GENIUS Act Becomes Law, Establishing Federal Framework for Payment Stablecoins in the U.S.
The Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act became law on July 18, 2025, marking a significant turning point for digital assets in the United States. This legislation, which passed the Senate 68 to 30 and the House 308 to 122, provides the country's first federal framework for payment stablecoins and their issuers. While the Act's rules were initially expected to be implemented sooner, regulators missed the one-year rulemaking deadline, pushing the fallback effective date to January 18, 2027. The GENIUS Act is specifically designed to regulate fiat-backed payment stablecoins, requiring them to be issued by permitted institutions, backed 1:1 by qualifying reserves, and subject to monthly public attestation. This move aims to bring regulatory clarity to a segment of the digital asset market that has seen rapid growth and increasing interest from financial institutions. According to Matt Blumenfeld, Global & US Digital Assets Lead at PwC, this legislation is crucial for so...
