#StablecoinLaw

The GENIUS Act, signed into law by President Donald Trump on July 18, 2025, marks a significant milestone for the crypto industry. Here's what it means:

Key Provisions

- Clear Stablecoin Regulations: The act establishes a regulatory framework for USD-backed stablecoins, requiring projects to hold 1:1 dollar reserves. This move aims to enhance trust and stability in the market.

- Insider Trading Restrictions: Congress members and their families are banned from making money off stablecoins to prevent conflicts of interest. However, this rule doesn't apply to Trump or his family.

- Boosting U.S. Leadership: The GENIUS Act aims to reassert American leadership in global finance and the crypto industry. Trump described it as a "giant step" and "massive validation" for the space.

Impact on Stablecoins

- Stablecoin Issuance: The law limits stablecoin issuance to federally insured banks, credit unions, and licensed non-banks.

- Reserve Requirements: Stablecoin issuers must maintain full reserves and undergo regular audits.

- Anti-Money Laundering: Issuers must comply with anti-money laundering and sanctions laws.

Next Steps

- Regulatory Clarity: The GENIUS Act provides much-needed clarity for financial institutions adopting stablecoins.

- Future Legislation: The crypto industry is now focused on passing the CLARITY and Anti-CBDC Acts, which will further shape the future of crypto regulation.