based on materials from the site - By Coinwy
The U.S. Treasury is seeking public feedback on the implementation of the GENIUS Act, aimed at regulating stablecoin issuers, after it was signed by President Donald Trump on July 18, 2025.
This initiative aims to strengthen the financial stability of the U.S. by tightening reserve requirements for stablecoins, which may lead to increased demand for U.S. government debt and impact the structure of the cryptocurrency market.
The law, developed by Congress, requires stablecoin issuers to obtain approval from the Federal Reserve and adhere to banking standards. The U.S. Treasury is currently working on detailed rules. Industry leaders in stablecoins have previously supported federal recommendations.
U.S. President Donald Trump stated: "The GENIUS Act will spur demand for U.S. government debt and strengthen the dollar's status as the world's reserve currency by requiring stablecoin issuers to back their assets with treasury bonds and U.S. dollars." - White House Bulletin
The law is expected to increase demand for U.S. Treasury assets as stablecoin issuers adjust their reserves. This may affect the liquidity of stablecoins and market stability. Stablecoins backed by U.S. dollars, such as USDC and USDT, are likely to be particularly impacted.
Financial changes include an increase in demand for Treasury bills due to reserve requirements, which affects overall economic dynamics. Policy outcomes will impact stablecoin operations and may change behavior in trading digital assets.
The request for feedback aligns with broader government efforts for strategic cryptocurrency regulation. It reflects a commitment to creating stable stablecoins backed by assets to strengthen the dollar's sovereignty.
Potential outcomes include aligning stablecoin legislation with existing laws, which will impact the financial situation. Historical trends indicate changes in the regulatory framework, affecting financial systems and the cryptocurrency market as a whole.
