DigitalX backs US stablecoin breakthrough as turning point for global crypto adoption

The US Senate’s approval of landmark stablecoin legislation could unlock the next wave of institutional investment in crypto, says DigitalX.

On the rise: Stablecoin adoption could be set to dramatically spread. Pic via Getty Images

• US Senate passes Genius Act, setting US federal guardrails for stablecoins

• DigitalX says the bill reduces regulatory uncertainty and boosts investor confidence

• Stablecoin growth and global institutional interest expected to accelerate

 

Special Report: In a major win for the crypto industry, the US Senate has passed the Genius Act – the first federal law to regulate stablecoins.

The move is being widely hailed as a turning point for digital assets, and DigitalX (ASX:DCC) believes it will help bring crypto firmly into the global financial mainstream.

“This is a landmark moment for the cryptocurrency industry,” said Alex Nagorskii, portfolio manager at DigitalX.

“We see it as a crucial step towards the mainstream adoption of digital assets.”

The bill, which now moves to the House of Representatives, establishes clear rules for stablecoin issuers. It mandates a one-to-one reserve ratio, meaning each dollar of stablecoin must be backed by a dollar in reserve. Additionally, it requires compliance with anti-money laundering laws and other banking regulations.

“This legislative clarity significantly reduces the regulatory uncertainty that has long impacted the decentralised finance sector,” Nagorskii said.

Regulation builds confidence

The stablecoin market is already valued at over $240 billion. With companies like Visa, Mastercard, Amazon and Walmart investigating its potential, the Genius Act is anticipated to boost the sector’s growth.

“The act signals the US government's intent to support crypto and promote the US dollar's dominance in the digital space,” Nagorskii said.

Importantly, the bill provides a compliance framework that large institutions can rely on – a key factor that could attract significant investments from corporate treasuries, asset managers and superannuation funds that have, until now, remained inactive.

“This is the kind of progress that fosters innovation and attracts investment,” Nagorskii added.

DigitalX well positioned

As governments set clearer rules, DigitalX believes its early positioning in regulated digital finance provides it with a strategic advantage. The company manages Australia’s first spot Bitcoin ETF (ASX: BTXX), operates a growing staking treasury, and is expanding its infrastructure footprint through key partnerships.

“As regulation catches up with innovation, the barriers that have kept large capital pools on the sidelines begin to fall,” said Nagorskii.

“The future of digital assets is no longer theoretical. It is unfolding now. The passage of the Genius Act confirms that crypto is moving into the global financial mainstream,” he said.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

Originally published as DigitalX backs US stablecoin breakthrough as turning point for global crypto adoption