Stablecoin Boom: Tech Giants Jump In, GENIUS Act Hits a Roadblock
WASHINGTON, D.C. – Although the GENIUS Act to regulate cryptocurrencies has stalled in the U.S. Senate, that hasn’t stopped stablecoins from thriving. A slew of new projects, strategic partnerships, and integrations with major tech companies are fueling a global stablecoin boom.
In this article, we take a look at the key developments regarding stablecoins and the regulatory framework surrounding them in the United States.
Stablecoins Rise: Meta, Visa, and Mastercard Enter the Game
Stablecoins – digital assets with stable values – have quickly become a mainstay of the global crypto economy. According to recent data, the total circulating supply of stablecoins is expected to average $521 billion by 2025, surpassing Visa ($319 billion) and PayPal ($32 billion).
The growing appeal of stablecoins is attracting the attention of tech giants like Meta, Visa, and Mastercard, who are planning to integrate stablecoins into their global ecosystems.
Meta (formerly Facebook), which failed with its Libra/Diem project in 2019, is now said to be quietly developing a payment system based on stablecoins like USDT and USDC, allowing global users to transfer money quickly and cheaply through its apps.
Visa has been testing stablecoin transactions since 2023 and has processed over $220 million through its network. It recently invested in BVNK – a company specializing in stablecoin payment infrastructure – and partnered with Bridge (a unit of Stripe) to expand stablecoin services in Latin America.
Mastercard is also not out of the game. The company has partnered with major crypto exchanges such as Binance, OKX, Gemini, Kraken, Bybit, and the MetaMask wallet, enabling stablecoin payments at over 150 million acceptance points globally.
Political Controversy: GENIUS Act Blocked in Senate
The GENIUS Act – a landmark effort to legalize and regulate stablecoins in the United States – has faced strong opposition from Democrats in the Senate. Although it passed the House, the bill stalled when it reached the Senate in May.
According to critics such as Senator Elizabeth Warren, the bill is considered an attempt to “take over” the crypto industry. Democrats fear the law could:
Open the door to foreign donations to political campaigns,
Create legal loopholes for officials to make money through crypto projects,
Weaken anti-money laundering and national security regulations.
They requested that the bill include specific provisions on:
Anti-money laundering regulations,
Overseas stablecoin issuer management,
Enhancing financial accountability oversight,
Ensuring transparency and legal discipline.
"Dark Stablecoins" and Private Stablecoins
In addition to popular stablecoins such as USDT and USDC, the market is witnessing the emergence of private stablecoins deployed on blockchains such as Cardano. Some experts call these “dark stablecoins” due to their anonymity and ability to conceal user identities, raising concerns about money laundering and illicit financing without appropriate control mechanisms.
The Future of Stablecoins: Growth or Tighter Regulation?
Although a clear legal framework remains an open question in the United States, that has not hindered the rapid expansion of stablecoins in digital finance. The involvement of leading global companies in the deployment of stablecoin solutions shows that this type of asset is becoming an important link in the future of global payments.
However, without reasonable regulations and bipartisan consensus, the US risks falling behind in the financial technology race with other countries such as Singapore, UAE or Switzerland - places that are promoting the legalization of digital assets to attract investment.
