With the passage of the GENIUS Act on July 18, 2025, the U.S. has rolled out its first comprehensive federal stablecoin regulation, transforming how payment stablecoins operate. Issuers must wholly back their tokens with U.S. dollars or short-term Treasuries, comply with anti-money laundering rules, and prioritize consumer claims in the event of insolvency. Importantly, only “Permitted Payment Stablecoin Issuers”—licensed banking entities or federally authorized nonbanks—can issue compliant stablecoins, and foreign issuers must meet comparable standards to access U.S. markets. This legislation delivers clarity for financial institutions and accelerates the integration of digital dollars into traditional finance.

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