The US is embarking on a new era in stablecoin regulation with the passage of the GENIUS Act, which brings clarity to digital dollars and programmable money.
What the GENIUS Act Covers
The GENIUS Act was passed with bipartisan support, creating a dual regulatory regime with federal oversight and regulated state pathways. It requires full reserve backing for stablecoins, strict segregation of reserves, monthly public audits, and prohibits interest-bearing features.
Shift to Institutional Confidence
The GENIUS Act establishes institutional confidence, prompting banks and fintech companies to quickly integrate stablecoins into risk-managed frameworks. This has led firms like Visa to view the law as a potential step toward global remittances.
Reinforcing Dollar Supremacy and Tokenization Infrastructure
The law requires reserves to be held in US dollar assets and Treasuries, which could lead to significant investment in US debt markets. Experts believe this could serve as a foundation for digital dollar adoption, particularly in emerging markets.
The passage of the GENIUS Act marks a new chapter for stablecoins in the US, providing legal clarity and new opportunities for institutional participation in digital payments and tokenized assets.
