#GENIUSAct 🏛️ What Is the GENIUS Act?
Full Name: Guiding and Establishing National Innovation for U.S. Stablecoins Act.
Signed into law: July 18, 2025, by President Trump .
Bipartisan support: Passed Senate 68–30 on June 17, and House 308–122 on July 17 .
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⚙️ Core Provisions
1. **Issuers must be “permitted”**
Only U.S.–based or equivalently regulated foreign entities, overseen by OCC, FDIC/Fed/NCUA .
2. 1:1 reserves in liquid assets
Backed exclusively by U.S. dollars or short-term Treasuries, with monthly reserve disclosures and audits .
3. Consumer protections
Redemptions must be honored promptly; holders get priority in bankruptcy; anti-money laundering rules under the Bank Secrecy Act apply .
4. Clarity on legal status
Defines compliant stablecoins as neither securities nor commodities .
5. Foreign issuer rules
Foreign stablecoins may be offered only if regulated by a comparable framework and approved by U.S. regulators .
6. Implementation timeline
Becomes effective 18 months after enactment or 120 days after final regulations, whichever is earlier .
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🌍 Why This Matters
Legitimizes stablecoins as safe, regulated instruments for everyday and cross-border payments .
Boosts U.S. dollar and Treasury demand, reinforcing dollar dominance .
Levels the regulatory playing field, allowing banks, fintechs, and certified nonbanks to issue stablecoins .
Addresses industry pressure: longtime goal of formal crypto jurisdiction, as part of recent “Crypto Week” legislation .
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⚠️ Concerns & Criticism
Consumer risk: Critics say protections may not fully address redemption issues, hidden fees, or differentiate FDIC-type guarantees .
Regulatory loopholes: Some fear large tech companies or foreign issuers may circumvent oversight .
Potential conflicts of interest: President Trump’s personal crypto investments have raised questions about the legislation’s impartiality .