The United States just passed its first comprehensive federal law governing stablecoins, a move designed to turn a corner of the crypto market into a weapon for dollar supremacy. The GENIUS Act, signed into law on July 18, 2025, essentially says: if you’re going to issue digital dollars, you’re going to do it on America’s terms.
What the GENIUS Act actually does
The full name is the Guiding and Establishing National Innovation for U.S. Stablecoins Act. It’s a rulebook for companies that want to issue tokens pegged to the dollar.
Every stablecoin must be backed 1:1 by high-quality US dollar assets. That means cash, bank deposits, and short-term Treasuries. No fractional reserve games, no exotic collateral.
Issuers are required to submit monthly disclosures and undergo regular audits of their reserves.
