On July 18, 2025, President Donald Trump signed the GENIUS Act, marking a pivotal moment in the regulatory landscape for stablecoins in the United States.
Signed GENIUS Act
The GENIUS Act, which stands for 'Guiding and Establishing National Innovation for U.S. Stablecoins', was passed with bipartisan support. It introduces the first federal regulatory framework for stablecoins that mandates they be fully backed by liquid reserves like U.S. dollars or short-term Treasuries. Issuers are required to undergo monthly public disclosures and annual audits if their market capitalization exceeds $50 billion.
Consumer Benefits and New Regulations
The Act strengthens consumer protections by providing redemption rights and prioritizing stablecoin holders in bankruptcy situations. It also introduces strict prohibitions on the use of terms like 'FDIC-insured' to prevent misleading practices. A dual oversight model will see federal agencies regulate large issuers, while state regulators oversee smaller ones.
Impact of the Act on Blockchain Projects
Following the announcement of the Act, there was a notable surge in interest in blockchain projects. For instance, shares of Circle Internet Financial, a major stablecoin issuer, rose by over 14%. The Graphite Network, launched in January 2025, is strategically positioned in the post-GENIUS landscape, as its architecture aligns with the new regulatory requirements.
The GENIUS Act represents a significant advancement in the regulation of digital assets in the U.S., establishing clear rules for stablecoins and opening new opportunities for compliant projects.
