#StablecoinLaw
President Trump Signs Landmark GENIUS Act, Creating First Federal Stablecoin Framework
On July 18, 2025, President Trump signed the GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins) into law, establishing the first federal regulatory framework for dollar-pegged stablecoins. The bipartisan bill passed the Senate 68-30 and the House 308-122 during "Crypto Week," marking a watershed moment for the $260 billion stablecoin market .
Key provisions include:
- 1:1 Reserve Mandate Stablecoins must be fully backed by high-quality assets like cash or short-term Treasuries, with monthly disclosures and audits .
- Dual Regulatory Pathways Issuers under $10B can opt for state oversight (if certified "substantially similar" to federal rules), while larger issuers face Federal Reserve/OCC supervision .
- No Interest Payments Stablecoins cannot pay yield, distinguishing them from bank deposits .
- Foreign Issuer Rules: Non-U.S. firms must meet equivalent standards to operate domestically .