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- Sohrab Khawas
Sohrab Khawas
Sohrab is a passionate cryptocurrency news writer with over five years of experience covering the industry. He keeps a keen interest in blockchain technology and its potential to revolutionize finance. Whether he's trading or writing, Sohrab always keeps his finger on the pulse of the crypto world, using his expertise to deliver informative and engaging articles that educate and inspire. When he's not analyzing the markets, Sohrab indulges in his hobbies of graphic design, minimal design or listening to his favorite hip-hop tunes.
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Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.
- Jul 18, 2025 10:34 UTC
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New Stablecoin Law Passed, What’s Next for US Crypto Regulation?
GENIUS Act Passes U.S. House: The first federal stablecoin framework heads to Trump, setting strict rules for issuers and reserves.
Major Stablecoin Overhaul Coming: The law bans algorithmic stablecoins, enforces audits, and aims to prevent another Terra-like collapse.
The U.S. House has passed the GENIUS Act, short for Guiding and Establishing National Innovation for U.S. Stablecoins, marking a major turning point for crypto regulation. The bill now heads to President Trump’s desk and is expected to be signed into law this week.
The US Stablecoins Act, once signed, will introduce the country’s first federal framework specifically for stablecoins, potentially setting a model for international standards.
With this final step, there will be a lot of things that will happen in the space. Here’s a sneak peek and what it means to you.
Stricter Rules for Stablecoin Issuers
Under the GENIUS Act, all stablecoins must be fully backed 1:1 by liquid assets like U.S. dollars or Treasury securities. Issuers must publish monthly reserve reports and undergo regular audits by registered accounting firms. The Act also requires compliance with anti-money laundering and consumer protection rules, creating more transparency and reliability in the market.
Issuers can choose to operate under a federal license, regulated by bodies like the OCC or FDIC, or be supervised at the state level if they issue less than $10 billion. Foreign stablecoins will only be allowed in the U.S. if their country of origin meets regulatory standards similar to those in America.
A key provision of the bill is the ban on stablecoin issuers offering interest or yield to holders, a move aimed at reducing speculative risks and preventing another Terra-like collapse. Algorithmic stablecoins, which lack backing assets, will also be outlawed entirely.
Mixed Reactions from Lawmakers and Industry
The bill passed the House with a 308-122 vote, showing strong bipartisan support but also sparking criticism. Rep. Stephen F. Lynch argued that it gives big tech the power to issue their currencies and leaves the door open to potential misuse, including foreign influence and taxpayer bailouts.
On the flip side, Congressman Dusty Johnson took a much more optimistic stance, calling the crypto market structure bill a major milestone that “will launch a golden age of innovation and digital assets.
What’s Next?
If signed as expected, the GENIUS Act will take effect in 18 months or 120 days after federal agencies finalize rules. As regulators gear up for implementation, the stablecoin industry is bracing for one of its biggest overhauls yet.
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FAQs
The GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins) is a bill passed by the U.S. House of Representatives, heading to President Trump for signing, establishing a federal stablecoin framework.
Yes, the GENIUS Act specifically outlaws unbacked algorithmic stablecoins, aiming to prevent Terra-like collapses by requiring full asset backing.
The GENIUS Act is expected to take effect 18 months after enactment or 120 days after federal agencies finalize rules, whichever comes first.
Yes 
No 
