Understanding the GENIUS Act: The US's New Stablecoin Regulation Landscape

The US has taken a significant step in regulating the growing stablecoin market through the enactment of the GENIUS Act (Guaranteeing Essential National Infrastructure in US-Stablecoins), signed into law by President Donald Trump on July 18, 2025. This legislation marks the first comprehensive framework in the United States aimed specifically at stablecoins.

Key provisions of the GENIUS Act require that stablecoin issuers be insured depository institutions approved by the Federal Reserve, ensuring a robust banking oversight. Additionally, issuers must maintain 1:1 reserves backing each issued stablecoin, with allowances for holding reserves in low-risk assets. The Act also mandates full compliance with the Bank Secrecy Act, emphasizing anti-money laundering measures and strong consumer protection policies.

With stablecoin use surging by 28% over the past year and exceeding the combined transaction volume of giants like Visa and Mastercard, this regulation is timely. It places the US alongside the European Union, which has introduced MiCA, and Hong Kong, known for its Stablecoin Ordinance, as leaders in stablecoin regulatory space.

Despite this progress, challenges remain. There is a growing call for international cooperation to establish global regulatory standards that will protect consumers while fostering innovation. The GENIUS Act is a foundational step, but ongoing collaboration is crucial.

For crypto enthusiasts and investors looking to navigate this evolving environment, platforms like Bitlet.app offer valuable services. Bitlet.app provides a Crypto Installment service, allowing users to buy cryptocurrencies now and pay monthly, making crypto investment more accessible amidst regulatory changes.

Stay informed and ahead in the dynamic crypto landscape by leveraging regulatory insights and innovative platforms like Bitlet.app.