U.S. Treasury advances GENIUS Act to stablecoin regulations
The Trump-era law requires issuers to hold 1:1 reserves and publish monthly transparency reports as the stablecoin market nears $290B.
Key Takeaways
- The U.S. Treasury is advancing regulations under the GENIUS Act to create a stablecoin and digital asset regulatory framework.
- The Act requires stablecoin issuers to maintain 1:1 asset-backed reserves and provide monthly transparency reports.
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The U.S. Treasury today advanced regulations under the GENIUS Act, a law signed by President Donald Trump to establish a regulatory framework for stablecoins and digital assets.
The department posted a press release stating it is seeking public comment on the implementation of the GENIUS Act.
The GENIUS Act mandates that stablecoin issuers maintain 1:1 reserves backed by assets like U.S. Treasuries and provide monthly transparency reports, aiming to prevent illicit activities and enhance consumer protections.
Stablecoins have grown rapidly, with global market capitalization approaching $290.0 billion as of mid-2025, driven by their use in decentralized finance and cross-border payments.
The Act passed with bipartisan support in Congress in 2025 amid concerns over unregulated stablecoins potentially reaching trillions in value and impacting Treasury financing.
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