Note on the GENIUS Act – U.S. Stablecoin Regulation (2025)

On July 18, 2025, U.S. President Donald Trump signed the GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins) into law. This landmark legislation establishes the first comprehensive regulatory framework for USD-pegged stablecoins in the United States.

Key Highlights:

* Stablecoins defined as a separate category—not securities or commodities.

* Mandatory 1:1 reserve backing in cash or T-bills, with monthly public audits.

* Issuers must be federally or state-chartered and comply with AML/KYC standards.

* Includes consumer protections such as par redemption and insolvency priority.

* A 3-year compliance window is granted for existing issuers.

* Presidential exemption clause has raised ethical concerns regarding conflicts of interest.

This act is expected to boost trust in stablecoin infrastructure, attract institutional adoption, and strengthen the U.S. position in global crypto regulation.