On July 18, 2025, President Trump signed the GENIUS Act into law—the first-ever federal stablecoin regulation designed to bring transparency, accountability, and legitimacy to digital dollars.Reuters Wikipedia
After the law takes effect—either 18 months later or 120 days after implementing regulations—only “permitted payment stablecoin issuers” may issue stablecoins in the U.S.
These issuers include:
Subsidiaries of insured banks or credit unions
Federally chartered non-bank institutions regulated by the OCC
State-chartered issuers under approved regimes for firms under $10 billion in market cap
Issuers must maintain 1:1 backing of stablecoins with U.S. dollars or equivalent low-risk assets (e.g., short-term Treasuries) and make monthly disclosures of reserve compositions.ReutersThe White HouseWorld Economic Forum
Stablecoin issuers fall under federal banking regulations, including AML, sanctions, and BSA standards.World Economic Forum
Industry regulators must finalize implementing rules within one year.Gibson DunnWilmerHale
Issuers cannot offer interest or yield on stablecoin holdings.Gibson DunnAAF
In insolvency, stablecoin holders are prioritized, and issuer reserves are protected from being treated as bankruptcy estate assets.Paul HastingsThe White House
Foreign issuers are permitted only if they register with the OCC, hold deposits in U.S. banks, and operate under a comparable regulatory regimeGibson Dunn
The Act encourages cross-border regulatory coordination for interoperability.World Economic Forum
The Act’s clarity has already spurred major institutions—like banks and retailers—to explore launching their own stablecoins.Reuters
Rulemaking is now the next critical step. Implementation could take years, and the final regulatory framework’s scope will determine the long-term impact.ReutersCovington & Burling
