📘 Overview of the GENIUS Act (stablecoin law in the United States)
The GENIUS Act was signed by President Trump on July 18, 2025, after passing in the House (July 17) and the Senate (June 17).
It establishes a clear federal regulatory framework for stablecoins, requiring reserves fully covered by liquid assets (USD or Treasury bills), monthly audits, and rigorous AML measures.
The goal: to strengthen trust, transparency, and facilitate institutional adoption, particularly by traditional banks.
🔍 Strengths and weaknesses of the framework
✅ Positive points
Legal clarity for issuers, hype for stablecoin innovation and adoption by fintech and banking actors.
Increased financial transparency with public disclosure of reserves, comparable to the regulatory obligations of traditional banks.
Bipartisan adoption, a precious political signal towards stability and regulatory predictability.
⚠️ Critiques and risks
Consumers and associations denounce supervision deemed insufficient, a lack of protections against dominant players or Big Tech.
Some mention a risk of shadow banking, with traditional financial institutions abusing the framework to circumvent stricter regulations.
Concerns persist about the impact of these laws on competition, centralization, and increased oversight by authorities.
🌍 International comparison
In the European Union, the MiCA regulation has already imposed similar obligations since April 2023 (transparency, reserves, compliance) for stablecoins.
Countries like Singapore (Stablecoin Regulatory Framework, 2023) and the United Kingdom (law expected in a few months) are also putting similar provisions in place.
🧭 My professional opinion
The American law, although late, marks a major milestone for the sector:
It establishes a solid legal basis for reliable stablecoins, which can encourage institutional buy-in.
However, the lack of robust safeguards, the potential for abuses by powerful actors, and gaps in consumer protections deserve vigilance.
The actual effectiveness will also depend on the implementing decree, coordination between state and federal levels, and possible complementary regulations (e.g., STABLE Act).
✅ Conclusion
The GENIUS Act represents a legal turning point for the stablecoin market in the United States, with increased transparency and institutional recognition.
Its advantages are real, but critics highlight a need for improvements, particularly in consumer protection and prevention of abuses.
To watch: practical implementation, complementary rules (state or STABLE Act), and the assessment of financial stability.
