income in its stablecoin in the new law known as Genius Act. It is projected that the revenue may grow by two to seven times its present size, and it would instantly attract investors and indicate a structural change in the way regulated stablecoins might scale in the United States.

What the Genius Act Changes for Stablecoins

The Genius Act is a law signed by Donald Trump, which creates a formal regulatory framework of stablecoins in the United States. Issuers are also to be under complete 1:1 support to the U.S. Plus, Treasuries and be subjected to stringent anti-money laundering measures by lawmakers. This framework will minimize uncertainty and build institutional confidence.

Already, a large portion of Coinbase revenue goes to stablecoins. By 2025, the income associated with stablecoins will be almost 19 percent of the overall revenue. Greater regulatory transparency would speed up the volume of transactions and institutional involvement. This has a direct impact on increasing the revenue generated by the custody services, trading, and strategic alliances. Coinbase has gone also far in compliance infrastructure and this makes the company ahead of smaller players, who are not regulatory ready.

Growth Comes With Regulatory Trade-Offs

The Genius Act makes stablecoin issuers maintain high-quality liquid assets, which are mostly U.S. government debt, as reserves. Such a requirement might put high demand on the U.S. Treasuries, and also some projects may well reach to the tune of 1 trillion in the long term. Plus, increasing Treasury usage would make stablecoins increasingly embedded in the legacy financial framework and enhance the interdependence between crypto markets and the sovereign debt market. Governmental restrictions on the distribution of yields might inhibit user incentives and also reduce the rate of adoption. The course that Coinbase will follow depends on the manner in which regulators complete these regulations. The policymakers need to strike a balance between innovation and financial stability and their steps will directly influence the rate of growth.

A Turning Point for Crypto and Traditional Finance

The Genius Act is the structural point of turning the relationship between crypto and also traditional finance. It expedites the intersection of digital properties and controlled financial infrastructure. Therefore, in the case of Coinbase, this change may open the door to a massive growth period, yet the management will have to perform and react to the changing decisions of policies. The regulation, adoption, and revenue growth are aspects that the market players will keenly track in the next few months.

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