In mid‑July 2025, President Trump signed the GENIUS Act into law, marking the first time stablecoins received federal regulation in the U.S. The legislation lays out strict rules requiring dollar‑pegged tokens to hold full reserves in U.S. dollars or short‑term Treasuries, subject issuers to monthly audits and anti-money‑laundering standards, and creates a dual federal‑state oversight system.
It also defines a limited set of qualifying issuers—banks, federally chartered nonbanks, and state‑regulated firms under $10 billion—and requires secured segregation of funds so issuer operations can’t dip into reserves. Notably, the law exempts stablecoins from SEC or CFTC classification, effectively treating them as cash equivalents. Members of Congress are barred from profiting from them, and foreign issuers with U.S. influence must comply with U.S. regulations.
Since its enactment, the global crypto market surpassed $4 trillion in total value. Supporters argue the law boosts consumer confidence, encourages broader use of digital dollars, and supports demand for U.S. Treasury debt. Critics, however, point to gaps in consumer protection and potential advantages for big tech and large institutions.
