While the U.S. Senate recently blocked the GENIUS Act legislation designed to provide a clearer regulatory framework for stablecoins the global momentum behind stablecoins shows no signs of slowing. Major companies including Meta, Visa, and Mastercard are pushing forward with integration plans, and new innovations such as privacy-centric and “dark” stablecoins are beginning to emerge, signaling a new phase in the evolution of digital finance.
Big Tech and Fintech Embrace Stablecoins
Stablecoins have become the most widely used type of cryptocurrency due to their price stability and transactional efficiency. As of 2025, the average circulating supply of stablecoins has reached $521 billion, outpacing Visa’s $319 billion and PayPal’s $32 billion, highlighting their growing dominance in the global financial ecosystem.
Now, the next major leap for stablecoins may come from Meta, which reportedly plans to enable crypto transactions using stablecoins like USDC and USDT across its vast app network, according to Fortune. While no official timeline has been confirmed, this move would introduce stablecoin-based payments to billions of users worldwide—reviving elements of Facebook’s abandoned Libra/Diem vision under a more compliant approach.
Meanwhile, Visa is already conducting stablecoin transaction pilots, with over $220 million in stablecoin payments processed since 2023. On May 6, Visa Ventures announced an investment in BVNK, a stablecoin infrastructure firm. Furthermore, Visa is partnering with Stripe’s Bridge to roll out stablecoin payment capabilities in several countries, with a particular focus on Latin America.
Not to be outdone, Mastercard has entered into partnerships with leading crypto platforms such as Binance, OKX, Kraken, Gemini, MetaMask, and Bybit, enabling stablecoin payments at more than 150 million merchant locations globally.
Political Gridlock: The Fall of the GENIUS Act
Despite these commercial advancements, the GENIUS Act, which aimed to deregulate and streamline the stablecoin framework in the U.S., failed to pass in the Senate due to opposition from Democratic lawmakers. Senator Elizabeth Warren and other critics labeled the bill a “crypto power grab,” citing concerns over money laundering, foreign influence, and potential conflicts of interest.
Democrats argue that the bill lacks sufficient safeguards in key areas, including financial system soundness, foreign issuer transparency, AML protocols, and national security. They are pushing for stronger provisions before allowing any legislation that could enable broader adoption or expansion of stablecoin use in the U.S.
The Rise of “Dark Stablecoins” and Privacy-Preserving Alternatives
In light of growing regulatory oversight, the concept of “dark stablecoins” is gaining traction. CryptoQuant CEO Ki Young Ju warned that stricter controls, such as tax-collecting smart contracts and wallet blacklisting, may drive users toward decentralized or non-compliant alternatives.
Ju outlined two potential paths for dark stablecoins:
- Algorithmic models that avoid centralized control.
- Foreign-issued stablecoins in jurisdictions that do not enforce transaction censorship.
Although no true dark stablecoin exists yet, Ju speculates that Tether (USDT) could evolve in that direction if it chooses to defy future regulations.
Despite the controversy, Tether CEO Paolo Ardoino confirmed at the Token2049 event that the company is working on a new USD-pegged stablecoin aligned with forthcoming U.S. legal standards, with plans to launch it in 2025.
Additionally, Charles Hoskinson, founder of Cardano, revealed in a recent eToro podcast that Cardano is developing the first-ever privacy-focused stablecoin, aiming to strike a balance between regulatory compliance and user privacy.
Regulation or Not, Stablecoins Are Evolving
While U.S. lawmakers struggle to find consensus on crypto regulation, the global stablecoin ecosystem is forging ahead. Whether through Big Tech integrations or new privacy-preserving models, stablecoins are rapidly expanding their utility and reach.
The collapse of the GENIUS Act may slow legislative clarity in the U.S., but it won’t stop innovation. From Visa-backed payment infrastructure to privacy-driven alternatives on Cardano, stablecoins are shaping up to be the centerpiece of mainstream crypto adoption in 2025 and beyond.
