Stablecoin legislation may impact Visa's stock price, but strong competitive position indicates stability.

From Nasdaq: 2025-06-22 18:05:00

The United States Senate approved stablecoin legislation known as the GENIUS Act, which aims to regulate new currencies pegged to the U.S. dollar. Issuers will now need to hold reserves and undergo regular audits. Investors are anticipating increased customer adoption, potentially impacting Visa’s payment volume and profits. Retail giants Walmart and Amazon are exploring creating their own stablecoins to avoid high credit card fees, potentially saving billions annually. However, stablecoins face challenges in replicating Visa’s global scale and customer rewards, making mass adoption difficult. Visa’s strong competitive advantage and scale suggest it is not threatened by stablecoins.

While stablecoin legislation may impact Visa’s stock price, the company’s strong competitive position and earnings growth make it a stable long-term investment. Visa’s high P/E ratio indicates it is currently trading at an expensive valuation. The Motley Fool’s Stock Advisor team did not include Visa in their list of top 10 stocks, suggesting other investment opportunities may offer higher returns. Joining Stock Advisor provides access to their top stock picks, which have historically outperformed the market. John Mackey, former CEO of Whole Foods Market, is a member of The Motley Fool’s board. The Motley Fool holds positions in Amazon, Visa, and Walmart.



Read more at Nasdaq: Stablecoin Disruption: Time to Sell Your Visa Stock?