#StablecoinLaw
🇺🇸 U.S. 🇺🇸 – GENIUS Act Signed into Law (July 18–20, 2025)
What it is: The Guiding and Establishing National Innovation for U.S. Stablecoins Act (“GENIUS Act”) is the first-ever federal law specifically regulating payment stablecoins—digital tokens pegged to fiat currencies like the U.S. dollar .
Key provisions:
100 % reserve backing in liquid assets (e.g., USD or Treasury bills), monthly audits and disclosures, AML and sanctions compliance under the Bank Secrecy Act .
Issuers must be licensed U.S. entities (e.g., bank subsidiaries, federally or state-chartered institutions); foreign issuers must meet comparable standards .
After three years (by July 2028), only compliant payment stablecoins can be offered or sold in the U.S. via digital asset platforms .
Timeline: Effective in 120 days after final rulemaking or 18 months post-enactment—whichever is earlier, meaning it could start between Nov 2025 and early 2027 .
Rationale & impact:
Aims to protect consumers, prevent illicit activity, and strengthen global dominance of the U.S. dollar and Treasury demand .
A hub for institutional capital and fintech innovation, though critics warn it may sideline non‑bank issuers and centralize power .
🌍 Global Context
Hong Kong also enacted its own stablecoin law this week (the “Stablecoins Ordinance”), setting a parallel regulatory standard; the U.S. and Hong Kong regulations together reshape global competition and financial autonomy .
🏛️ Related Crypto Policy Moves in U.S.
U.S. House passed two additional bills during the same "crypto week":
Clarity Act: Clarifies SEC vs. CFTC jurisdiction over digital assets.
Anti‑CBDC Surveillance State Act: Bans the Federal Reserve from issuing a retail U.S. central bank digital currency .
Full enforcement of these measures is staggered: rulemaking over the next year, but practical compliance steps unfold over the next 3+ years .
