Approved on July 18, 2025, the GENIUS Act establishes the first federal regulatory framework for stablecoins, providing the legal clarity needed for mainstream adoption.
This landmark law boosts user protection by requiring stablecoins to be 100% backed by cash or short-term U.S. bonds, mandating transparent monthly disclosures, and prioritizing holders' rights in the event of bankruptcy. It strengthens the U.S. dollar’s global position by linking stablecoin reserves to U.S. assets, while also enhancing national security by requiring issuers to implement anti-money laundering systems and comply with legal orders to freeze or manage funds.