BERNSTEIN: STABLECOINS COULD BECOME INTERNET’S MONEY RAIL UNDER NEW LAW Bernstein says the GENIUS Act, up for a Senate vote this week, could transform stablecoins from a crypto tool into a core part of internet finance. The law would create a clear framework for U.S. stablecoin issuers and bar non-compliant foreign ones. Key points: 🔸 Three issuer types: bank subsidiaries, OCC-approved firms, and state-qualified entities 🔸 Strict reserves: 100% backed by short-term U.S. Treasuries, repos, or deposits 🔸 Not deposits or securities, but treated as digital cash 🔸 Full compliance rules: AML/KYC and restrictions for non-financial firms Bernstein sees this as a foundation for the next wave of financial innovation and stablecoins’ integration with capital markets.