On July 18, 2025, U.S. President Donald Trump signed the GENIUS Act, introducing strict rules for stablecoins and reshaping the cryptocurrency market.
Introduction to GENIUS Act
The signing of the GENIUS Act at the White House coincided with a meeting of key industry leaders and congressional members. This act marks a significant step in U.S. cryptocurrency regulation, mandating 100% reserve backing for stablecoins.
Impact of the Law on the Stablecoin Market
The law will affect companies like Tether and Gemini, requiring them to disclose reserve information monthly. These measures aim to increase confidence among traditional financial institutions in their dealings with digital assets, potentially leading to significant market shifts.
Global Trends in Cryptocurrency Regulation
Regulatory actions from other nations, such as the EU's MiCA, suggest that such measures might increase compliance costs and market adjustments. Historical practices indicate that regulatory compliance could lead to issuer consolidation and enhanced stability for stablecoins.
The signing of the GENIUS Act represents a critical move in shaping cryptocurrency regulation in the U.S. and may have significant implications for the global landscape of stablecoins.
