Catena

Why AI Builders Should Celebrate Passage of the GENIUS Act

Adam Berrey

The passage of the GENIUS Act marks a historic milestone for AI builders.

In case you're new to the stablecoin party, stablecoins are a form of cryptocurrency that is pegged to the value of the dollar (or another fiat currency) because it is backed by a 1:1 reserve of cash or treasury bills. Stablecoins combine the reliability and low volatility of government-backed fiat currency with the functionality of public blockchains.

Stablecoins are the ideal form of digital money for AI agents. They offer 24/7 near-instant settlement, very low transaction costs, the ability to use dollars worldwide, and programmability. Stablecoins make it much easier for AI agents to conduct commerce. They provide a way for agents to hold balances, make payments, and receive payments for a broad array of use cases.

The barrier to mainstream stablecoin adoption has been the lack of a clear regulatory framework and legal standing for US dollar stablecoins. Without regulatory clarity from the federal government, there was uncertainty about the legal and compliance risks of using stablecoins. This regulatory uncertainty held back adoption by established financial service providers such as banks, payment networks, and fintechs.

The passage of the GENIUS Act creates a clear legal status and regulatory scheme for stablecoins. This clarity will open the floodgates. Now, AI builders can be confident that stablecoins from regulated issuers, such as USDC from Circle (CRCL: NYSE), will be reliable, trustworthy, and overseen by federal and state regulators. In the coming months, you’ll see rapid adoption of stablecoins for mainstream payments use cases, including agentic commerce.

Regulated stablecoins and agentic financial solutions will have broad positive impacts on people and businesses, for example:

  • Faster, less expensive global remittances
  • New ways to discover and buy products online
  • Opportunities for small businesses to reach new customers
  • Better supply chain payment and financing
  • Global treasury management solutions
  • New ways to work with vendors globally

At Catena, we’re building on the opportunities created by the GENIUS Act. By providing a regulated financial institution that is purpose-built for the needs of AI agents, we’ll give your agents banking, payment, and treasury products that they can use to engage in global commerce safely and securely.

Welcome to the new era of AI money.