Stablecoin regulation is set to transform the entire financial sector, industry experts believe.Stablecoin regulation is set to transform the entire financial sector, industry experts believe.

GENIUS Act could bring trillions in institutional crypto capital: experts weigh in

Genius Act clears U.S. Senate, signaling a major shift in stablecoin regulation.

The passage of the landmark Genius Act in the U.S. Senate has signaled a major shift in crypto regulation. According to industry experts, the change it could bring is hard to overstate. Stablecoins are on track to become part of a core trillion-dollar industry and transform everyday life for consumers.

Ira Auerbach, Head of Tandem at Offchain Labs, believes this regulatory clarity removes a major roadblock for adoption. The Genius Act has the potential to bring billions in institutional capital into the industry, already validated by the Circle IPO. He said in a note sent to crypto.news:

This capital inflow will be transformative for the entire decentralized finance space, says Erbil Karaman, Co-Founder of Huma Finance. It will elevate stablecoins from speculative tools to “indispensable financial infrastructure,” he believes.

Genius Act to boost global adoption

Regulatory clarity is what major institutions have been waiting for, said John McCarthy, General Counsel at the DeFi lending protocol Morpho. This applies not just to U.S. firms, but also to institutions around the world.

Other countries are already watching developments in the U.S., said Evan Auyang, Group President of Animoca Brands. Hong Kong, where the gaming company is headquartered, was an early mover, but now needs to act decisively, Auyang explained.

Stablecoins will transform everyday life

Stablecoin regulation unlocks the potential for companies to create products that reach millions, said Stephane Gosselin, CEO of OneBalance. These products will soon resemble traditional apps more than complex DeFi protocols.

This growing adoption could transform everyday life for consumers, said Lane Rettig, Head of Research at the NEAR Foundation. One promising use case is remittances—but Rettig emphasized that regulators must leave room for startups to innovate.

Stablecoins could become a risk to privacy

Wider stablecoin adoption also creates a tangible risk to privacy, with some comparing them to central bank digital currencies. Rob Viglione, Co-Founder of Horizen Labs, one of the earliest zero-knowledge projects, launched in 2017, warns that privacy must be built into any stablecoin framework.

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