Overview

• The GENIUS Act took effect on July 18 requiring stablecoins to be fully backed by U.S. dollars or high-grade reserves and to undergo monthly audits.
• Major financial and tech firms such as J.P. Morgan Chase, Amazon, Walmart, Mastercard and Visa are planning stablecoin offerings under the new law.
• Critics including Senator Elizabeth Warren warn the law could trigger a new financial crisis by magnifying market volatility.
• The Act’s strategic aim to boost demand for U.S. dollars and Treasury bonds aligns with forecasts of market growth from about $260 billion to $2 trillion by 2028.
• Argentina’s CNV has launched a regulatory sandbox for asset tokenization while the UIF enforces VASP registration and AML/KYC rules under Law 27.739.