The GENIUS Act is not just a law on stablecoins. It is the first systemic document in the U.S. where digital currencies began to be regulated as financial infrastructure, not as a temporary phenomenon. Signed by Trump on July 18. Passed with nearly bipartisan agreement. Almost no one is against it — and that is already interesting in itself.
What the law does:
🔹The issuer of a stablecoin must hold 100% of reserves in liquid assets (dollars, Treasuries)
🔸Public reporting on reserves — every month
🔹Clear rules on advertising and statements (no hints of government support)
🔸In case of default: first holders of coins, then everyone else
🔹Unification of regulation: federal standard, uniform for all states
Essentially, this is a 'box of rules' for those who want to work with digital dollars in the U.S. Transparent, clear, predictable. And thus — convenient for institutional players. And inconvenient for those who built products 'in the gray area.'
🔸 How this will affect the market:
Stablecoin → Infrastructure
If earlier stablecoins were like the 'use cases' of crypto, now they begin to resemble a sovereign shell of the dollar. GENIUS turns them into an integral part of the payment layer. The market has understood this: the capitalization of the top 3 stablecoins is growing again, turnover within DeFi is up.
Increased demand for Treasuries
GENIUS directly stimulates the purchase of short-term government debt: the more the turnover of stablecoins — the more dollar reserves are needed, and thus more liquidity for the Treasury. This is a hidden, but important support for the U.S. fiscal pipeline.
Defragmentation of jurisdictions
If earlier companies chose between Wyoming, New York, or offshore — now there is a common field. The jurisdictional arbitrage game is over. Risks are reduced, entry into the market becomes more expensive but safer.
Altcoins in focus
Generalized trust in stablecoins enhances interest in other segments: ETH, SOL, L2, infrastructure. If the calculation part has become clear, it makes sense to strengthen the logical part — DeFi, loans, derivatives.
Regulatory precedent
This is the first brick. Next will be the Digital Asset Market Clarity Act, Anti-CBDC Surveillance Act, and everything related. The entire digital economy will be framed in a legal shell. The U.S. has decided not to fight crypto, but to subordinate it to the logic of capital.
The effect from GENIUS is already priced in. But the consequences will last for years.#GENIUSAct #Trump2024
