GENIUS Act Clears the U.S. Senate, Unlocking Stablecoin Liquidity for Private Markets

A Landmark Bill for Dollar-Pegged Tokens

Yesterday, the Senate approved the Guiding and Establishing National Innovation for U.S. Stablecoins Act of 2025 (GENIUS Act) by a 68 – 30 margin. The bill:

1. authorizes both banks and vetted non-banks to issue “payment stablecoins”;

2. requires fully cash-backed, 1-for-1 reserves plus monthly public attestations;

3. grants a senior bankruptcy claim on those reserves;

4. creates a consolidated federal-oversight regime while preserving a state path;

5. Folds issuers into full AML/BSA compliance.

6. The House is expected to send a reconciled version to the President before the August recess.

Why Private Markets Should Care

Stablecoins already circulate at roughly $230 billion; analysts now forecast $2 – $3 trillion once regulatory clarity arrives. Witness the success of Circle Internet Group’s stock price (CRCL), which has seen a 500% increase since its IPO on June 5. Circle is the issuer of the stablecoin USDC. That is the largest untapped cash pool the private- markets world has ever seen, yet it currently earns almost zero yield and cannot touch illiquid partnership interests.

Meanwhile, limited partners who try to exit private funds hit three brick walls:

1. Time – settlements take 60–90 days, often longer

2. Price – 20–30% discounts to NAV

3. Opacity – one-off, brokered trades with little price discovery

That traps about $200 billion in sales attempts each year. It also shuts the door on DeFi treasuries and stablecoin pools. Crypto markets are hungry for safe, real-world yield, but they cannot touch a slow, paper-based secondary trade.

What Pontoro’s ALP Is and Why It Matters

Private equity was built for ten-year lock-ups, not the just-in-time cash culture of digital assets. Pontoro’s Automated Liquidity Pool (ALP) removes that mismatch:

1. The pool buys LP interests outright, paying sellers in hours, not months.

2. It tokenizes the pool with money-market-enhanced yields and flexibility for multiple share classes with differing liquidity and yield targets.

3. Every trade clears against an algorithmic discount curve published in real time on-chain and to market terminals, giving the asset class genuine transparency.

With GENIUS poised to legitimize US-dollar stablecoins, the ALP finally offers those tokens a productive, regulated destination while giving private-fund investors the liquidity they have long been promised.

Who Benefits Once GENIUS Meets the ALP

Stablecoin issuers: Class A tokens can qualify as “cash equivalents” under the Act’s reserve rules, letting issuers shift a slice of reserves from 5 % T-bills to 7–8 % money market yield enhanced by the addition of private credit yield, still bankruptcy-remote, still daily liquid.

Stablecoin holders: Permissioned wrappers, for example, could allow USDC or PYUSD (PayPal’s stablecoin) holders to swap seamlessly into Class A, collect real yield, and redeem on demand back into their original coins.

Digital-asset exchanges: Listing a regulated, high-quality yield token deepens order books and attracts institutional flow; price feeds publish to both on-chain oracles and traditional market data services.

Private-asset GPs & LPs: LPs gain deterministic exits; GPs keep governance control and can white-label their own liquidity pools, distributing tokenized private credit directly to the burgeoning stable-coin market without ETFs or interval-fund wrappers.

The Bigger Picture

The governance premium and long-term value creation embedded in private markets can now intersect far more scalably with public-market liquidity. GENIUS + Pontoro’s ALP offers the superior on-ramp: it channels crypto capital into professionally managed private-fund strategies, delivering enhanced yields to stable-coin holders while preserving the oversight and performance discipline that make private equity valuable in the first place.

Pontoro is ready to pilot its first ALP the moment the Act is signed, fully permissioned, KYC-compliant, and visible on both major exchanges.