U.S. Moves Closer to Stablecoin Regulation with GENIUS Act.
The U.S. is nearing approval of the GENIUS Act, its first major federal stablecoin regulation. The bill creates a dual oversight system, with both federal and state roles. Stablecoin issuers must maintain 1:1 reserve backing, meet anti-money laundering rules, and release monthly reserve reports. Algorithmic stablecoins are banned. The goal is to enhance consumer protection and trust while supporting innovation. Some Senate Democrats oppose the bill, citing security and fraud risks. Concerns have also emerged over Donald Trump’s $2 billion stablecoin deal linked to a UAE-backed firm. If enacted, the GENIUS Act could position the U.S. as a global leader in digital asset regulation. A final vote is expected within two months.