US Genius act stablecoin regulatory landscape and market impact

Background of the legislation

On July 18, 2025, the U.S. President signed the famous Genius Stablecoin Bill, which is the first significant regulation in the field of digital asset regulation in the United States. The bill was initially introduced on February 4 by Senator Hagerty and others, and after several rounds of revisions and consideration by both houses, it was finally passed, aiming to provide unified and strict compliance requirements for the stablecoin market to ensure healthy market development.

Core bill provisions

The bill clearly states that stablecoins can only be issued by licensed domestic issuers or foreign entities under equivalent regulation, and a 1:1 high liquidity asset reserve must be established. Issuers are required to regularly publish audit reports, disclose asset status and operational details, and ensure that holders have priority liquidation rights in the event of bankruptcy.

Impact on the issuer

The new regulations have raised the regulatory thresholds, prompting market consolidation and the emergence of more compliant enterprises. However, as the laws become clearer, compliant institutions can operate steadily, using low-risk assets such as U.S. Treasury bonds for reserves, thereby promoting the development of innovative products.

Protection for users and investors

The Genius Act enhances the trust foundation of stablecoins and reduces risks arising from asset opacity. Regular disclosures and audits improve investment transparency, which helps build consumer confidence and prevent financial fraud and asset loss.

Industry Future Outlook

With the implementation of the Genius Act, the U.S. stablecoin market will move towards standardization and scaling development. Challenges include the need to balance strict regulation with innovation efficiency, as well as issues such as cross-border regulatory coordination and technological upgrades. Overall, the Act injects new momentum into the stablecoin industry.