- US Treasury solicits stablecoin regulation feedback following GENIUS Act passage.
- Stablecoin issuers must maintain asset reserves in U.S. dollars.
- Federal Reserve approval required for stablecoin operations.
The US Treasury is requesting public feedback to implement the GENIUS Act aimed at regulating stablecoin issuers, following its signing by President Donald J. Trump on July 18, 2025.
This initiative seeks to bolster US financial stability by enforcing reserve requirements on stablecoins, potentially increasing demand for US debt and impacting the cryptocurrency market structure.
The US Treasury is actively seeking feedback to implement the GENIUS Act, focusing on stablecoin regulations. The Act requires stablecoin issuers to hold assets in U.S. dollars and was signed by President Donald J. Trump.
The Act, authored by Congress, mandates stablecoin issuers to obtain Federal Reserve approval and comply with banking standards. The US Treasury now develops detailed rules. Stablecoin industry leaders have previously supported federal guidelines.
President Donald J. Trump, President of the United States, “The GENIUS Act will generate increased demand for U.S. debt and cement the dollar’s status as the global reserve currency by requiring stablecoin issuers to back their assets with Treasuries and U.S. dollars.” – White House Fact Sheet
The Act is anticipated to increase demand for US Treasury assets as stablecoin issuers adjust reserves. This may impact stablecoin liquidity and market stability. USD-backed stablecoins like USDC and USDT will be particularly affected.
Financial shifts include increased T-bill demand due to reserve requirements, impacting broader economic dynamics. Policy outcomes will influence stablecoin operations and may alter digital asset trading behaviors.
The feedback request aligns with a broader government effort to regulate cryptocurrencies strategically. It reflects a desire for stable, asset-backed stablecoins to reinforce dollar sovereignty.
Potential outcomes include aligning stablecoin frameworks with existing laws, impacting the financial landscape. Historical trends show an evolving regulatory environment, affecting financial systems and the crypto market broadly.
