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The United States now has its first federal regulatory framework for dollar-backed stablecoins.
The GENIUS Act, signed into law on July 18, 2025, answers four foundational questions the market had been left to resolve on its own: who is allowed to issue payment stablecoins, what those tokens must be backed by, how holders can redeem them, and which regulators are responsible for oversight.
What the Law Sets Out to Do The GENIUS Act targets payment stablecoins — dollar-pegged tokens designed for use as a medium of exchange.
Its framework rests on four pillars, each addressing a distinct point where the absence of a federal standard had left the market operating on issuer discretion or informal arrangements.
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