The United States just enacted a comprehensive stablecoin framework via the GENIUS Act, signed into law in July 2025. It sets who can issue dollar-pegged coins, which reserves they must hold, how fast they must redeem, and what they must disclose—ushering in a new era for on-chain dollars, fintech, and DeFi. US Treasury Fact Sheet.
1) Quick Summary
- Licensed issuers only: Banks and approved nonbanks (OCC or state) may issue payment stablecoins in the US. Foreign issuers must register and meet “comparable” standards. Conference Board explainer. :contentReference[oaicite:1]{index=1}
- 100% reserves: One-to-one backing in cash, short-dated US Treasuries (≤93 days), and similar highly liquid instruments; monthly public reserve disclosures. Treasury.
- Fast redemption: Clear, timely redemption rights for users; consumer-first conduct rules and marketing standards. Treasury.
- No interest: Issuers cannot pay interest/yield on stablecoin balances (separates payments coins from yield products). Conference Board. :contentReference[oaicite:4]{index=4}
- AML/BSA + supervisory tooling: BSA coverage and technical capabilities (e.g., to act on lawful orders) are required. Treasury.
2) Why this matters now
Stablecoins are already the largest real-world crypto use case. With US federal rules finally in place, banks, fintechs, and Web3 teams can build with clearer guardrails—potentially accelerating payments, remittances, and on-chain settlement. The law was signed in July 2025 and framed by policymakers as the first major US statute written specifically for a crypto asset class. National Law Review.
3) The rules at a glance
| Topic | What the GENIUS Act Requires | Why It Matters |
|---|---|---|
| Who can issue | Insured banks & approved nonbanks (OCC/state). Foreign issuers allowed only under comparable regimes and OCC registration. | Filters out unregulated issuers; aligns state & federal oversight. Treasury. |
| Reserves | 100% one-to-one in cash, ≤93-day Treasuries, eligible repos/tokenized forms; diversification and risk standards. | Strengthens convertibility; mitigates run & interest-rate risks. Conference Board. :contentReference[oaicite:8]{index=8} |
| Disclosures | Monthly public reserve breakdowns, auditor attestations, conduct & marketing rules. | Improves transparency and consumer protection. Treasury. |
| Redemption | Timely, reliable redemption into USD with clear terms. | Protects users; anchors the peg during stress. Treasury. |
| Interest to holders | Prohibited. | Separates “payments coins” from yield products (e.g., tokenized MMFs). Conference Board. :contentReference[oaicite:11]{index=11} |
4) Who stands to win (and lose)
- Banks & regulated fintechs: Clearer path to issuance and distribution, especially for B2B payments and embedded finance. Policy focus on safety could entice corporate treasurers and merchant acquirers.
- Tokenized MMFs: With interest banned on stablecoins, yield seekers may shift to tokenized money-market funds. Analysis. :contentReference[oaicite:12]{index=12}
- Foreign issuers: US access requires comparable rules, US custody of reserves (or reciprocal deals), and OCC registration—raising the bar to compete domestically. Conference Board. :contentReference[oaicite:13]{index=13}
5) Timelines and what to watch
6) Global context
The US move lands alongside the EU’s MiCA rollout and Asia’s stablecoin frameworks, pushing toward a more harmonized global standard for reserves, disclosures, and licensing. Watch for “comparable regime” determinations that could green-light cross-border distribution under the Act’s foreign-issuer rules. Policy backgrounder. :contentReference[oaicite:15]{index=15}
7) Bottom line
The GENIUS Act doesn’t end crypto regulation debates—it starts a more serious phase. With licensing, 100% reserves, fast redemptions, and strong disclosures, the US just set the template for dollar stablecoins in mainstream payments.
Frequently Asked Questions (FAQ)
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What is the GENIUS Act?
A 2025 US federal law that regulates payment stablecoins—setting licensing, reserve, redemption, and disclosure requirements. Treasury fact sheet.
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When did it become law?
It was signed in July 2025 after passage by Congress. National Law Review.
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Can big tech issue a stablecoin?
Public non-financial companies face limits unless they receive an exemption from a new interagency review committee. Summary of provisions. :contentReference[oaicite:18]{index=18}
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What do reserves look like?
One-to-one backing in cash, short US Treasuries (≤93 days), eligible repos, and tokenized equivalents—plus monthly public breakdowns. Treasury.
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Do holders earn yield?
No. Paying interest on stablecoin balances is prohibited; yield seekers may pivot to tokenized MMFs. Analysis. :contentReference[oaicite:20]{index=20}
Sources & Further Reading
- U.S. Treasury — Fact Sheet: GENIUS Act Implementation.
- National Law Review — GENIUS Act Signed Into Law (July 2025).
- The Conference Board — Stablecoin Law: New Era for Crypto. :contentReference[oaicite:23]{index=23}
- CRS Overview of the GENIUS Act (background). :contentReference[oaicite:24]{index=24}