Emre Yumlu 
The GENIUS Act, which is set to be debated in the U.S. Senate, stands out as a major step toward institutional adoption of stablecoins. According to Andrei Grachev, managing partner at DWF Labs, the bill does more than just regulate—it officially integrates stablecoins into the traditional financial system.
The bill, officially titled Guiding and Establishing National Innovation for US Stablecoins (GENIUS), initially failed to gain support from some Democrats on May 8 but passed a procedural vote in the Senate on May 20 with a 66–32 majority. It now moves to the Senate floor for full debate. The legislation aims to clarify stablecoin collateral requirements and enforce strict Anti-Money Laundering (AML) compliance.
“This act doesn’t just regulate stablecoins; it defines them as a trusted component of the financial ecosystem,” Grachev stated.
“With clear rules comes trust, and that’s exactly what institutions have been waiting for. Stablecoins are no longer a crypto experiment — they’re faster, simpler, and more transparent than fiat. It’s only a matter of time before they become the default form of money.”
GENIUS Act as a Step Toward a Digital Finance Infrastructure
Grachev believes the GENIUS Act could mark the first step toward a borderless, programmable digital financial infrastructure.
“When the U.S. acts on stablecoin policy, the world pays attention,” he said, adding that the bill could trigger a broader shift in the global financial system.
The bill is co-sponsored by Republican Senator Cynthia Lummis, who noted that Memorial Day could be a reasonable target for its passage.
Regulation Alone Isn’t Enough — Yield Matters
However, Grachev emphasizes that regulatory clarity alone is not sufficient. Institutional investors also seek stable and predictable yield products. His firm, Falcon Finance, is currently developing synthetic yield-bearing dollar instruments tailored to meet this demand.
As of now, yield-bearing stablecoins make up approximately 4.5% of the total stablecoin market, with a circulation value around $11 billion.
Offshore Issuers Remain a Challenge
Despite the support for the GENIUS Act, some experts have voiced concerns. Vugar Usi Zade, COO of Bitget exchange, noted that the bill fails to address offshore stablecoin issuers like Tether, which still play a major role in global liquidity.
“The bill will likely impose higher costs on U.S.-based issuers, which may drive market consolidation and benefit firms with stronger resources,” Zade said. Nevertheless, he acknowledged that depending on its implementation, the law could contribute to a more stable and reliable stablecoin ecosystem.
In essence, the GENIUS Act represents the first comprehensive effort by the U.S. to set clear rules for the stablecoin market, and it could serve as a global benchmark moving forward.
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