GENIUS Act and PayPal Drive Stablecoin Payments into Mainstream

Published: 2025-08-20 06:13:42 |

US Congress passed the GENIUS Act, creating a clear regulatory framework requiring regulated issuers and 1:1 fiat reserves for stablecoins, legitimizing crypto payments. This landmark law brings stablecoin payment into the legal mainstream. Tech giants like Google, Uber, Apple and Shopify are exploring integration of stablecoin payments in their systems. PayPal’s “Pay with Crypto” service converts users’ cryptocurrencies into stablecoins or fiat at checkout, enabling merchants to access 650 million crypto users. Major financial institutions such as Visa and Mastercard are positioning to support stablecoin transactions via infrastructure roles. Meanwhile, CBDCs and tokenized central bank reserves are under active exploration, promising efficiency and security in cross-border payments. A YouGov-Reown survey shows 37% of crypto users believe payments and AI will drive adoption by 2025, with 34% already using crypto payments. Challenges remain in ensuring reserve stability, AML compliance, system integration and user trust. Overall, regulatory clarity and corporate initiatives are accelerating crypto payments from niche use to mainstream commerce, setting the stage for a more efficient and inclusive digital economy.

Bullish

The GENIUS Act’s regulatory clarity reduces legal uncertainty around stablecoin issuance and payments, encouraging wider adoption in commerce. PayPal’s entry with Pay with Crypto lowers merchant barriers, enabling direct crypto acceptance. Historical parallels, such as the initial Bitcoin acceptance by major retailers, show corporate adoption often sparks increased trading volume and price improvements. In the short term, this news may boost demand for stablecoins and major tokens used in payments rails, enhancing market liquidity. Over the long term, the integration of crypto payments into mainstream financial infrastructure and potential CBDC interoperability could solidify digital assets’ role, driving bullish market sentiment and institutional investment.