Overview

• The GENIUS Act, signed July 18, 2025, creates a federal licensing system for dollar-pegged stablecoins with expanded regulator authority.
• Issuers must fully back tokens with low-risk assets such as U.S. Treasuries, submit monthly audit attestations, enforce anti-money laundering controls, empower legal asset freezes.
• Shares of crypto-linked firms and prices of Ether and Bitcoin rallied in early trading as investors welcomed the regulatory clarity.
• Reserve mandates are expected to boost demand for U.S. dollars and short-term government debt by requiring stablecoin reserves to consist of cash or Treasury bills.
• Major issuers like Tether and Circle, which together represent over 80% of stablecoin circulation, are reconfiguring reserves and compliance processes ahead of implementation.