New Stablecoin Law Passed, What’s Next for US Crypto Regulation?

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.

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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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