GENIUS Act Enacts New Stablecoin Regulations in the U.S.

In Washington D.C., the GENIUS Act was signed into law by President Trump on July 18, 2025. It establishes a new federal regulatory framework for stablecoins in the U.S.

The GENIUS Act introduces strict rules for stablecoins, impacting liquidity strategies and influencing market dynamics. Its ambiguity on foreign issuers creates uncertainty in the global crypto landscape.

The GENIUS Act aims to establish the first comprehensive regulatory framework for U.S. stablecoins. Regulating domestic issuers, the Act remains notably vague on foreign issuer requirements, potentially influencing global financial strategies.

President Trump signed the Act, with oversight divided between the Office of the Comptroller of the Currency and state regulators. It demands stablecoins be backed 1:1 by U.S. dollars, impacting issuers’ liquidity strategies significantly.

U.S.-regulated stablecoins like USDC face immediate impacts, reallocating institutional capital. Unregistered and foreign stablecoins face uncertain paths. Cryptocurrencies like BTC and ETH may experience liquidity shifts due to regulation.

The GENIUS Act models the EU’s MiCA closely but introduces stricter restrictions. U.S. digital asset service providers will need to phase out unauthorized foreign stablecoins within three years, reshaping the market landscape.

The Act requires that foreign issuers comply with OCC-supervised standards. However, the exact criteria remain undefined. This creates uncertainty for foreign stablecoin projects navigating entry into the U.S. market.

“As of the current date, there seem to be no publicly available quotes from major industry figures or officials specifically addressing the GENIUS Act and its implications for foreign stablecoin issuers.”

GENIUS Act’s lack of clarity on foreign issuer regulations leaves global stablecoin operations in a precarious position. More precise guidelines may be expected by 2027, as the compliance deadline approaches for international digital currency issuers.