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U.S. Stablecoin Law (2025): Key Details from the GENIUS Act

Overview

In July 2025, President Donald Trump signed the GENIUS Act into law, establishing the first comprehensive federal regulatory framework for stablecoins. This legislation is a significant milestone for the cryptocurrency industry, providing long-awaited clarity on how dollar-pegged digital assets will be governed in the United States.

What Are Stablecoins?

Stablecoins are digital assets designed to maintain a fixed value—most commonly pegged 1:1 to the U.S. dollar. They are typically backed by dollar reserves or short-term U.S. Treasury bills. Unlike cryptocurrencies such as Bitcoin, stablecoins are intended for stable, low-volatility use cases such as digital payments and cross-border transfers.

Who Can Issue Stablecoins?

Beginning in July 2028 (three years after the law’s enactment), only entities classified as "Permitted Stablecoin Issuers" will be allowed to issue payment stablecoins within the U.S.

Eligible issuers include:

Federal qualified issuers: Entities directly regulated under a federal oversight regime.

State qualified issuers: Firms regulated at the state level under regimes deemed “substantially similar” to the federal framework.

Foreign issuers: May be approved if they meet strict transparency, compliance, and reserve standards.

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