U.S. Stablecoin and Custody Legislation Marks Pivotal Shift for Crypto Markets
The GENIUS Act establishes the first federal licensing framework for stablecoin issuers, demanding strict reserve requirements and operational transparency. This legislation, enacted in July, signals Washington’s commitment to legitimizing dollar-pegged cryptocurrencies while mitigating systemic risks.
Concurrently, the CLARITY Act delineates regulatory boundaries between the SEC and CFTC, empowering the latter with expanded oversight of digital commodity markets. The MOVE resolves longstanding jurisdictional ambiguities that stifled institutional participation.
Most consequentially, the SEC’s reversal of SAB 121 eliminates prohibitive capital requirements for banks offering crypto custody services. Depositories like BNY Mellon and State Street may now enter the space without punitive balance sheet constraints—a watershed for institutional adoption.
