On July 18, 2025, the U.S. Congress approved the GENIUS Act, a significant step in stablecoin regulation, awaiting President Trump's signature.
Passage of the GENIUS Act
The GENIUS Act was initiated by Senator Bill Hagerty and received support from Senators Tim Scott and Cynthia Lummis. The legislation aims to create a standardized regulatory framework for the stablecoin market. Once signed by the president, issuers will be required to adhere to new reserve, audit, and transparency standards.
Market Impact of Stablecoins
One expected outcome of the GENIUS Act is to improve the stability of the stablecoin market in the U.S., given the overall market size of $250 billion. The new regulatory act will introduce comprehensive rules for stablecoin management, which may lead to increased liquidity and changes in how projects operate in this area.
Outlook and Reactions to the Legislation
Reactions from prominent figures in the financial sector highlight the importance of the newly passed legislation. SEC Chairman Paul S. Atkins expressed congratulations on the passage, emphasizing that it is a step towards broader acceptance of the cryptocurrency industry. It is also projected that the Act will increase institutional investors' interest in regulated digital assets.
The GENIUS Act represents a significant advancement in stablecoin regulation, and its passage could redefine the rules for digital assets in the U.S.
