The Genius Act 2025: US Sets New Standards for Stablecoins – What Global Investors Should Do

If you've ever wondered why stablecoins – those "stable" cryptocurrencies – are so crucial to the future of finance, this week provided the clearest proof yet. On July 17, 2025, the US Congress passed the Genius Act, and President Trump signed it into law the very next day, creating the first federal regulatory framework for stablecoins in history.

Why is America Leading the Charge?

To understand the significance of the Genius Act, consider the numbers: the global stablecoin market is currently valued at approximately $200 billion, with Tether (USDT) and USD Coin (USDC) commanding over 80% of the market share. Every day, hundreds of billions of dollars flow through stablecoin transactions.

While the EU has its MiCA regulatory framework and Singapore has the Payment Services Act, the US – with the USD's dominant position in the global financial system – is the true "rule-maker." The Genius Act doesn't just regulate the domestic market; it sets standards for the entire world.

Real Stories from Young Users

Imagine wanting to send money to friends in Singapore or Thailand without the high fees and multi-day wait times of traditional bank transfers. Stablecoins are the solution – cryptocurrencies "pegged" to the USD that let you transfer money quickly without worrying about price volatility like Bitcoin.

"I used to worry about the safety of stablecoins when buying goods from the US," shares Minh (24, working in Ho Chi Minh City). "But now with US law protection, I feel much more confident using USDC for international transactions."

But previously, the biggest question was: who guarantees that stablecoin issuers won't just "take the money and run"? Who oversees whether they actually hold enough USD reserves as promised?

The Genius Act is the answer.

Key Highlights of the Genius Act

This legislation establishes the first federal regulations for USD-pegged stablecoins and creates a tightly regulated pathway for private companies to issue "digital dollars."

What does this mean for you?

Greater Security: Stablecoin issuers must maintain 100% reserves in highly liquid assets (USD and US Treasury bonds), provide monthly reports, and submit to strict oversight.

Enhanced Transparency: Stablecoins are exempted from "securities" and "commodities" definitions under federal law while still complying with anti-money laundering and financial safety regulations.

User Protection: In case of company bankruptcy, stablecoin holders receive priority protection and redemption rights.