GENIUS Act Sparks Stablecoin Market Split as Institutions Rush to Regulated Coins

The GENIUS Act's impact on the stablecoin market is shifting from compliance to liquidity one year after its implementation.

Institutions may move towards regulated stablecoins before 2028, reshaping U.S. crypto markets and changing where liquidity flows.

Tether has until July 2028 to meet most of the law's requirements, but many believe banks and large investors won't wait that long.

Circle, the issuer of USDC, is in a stronger position to attract banks, asset managers, and public companies due to its preparation for the new rules.

Kevin Wysocki, head of policy at Anchorage Digital, believes institutions will switch to compliant stablecoins long before the 2028 deadline instead of waiting for the rules to take full effect.