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GENIUS Act Turns One as Stablecoin Rule Details Still Elusive
One year after the GENIUS Act became law, stablecoin reserve rules are set while anti-money laundering, capital, and liquidity requirements remain in draft. Circle backs the law; the CLARITY Act faces Senate hurdles.
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The GENIUS Act reached its first anniversary on July 18, a year after President Donald Trump signed the stablecoin legislation into law. The law has given banks and payment providers confidence to invest in blockchain-based payment systems. The full set of rules is still under development.
The act requires payment stablecoins to hold a one-to-one reserve of cash or highly liquid assets. It also sets broad standards for reserve management and financial crime prevention. Several critical implementation rules remain unfinished. Federal regulators at the Treasury Department, the Federal Reserve, the FDIC, and the OCC are still drafting detailed requirements for customer identification, AML, sanctions compliance, liquidity, and capital. Public consultation periods are underway before the final rules are adopted.
Despite the incomplete regulatory picture, the industry has moved quickly. Financial institutions and payment companies have expanded stablecoin initiatives, encouraged by the legal clarity the GENIUS Act provides. The legislation has accelerated investment in blockchain infrastructure across the financial sector.