US GENIUS Stablecoin Act Moves Toward 2026 Regulatory Implementation

Signed by President Trump on July 18, 2025, the bipartisan GENIUS Act directs federal regulators to establish and enforce stablecoin rules by mid-2026.

91d ago

Summary

President Donald Trump signed the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act into law on July 18, 2025, marking the culmination of a bipartisan legislative process initiated by Sen. Bill Hagerty in February. The Act sets requirements for stablecoin issuers operating in the U.S., including full USD or high-liquidity asset backing and annual audits for issuers with over $50 billion in market capitalization. Federal bank and financial regulators are tasked with creating detailed enforcement guidelines by July 18, 2026. Hagerty emphasized the bill’s potential to reduce counterparty risk, lower transaction costs, improve efficiency, and reinforce U.S. dollar dominance globally.

Terms & Concepts

Stablecoin: A cryptocurrency designed to maintain a stable value by being pegged to a reserve asset, such as the US dollar.
High-liquidity asset: An asset that can be quickly converted into cash with minimal loss of value, often used to ensure quick access to funds.
Audit: An independent examination of financial records and operations to ensure accuracy and compliance with regulations.