$USDC The GENIUS Act, or the Guiding and Establishing National Innovation for U.S. Stablecoins Act, is a landmark piece of U.S. legislation primarily focused on establishing a comprehensive federal regulatory framework for stablecoins. These cryptocurrencies are designed to maintain a stable value, typically pegged to the US dollar.

The bill aims to bring clarity, consumer protection, and financial stability to the rapidly growing stablecoin market. Key provisions include mandating 1:1 reserve backing with high-quality liquid assets like US dollars or Treasury bills, regular public disclosures of reserve composition, and strict redemption rights. It also seeks to prevent destabilizing runs through tailored regulatory requirements for capital, liquidity, and risk management.

Passed by the Senate in June 2025, the GENIUS Act seeks to define stablecoins as payment instruments rather than securities, offering a clearer legal basis for their use. While primarily a U.S. initiative, its passage could set a precedent for global stablecoin regulation and impact how blockchain-based financial infrastructure scales internationally. It underscores a growing recognition of stablecoins' importance in the digital economy and the need for robust oversight.