The Guiding and Establishing National Innovation for U.S. Stablecoins Act, signed on July 18, 2025, establishes the first federal framework for payment stablecoins in the U.S., defining issuers, reserve mandates, licensing, audits, and consumer safeguards .

Key provisions include:

1:1 reserve backing in cash or U.S. Treasuries, segregated from operations and audited monthly

Dual licensing framework: entities under $10 billion can operate under state authorities; larger issuers under federal oversight by OCC or Fed

Mandatory AML/KYC compliance, public disclosures, and prioritization of holders in insolvency scenarios

Proponents hail the law as a milestone for regulatory clarity and institutional adoption; critics warn it may lack stringent consumer protections and allow political conflicts given Trump-affiliated investments .