GENIUS Act cements stablecoins as future of finance, booster of USD: BlackRock

BlackRock, touted among the largest asset management firms internationally, has predicted that stablecoins are set to become a crucial part of the future of finance. The New York-headquartered company credited the newly approved GENIUS Act for cementing the position of stablecoins in America’s financial ecosystem.

U.S. President Donald Trump signed the GENIUS Act into a law on July 18. The new legislation firmly establishes stablecoins as a means of payment and not as an investment tool. This regulation additionally prohibits stablecoin issuers from paying interest and restricts their issuance to only federally regulated banks.

BlackRock’s stablecoin estimations

As per senior BlackRock analysts, this legislation has a strong chance of enabling a tokenized USD-based international payment system — reinforcing the dollar dominance on the global economy.

“We see stablecoins as a new part of the future of finance – and new U.S. legislation is aiming to put the U.S. at the center of digital asset innovation,” the weekly market commentary by BlackRock noted.

BlackRock’s analysis predicting a rebound in USD’s dominance arrives just as de-dollarization efforts in other parts of the world had begun to challenge its global standing.

In the post COVID-19 era, the U.S. federal reserve resorted to back to back hikes in interest rates that spelled out hefty financial burdens on smaller economies that rely on the USD for their financial balance.

Between March and December last year, reports of the BRICS nations planning to create an internal payment system, independent of the USD, started to make it to the headlines. The plan was to de-dollarize the internal settlement systems among members of the BRICS group. The development eventually caught President Trump’s attention in December 2024 who critized the situation and threatened major tariff escalations.

Prediction for BTC by BlackRock

For now, however, BlackRock said it is still a matter of time before the performance of stablecoins can thoroughly be assessed against other assets including BTC.

“Though stablecoins are small relative to the size of the overall crypto
universe at a seven percent share, their adoption has grown quickly since 2020 to reach about $250 billion. It’s not clear how stablecoins will compete with other digital assets,” the wealth management firm noted.

Bitcoin, meanwhile, is being projected as strong candidate expected to rise in position as a return diversifier in the coming times.

“This has been a banner year for Bitcoin, up 25 percent this year as the U.S. is in the process of adopting a couple of key laws aimed at bringing digital payments and assets into the mainstream – and making the U.S. the crypto capital of the world. We still see Bitcoin as a distinct return driver,” BlackRock added.