On July 18, 2025, President Donald Trump signed the GENIUS Act, designed to establish a clear legal framework for stablecoin issuers. One month later, its impact is already visible: stablecoin-focused blockchains and corporate-issued tokens pegged to the U.S. dollar have become hot topics, while debates increasingly draw parallels with America’s 19th-century free banking era.
What the GENIUS Act Introduced
The GENIUS Act (Guiding and Enabling National Innovation for U.S. Stablecoins) sets firm rules for stablecoin issuers — cryptocurrencies tied to fiat currencies or other assets, most often the U.S. dollar.
Stablecoins have emerged as a practical payment tool. Unlike volatile assets such as Bitcoin or Ethereum, they maintain stable value, enable rapid cross-border transfers, and require only a crypto wallet. In high-inflation economies, they even serve as an alternative “savings account.”
According to David Sacks, the White House’s crypto policy advisor:
“Stablecoins have the potential to reinforce the international dominance of the U.S. dollar, expand its digital usage as the world’s reserve currency, and in the process generate demand for U.S. Treasuries worth trillions of dollars.”
The Act requires stablecoins to be fully backed and redeemable at any time, fueling demand for dollars and Treasuries. With planned integrations into Mastercard and other traditional payment systems, stablecoins are expected to gain mainstream adoption.
Rise of Corporate Stablecoins and New Blockchains
Even before the law was enacted, major corporations were preparing projects based on stablecoins. Apple, X, Uber, and Airbnb began working on integration plans.
A new trend has also emerged — layer-1 blockchains built specifically for stablecoins:
🔹 Circle is developing the Arc blockchain
🔹 Stripe is building Tempo
🔹 startups Stable and Plasma are creating their own stablecoin-focused chains
Outside the crypto sector, giants like Walmart, Meta, and Amazon have announced plans to launch their own tokens, while large banks (Wells Fargo, Citigroup, JPMorgan, Bank of America) are exploring a joint stablecoin project. Since July, the number of companies planning USD-pegged tokens has surged — including Société Générale, Revolut, and Fiserv.
Historical Parallels: Free Banking
As stablecoins gain traction, critics and supporters alike invoke comparisons to the free banking era of the 19th century, when U.S. banks issued private currencies backed by gold reserves with limited government oversight.
Skeptics warn of chaos similar to “wildcat banknotes,” while proponents argue that the GENIUS Act directly addresses those risks through 100% reserve requirements and strict regulation.
Crypto investor Nic Carter emphasized in an essay that, unlike the unreliable currencies of the past, today’s stablecoins are safeguarded by the new legal framework:
“Historical lessons from free banking actually justify the stablecoin project rather than undermine it.”
Matt Hougan, CIO of Bitwise, also rejected the analogy, noting that unlike 19th-century banknotes, stablecoins enjoy instant exchangeability, transparent pricing on exchanges, and capped issuance (a $10 billion limit per state-regulated token).
What’s Next?
One month is too short to measure the full consequences. Yet it is already clear that the GENIUS Act has sparked a wave of innovation, bringing stablecoins to the center of global finance. What was once a gray zone is becoming a regulated industry — one where tech giants and the world’s largest banks are eager to compete.
Whether stablecoins truly become the “digital dollar for everyone” — or repeat the mistakes of America’s wild banking era — will only become clear in the years ahead.
#Stablecoins , #GENIUSAct , #bitcoin , #Ethereum , #CryptoRegulation
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