#StablecoinLaw Stablecoin Law in the U.S.
The U.S. has enacted its first major federal law governing cryptocurrencies, specifically stablecoins, with the passage of the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act. President Donald Trump signed the bill into law on July 18, 2025
Key Provisions of the GENIUS Act
- *Regulation of Stablecoin Issuers*: The law establishes a federal licensing and supervisory framework for payment stablecoins and their issuers.
- *Reserve Requirements*: Stablecoin issuers must maintain reserves backing their stablecoins on at least a 1:1 basis with safe assets like U.S. currency or Treasury bills.
- *Anti-Money Laundering Rules*: The law includes strict anti-money laundering rules for stablecoin issuers.
- *Ban on Interest Payments*: Stablecoin issuers are prohibited from paying interest to stablecoin holders.
- *Permission for Commercial Entities*: Commercial entities like banks, retailers, and tech companies can issue compliant stablecoins
Impact and Outlook
- The law is expected to boost the market for stablecoins, potentially growing from $238 billion to $2 trillion.
- Stablecoins are designed to hold a steady value by being pegged to a stable asset like the U.S. dollar.
- The legislation reinforces U.S. dollar dominance globally.
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