Sygnum Executive: New Developments in the GENIUS Bill Will Accelerate Institutional Adoption of Stablecoins

Gate News bot message, with the U.S. Senate passing a new bill "GENIUS Act", the adoption of stablecoins by U.S. banks and Financial Institutions may accelerate.

The bill was passed in the U.S. Senate on Tuesday with a result of 68 votes in favor and 30 against, aiming to establish clear rules for stablecoin collateral and mandating compliance with anti-money laundering laws.

Katalin Tischhauser, the head of investment research at the digital asset bank Sygnum, stated that the Senate's vote sent a "strong positive signal" to various institutions, bringing the bill one step closer to official enactment.

Tischhauser stated that many large banks and traditional Financial Institutions are planning to integrate stablecoins into their payment and settlement systems, and added: "A clear regulatory framework and compliance path are necessary, and legal recognition of stablecoins as a settlement tool is also essential."

However, she stated that the use of institutional stablecoins may initially be limited to tokens issued on private blockchains.

Source: Cointelegraph