One year after the GENIUS Act, stablecoin rules remain unfinished but 140-plus firms back Open USD, challenging Tether and Circle. The biggest unresolved policy fight – stablecoin rewards – could determine which tokens win.
The GENIUS Act marks its one-year anniversary today, July 18, 2026. The regulatory framework it set out to create remains unfinished.
President Donald Trump signed the landmark stablecoin legislation into law on July 18, 2025. A year later, federal regulators are still working to turn its mandates into detailed rules for stablecoin issuers.
The industry has not been waiting. Since last July, retail banks and card networks have rolled out stablecoin products at a rapid pace. SoFi launched its own stablecoin, SoFiUSD, in May. Visa is among the backers of Open USD, a new payment stablecoin backed by more than 140 companies, including Mastercard and Coinbase.
Important questions remain unanswered. The act bars stablecoin issuers from paying yield directly to holders. Policymakers are still debating whether exchanges and other third parties should be allowed to offer rewards. The outcome of that debate could shape which tokens win.
The GENIUS Act’s passage cleared the way for stablecoins to become part of the regulated US financial system. It requires issuers to back tokens one-to-one with cash or other liquid assets, and sets standards for risk management and financial-crime controls. The act left crucial details, including capital and liquidity requirements and rules for anti-money laundering and sanctions compliance, to federal regulators including the Treasury, Federal Reserve, FDIC and OCC.
The law takes effect on the earlier of two possible dates: either Jan. 18, 2027, or 120 days after regulators issue final implementing rules. In the meantime, key parts of the framework are still being written.
For years, Tether and Circle have dominated the stablecoin market through USDT and USDC, earning billions of dollars from the reserves backing those tokens. The GENIUS Act means competition. They must now defend market share against banks, payment networks, and fintechs launching reserve-backed stablecoins of their own.
Open USD is the clearest challenger. The stablecoin is backed by more than 140 companies, including Visa, Mastercard and Coinbase. Mastercard, which carries an Alpha Score of 54 out of 100, is part of the consortium. The group has access to established payment and distribution networks. The race is shifting from issuance to distribution. Stablecoins that penetrate most deeply into existing payment systems may be best positioned to win.
The source of the biggest unresolved policy fight is stablecoin rewards. Banks worry that yield-like products could pull deposits out of the traditional financial system. The crypto industry has resisted broader restrictions. The outcome could shape the market’s winners. If exchanges remain free to offer rewards, established stablecoins such as USDC and USDT could gain an early edge.
The law takes effect on the earlier of Jan. 18, 2027, or 120 days after regulators issue final rules.
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