#StablecoinLaw

The GENIUS Act—signed into law on July 18, 2025—establishes the first federal regulatory framework for U.S. payment stablecoins, mandating 1:1 reserves in cash or short-term Treasuries, monthly audits, and strict AML/KYC compliance. It sets up dual oversight—larger issuers fall under federal regulators, while smaller ones may opt for state supervision—and excludes stablecoins from being classified as securities. While industry leaders praise its clarity and innovation boost, critics warn of systemic risks and potential conflicts of interest tied to high-level crypto holdings.