US Enacts First Federal Stablecoin Framework
US Enacts First Federal Stablecoin Framework
🏛️ Stablecoin rules finally...
The GENIUS Act became law on July 18, 2025, establishing the first comprehensive federal framework for USD stablecoins in the United States.
Key Requirements:
- Only licensed issuers can serve US persons (banks, OCC-approved nonbanks, or qualified state issuers)
- 1:1 reserve backing with high-quality liquid assets required
- Par redemption within defined timeframes
- Monthly disclosures and custody standards
Regulatory Structure:
- Treasury coordinates policy and rulemaking
- OCC supervises federally licensed nonbank issuers
- Federal Reserve maintains systemic oversight
Legal Clarity: Permitted stablecoins are not securities under federal law or commodities under CEA. Issuers must comply with Bank Secrecy Act, including KYC and sanctions requirements.
Timeline: Act takes effect January 18, 2027, or 120 days after final rules are published. Treasury and OCC comment periods are currently open.
Foreign Issuers: Comparable-regime foreign issuers may register with OCC, subject to Treasury's ongoing comparability assessments.
Stablecoin issuers should begin mapping their regulatory path and preparing compliance frameworks now.
1/12 🧵 The United States has enacted the Guiding and Establishing National Innovation for U.S. Stablecoins Act(“GENIUS Act”), the first comprehensive federal framework for USD stablecoins (as of Aug 26, 2025).
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