#StablecoinLaw

The GENIUS Act, signed into U.S. law on July 18, 2025, establishes the first federal regulatory framework for stablecoins. Key provisions mandate 1:1 reserve backing (liquid assets like cash/T-bills), monthly reserve disclosures, and prohibit interest payments to holders . Issuers must obtain federal or state approval as "Permitted Payment Stablecoin Issuers," with non-bank entities capped at $10 billion under state oversight .

Supporters hail it as a milestone for mainstream crypto adoption, projecting market growth from $260 billion to $2–$3.7 trillion, while bolstering dollar dominance via increased T-bill demand . Critics, however, warn of loopholes enabling money laundering and sanctions evasion, citing weak anti-fraud provisions and exemptions for foreign issuers . The law excludes presidential financial interests, drawing scrutiny over Trump-linked ventures like USD1 stablecoin . Implementation rolls out through 2026–2028, with banks like Citigroup poised to enter the market .