In a historic step for the U.S. digital assets industry, Congress has just approved the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, representing the nation’s first broad legislation aimed at crypto-specific regulation.
The bipartisan bill, welcomed by lawmakers and tech executives alike, creates an official legal construct for stablecoins issued in the United States, responding to long-awaited calls from regulators, investors, and industry players for greater clarity.
President Donald Trump will reportedly sign the bill into law sometime later this Friday, said top White House officials quoted by Politico.
Two-Tier Oversight for Stablecoin Issuers
The GENIUS Act establishes a two-tiered supervisory framework for stablecoin issuers depending on their institutional character. In the bill, the Federal Reserve will supervise stablecoin-issuing banks, while the Office of the Comptroller of the Currency (OCC) will supervise non-bank institutions that have more than $10 billion in stablecoin assets. For lesser issuers, state regulators can maintain some authority if federal waivers are granted.
Additionally, the law requires all stablecoins to be fully backed by reserves such as U.S. dollars, Treasury bonds, or demand deposits. Issuers must conduct regular audits, disclose reserve holdings, and ensure transparency to avoid misrepresentation or misuse. Stablecoin-based payment systems will also be recognized as a distinct category within the U.S. financial ecosystem.
Industry Applauds Clear Guidelines
The bill has been welcomed warmly by crypto supporters and tech firms, who see it as providing much-needed regulatory clarity. “This bill will enable American businesses and consumers and allow them to make the most of the next generation of financial innovation,” Democratic co-sponsor Senator Kirsten Gillibrand said in a Senate speech last week.
Aptos Labs CEO Avery Ching repeated this enthusiasm, saying in a company statement that the GENIUS Act is a ‘turning point for blockchain-backed value systems’ and one that will ‘increase access to the financial system and unlock new economic opportunities’. His comments reflect a larger change in Silicon Valley’s mindset seeing regulation not as a stumbling block but as a driver for wider adoption.
Huge Crypto Companies Already Complying with the Law
Big players within the crypto ecosystem have already begun adapting to the requirement of the legislation. Circle, the issuer of the USDC stablecoin, had already filed an application with the OCC to acquire a federally regulated trust bank charter.
With the GENIUS Act now signed into law, the company leadership feels that the new system will speed their efforts toward becoming closer integrated with the legacy U.S. banking system.
