U.S. Passes Historic Stablecoin Law: GENIUS Act Sets Federal Framework as Visa & SoFi Move into Digital Dollar Settlement
Stablecoin Law : The United States has entered a new era of stablecoin regulation and digital currency oversight, marked by the passage of the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act) — the nation’s first comprehensive federal regulatory framework for stablecoins and a major milestone for the digital asset industry.
Signed into law on July 18, 2025, by President Donald Trump, the GENIUS Act creates standards for payment stablecoins — cryptocurrencies pegged to the value of a fiat currency like the U.S. dollar — and governs how they are issued, backed and supervised at federal and state levels.
Under the new law, stablecoins must be backed 1:1 with federally approved reserves, including U.S. dollars or highly liquid assets such as short-term Treasury bills, ensuring that each coin can be redeemed reliably at face value. Issuers are required to disclose detailed reserve composition and adhere to anti-money-laundering (AML) and consumer protection standards, bridging the regulatory gap between digital assets and traditional financial systems.
The Office of the Comptroller of the Currency (OCC) will supervise federally chartered stablecoin issuers, while a dual federal-state regime allows certain smaller issuers to operate under qualified state regulatory systems, provided they comply with federal standards.
Industry leaders have welcomed the move as essential for financial innovation, signaling regulatory certainty and strengthening the role of U.S. dollar-backed stablecoins in mainstream finance. Financial giants are already acting on the momentum: Visa’s pilot program now uses USDC stablecoin for real-time bank settlement, promising faster payments and 24/7 clearing, while SoFi Technologies has launched its own dollar-backed stablecoin, SoFiUSD, designed for use in trading, cross-border payments and retail transactions.
Federal Reserve officials — including Fed Governor Christopher Waller — have voiced support for regulated stablecoins, noting that clear rules may strengthen the U.S. dollar’s global role as a reserve currency and expand efficient payment systems.
However, regulators and consumer advocates maintain a cautious stance. Some critics warn that stablecoin growth must be managed to avoid systemic risks, and ongoing rule-making by agencies such as the Federal Deposit Insurance Corporation (FDIC) and Commodity Futures Trading Commission (CFTC) will determine how the law is implemented in practice, including capital, liquidity and risk management standards.
As stablecoin adoption rises — with payment volumes up sharply in 2025 — U.S. crypto law appears to be catching up to market demand, offering a blueprint for balanced innovation, oversight and consumer safeguards in the rapidly evolving digital economy.
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