On July 18, 2025, President Donald Trump signed the GENIUS Act into U.S. law, establishing a federal framework for regulating payment stablecoins.
The GENIUS Act impacts stablecoin issuers by mandating federal licensing and transparency, potentially altering the market landscape and prompting significant compliance enhancements.
The GENIUS Act has established a comprehensive federal framework for payment stablecoins in the U.S. It was signed into law by President Trump on July 18, 2025, following its introduction to the Senate in February.
Key players include the Office of the Comptroller of the Currency, the Federal Reserve Board, and the Federal Deposit Insurance Corporation. The Act mandates that stablecoin issuers are federally or state licensed, with reserves backed by liquid assets.
Mandatory 1:1 Reserve Impacts Stablecoin Issuers
The legal changes require issuers to maintain 1:1 reserves, impacting financial operations significantly. Institutional exchanges must adapt by only listing approved stablecoin issuers, leading to potential market shifts.
Financial and regulatory outcomes include prioritized user bankruptcy claims and oversight from banking regulators, not the SEC or CFTC. Historical trends and current data indicate evolving exchange compliance and potential shifts in market liquidity.
First U.S. Federal Regulation for Stablecoins
The GENIUS Act marks the first federal regulation in the U.S. for stablecoins, a move similar in scope to the EU’s MiCA regulations. Past attempts at similar regulation stalled without this comprehensive framework.
Experts from Kanalcoin suggest that the GENIUS Act will likely streamline the stablecoin market, enhancing regulatory clarity and potentially influencing broader crypto market trends. Historical data support optimistic projections for compliance and market stability.
“Today, we take a monumental step towards establishing a secure and robust framework for payment stablecoins in the United States.” — Donald Trump, President of the United States
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