#StablecoinLaw The U.S. "Guiding and Establishing National Innovation for U.S. Stablecoins Act," or GENIUS Act, was signed into law on July 18, 2025, marking the country's first major federal stablecoin legislation. This law establishes a comprehensive regulatory framework for dollar-pegged cryptocurrencies.

Key provisions include requiring stablecoins to be 1:1 backed by highly liquid assets like U.S. dollars and short-term Treasury bills. Issuers must also publicly disclose the composition of their reserves monthly. The act aims to enhance consumer protection, promote innovation, and reinforce the U.S. dollar's global standing.

While hailed by proponents as a crucial step for mainstream crypto adoption and a boost for the U.S. financial system, critics raise concerns about potential systemic risks if stablecoin issuers falter and the law's perceived lack of stringent anti-money laundering measures. The law is expected to drive significant growth in the stablecoin market, with projections of reaching $2 trillion by 2028.