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4d ago

Trump Signs GENIUS Act, Sets Federal Rules for Dollar-Backed Stablecoins

The legislation tasks federal agencies with drafting detailed implementing rules within six months.

Representations of cryptocurrencies are seen in front of displayed decreasing stock graph in this illustration taken November 10, 2022. REUTERS/Dado Ruvic/Illustration/File photo
President Donald Trump, surrounded by lawmakers, signs the GENIUS Act into law during a ceremony in the East Room of the White House July 18, 2025, in Washington, D.C. (Photo by Anna Moneymaker/Getty Images)
U.S. President Donald Trump during a signing ceremony for the GENIUS Act in the East Room of the White House in Washington, DC, US, on July 18, 2025.
Stablecoins

Overview

  • Under the GENIUS Act, stablecoin issuers must fully back tokens with low-risk liquid assets, submit to monthly independent audits, enforce anti-money-laundering controls and forgo any interest payments.
  • Oversight of dollar-pegged stablecoins shifts to federal regulators, with the OCC supervising nonbank issuers and the Federal Reserve, FDIC and NCUA overseeing chartered institutions and empowered to freeze assets.
  • Regulators have a six-month deadline to issue implementing rules, prompting issuers to seek OCC charters or Federal Reserve approval ahead of the compliance timeline.
  • Crypto-linked stocks and token prices rallied on news of the law, signaling market optimism that the act grants stablecoins broader legitimacy in mainstream finance.
  • Major banks including JPMorgan Chase, Bank of America and Citigroup are now exploring or developing compliant stablecoin products in response to the new regulatory clarity.