The Federal Reserve is closely monitoring the implications of the GENIUS Act, which introduces significant changes to stablecoin regulation in the US.
Regulatory Framework for Stablecoins Under GENIUS Act
The GENIUS Act, signed into law by President Trump on July 18, 2025, establishes strict regulatory measures that could significantly reshape the US stablecoin market. The Federal Reserve and other regulators are assessing how this law will impact stablecoin compliance and issuer eligibility.
Strict Reserve Requirements for Issuers
The law sets forth stringent reserve requirements, affecting all major USD-backed stablecoins. Key entities like the US Congress, the Treasury Department, and the OCC are focusing on issuer eligibility and framework development to ensure compliance.
Adaptation to International Standards
Previously, US stablecoins operated under state laws without unified federal guidance. The new law aims to enhance transparency in the American market, aligning with international standards that allow compliant tokens to dominate in a stabilized ecosystem.
The GENIUS Act has the potential to significantly influence the US stablecoin market by imposing strict requirements on issuers and creating a new framework for a safer and more transparent financial landscape.
