US House Passes the GENIUS Act for Stablecoin Regulation

The US House of Representatives has passed the GENIUS Act, concerning stablecoin regulation, awaiting President Trump’s signature.

This legislation significantly impacts the cryptocurrency landscape, establishing comprehensive regulation for stablecoin issuers. Immediate changes in stablecoin markets are anticipated.

The GENIUS Act, sponsored by Senator Bill Hagerty, aims to create a federal-state framework for regulating payment stablecoin issuers. It follows rigorous committee discussions and roll call votes. The Act awaits President Trump’s approval after clearing the House with a 308-122 vote, highlighting bipartisan support. Once signed, the Act initiates a “regulatory regime,” impacting major stablecoins such as USDC, USDT, and DAI. The legal framework requires state and federal alignment to eventually permit issuance only under specific guidelines after the proposed November 2026 implementation date.

Stablecoin issuers must prepare for increased scrutiny and compliance, potentially altering market dynamics. This legislation’s financial implications will shape the futures of Ethereum, Solana, and Tron, the primary networks for stablecoin transactions. Regulatory clarity offers potential for new stablecoin development pathways. Historical trends suggest platforms may see liquidity adaptations towards regulated entities. Current stablecoins could experience shifts in adoption rates as the GENIUS Act unfolds across the industry.

Overall, the GENIUS Act signifies a turning point in US crypto regulation, potentially setting a precedent for other jurisdictions. The enactment demands strategic adjustment from market participants, though full implications remain uncertain pending further regulatory guidance.