The GENIUS Act: US Stablecoin Regulation and Global Impact

The "Guiding and Establishing National Innovation for U.S. Stablecoins" (GENIUS) Act, signed into law by President Donald J. Trump on July 18, 2025, represents a landmark piece of federal legislation establishing the first comprehensive regulatory framework for payment stablecoins in the United States. This Act, celebrated by proponents as a strategic move to solidify American dominance in global finance and cryptocurrency technology, aims to provide regulatory clarity, foster innovation, enhance consumer protection, and strengthen the U.S. dollar's status as an international reserve currency. Despite broad bipartisan support, the GENIUS Act has drawn significant criticism from consumer advocates and anti-corruption groups who highlight perceived loopholes, risks to financial stability, and concerns about facilitating illicit activities. Its passage positions the U.S. within a global landscape of evolving crypto regulations, setting a distinct course from approaches taken by the EU and UK, particularly concerning central bank digital currencies (CBDCs) and monetary sovereignty.