#GENIUSAct
The GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins Act) is a landmark piece of U.S. law, signed by President Trump on July 18, 2025, establishing the first federal regulatory framework specifically for payment stablecoins—digital tokens pegged to the U.S. dollar The Washington Post+15Wikipedia+15The Times of India+15.
🧩 Key Provisions
Who can issue stablecoins: Only licensed Permitted Payment Stablecoin Issuers (PPSIs)—regulated by either federal agencies or state authorities if under $10B, with mandatory transition to federal oversight once they exceed that threshold Crypto Briefing+3gtlaw.com+3Investopedia+3.
1:1 Reserve Backing: All U.S.-pegged stablecoins must be fully backed by U.S. dollars or short-term Treasuries, with funds held separately, audited externally, and with monthly public disclosures Pillsbury Law+2Investopedia+2The White House+2.
Consumer protections & AML: Issuers must comply with the Bank Secrecy Act, including KYC/AML/sanctions checks, cannot mislead users into thinking stablecoins are govt‑backed, and must prioritize stablecoin holders in insolvency scenarios The White House.
Federal-state balance & foreign reach: Includes dual supervision (state/federal), clear preemption rules, and extends jurisdiction to foreign stablecoin issuers targeting U.S. users gtlaw.com+1Pillsbury Law+1.
Regulatory timeline: Agencies (Fed, OCC, FDIC, etc.) have 180 days to develop final regulations, with full enforcement expected around November 2026 Crypto Briefing.
🚀 Significance & Market Reaction
Stablecoin clarity: Provides a legal foundation that may drive broader acceptance in retail, e‑commerce, remittances, and integration with platforms like Shopify Investopedia.
Boost for U.S. financial dominance: By mandating Treasury-backed reserves, it supports demand for U.S. debt and strengthens the dollar’s global role Investopedia+4The White House+4MarketWatch+4.
Positive market response: Crypto firms like Coinbase, Circle, Gemini saw stock gains, though Bitcoin took a slight dip.
