#GENIUSAct The adoption of stablecoins by institutions could increase as the United States Senate prepares to debate a key law aimed at regulating the sector.

After failing to gain support from key Democrats on May 8, the U.S. Stablecoin Innovation Act (GENIUS) was approved by the U.S. Senate in a procedural vote of 66-32 on May 20 and is now headed for a full Senate debate.

The bill aims to establish clear standards for the collateralization of stablecoins and require compliance with anti-money laundering laws.

"This law not only regulates stablecoins, but legitimizes them," said Andrei Grachev, managing partner of DWF Labs and Falcon Finance.

"It establishes clear standards, and clarity generates trust. That is what institutions have been waiting for," Grachev told Cointelegraph during the daily X Spaces program of Chain Reaction on May 20, adding:

"Stablecoins are no longer a crypto experiment. They are a better form of money. Faster, simpler, and more transparent than fiat money. It’s only a matter of time before they become the default value".