BREAKING: Trump’s GENIUS Act Unleashes First-Ever US Stablecoin Regulations—Crypto Markets Brace for Impact

Washington just rewrote the rules of digital finance—and Wall Street didn't see it coming.

The New Playbook

The GENIUS Act creates America's first legal framework for stablecoins, finally giving regulators teeth after years of 'wild west' crypto chaos. No more regulatory gray zones—issuers now face strict reserve requirements and disclosure mandates.

Why It Matters

Stablecoins aren't just crypto toys anymore. With $150B+ in circulation, they've become shadow banking infrastructure. This law forces them into daylight—whether Tether likes it or not.

The Fallout

Crypto exchanges are scrambling. Traders are hedging. And every DC lobbyist just got 20% richer. Meanwhile, traditional banks are fuming—their slow-mo stablecoin projects just got lapped by DeFi.

One thing's certain: the era of 'move fast and break things' is over. Now it's 'comply or die.' (But let's be real—the compliance lawyers always win.)

Stablecoin framework

The GENIUS Act creates a federal framework for issuing and overseeing payment stablecoins.

It assigns the Federal Reserve to license and supervise national-level, insured depository institutions, while permitting eligible, state-chartered firms to mint dollar-pegged tokens if they meet equivalent standards on reserves, disclosures, redemptions, and risk controls.

Issuers must back every token with high-quality liquid assets, such as cash, Treasury bills, or other short-dated government securities, that match their outstanding liabilities and provide regular attestation reports.

The law also directs bank regulators to set examination schedules, guarantees consumers the right to redeem at face value within specific time frames, and requires that reserve assets remain segregated unless customers give explicit consent for rehypothecation.

Last stretch

The House cleared the GENIUS Act 307‑122 on July 17, one day after adopting a 215‑211 motion to reconsider a procedural package that combined the GENIUS Act with the CLARITY Act and the Anti‑CBDC Surveillance Act.

Lawmakers first bundled the three measures on July 16 to expedite floor action, but that resolution did not constitute enrollable text. Committee staff then prepared the GENIUS language as a stand‑alone bill that both chambers could pass in identical form. 

The Senate approved the consolidated version late on July 17, completing the bicameral process required for enrollment and presentation to the WHITE House.