#LeyGenius
The GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins Act) is the first comprehensive federal legislation in the United States specifically designed to regulate stablecoins.
Enacted by President Donald Trump on July 18, 2025, the law has entered a critical phase of implementation during this 2026, establishing a framework that changes the rules of the game for the entire crypto ecosystem.
Here are the key points to understand its impact:
🛠️ Pillars of the GENIUS Act
Mandatory 1:1 Backing: Issuers must maintain total reserves in liquid and safe assets (cash or U.S. Treasury bonds). The rehypothecation of these assets is prohibited.
Goodbye to Interest: Stablecoins regulated under this law cannot pay interest or direct returns to users. The goal is for them to function as a means of payment, not as bank deposits.
Jurisdictional Clarity: Defines that payment stablecoins are not securities or commodities, thus falling outside the scope of the SEC and CFTC, and coming under the supervision of banking regulators (such as the Fed and the OCC).
Dual Oversight: Allows issuers with less than $10 billion in capitalization to be regulated at the state level, while larger issuers require federal licenses.
📉 Impact in 2026
So far this year, the law has forced major players (like Tether and Circle) to undergo monthly audits certified by their executives (CEO/CFO), under the threat of imprisonment in case of falsehood. This has drastically reduced the risk of "de-pegging" from the dollar, but has also centralized much of the liquidity in entities that comply with U.S. regulations.
The GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins Act) is the first comprehensive federal legislation in the United States specifically designed to regulate stablecoins.
Enacted by President Donald Trump on July 18, 2025, the law has entered a critical phase of implementation during this 2026, establishing a framework that changes the rules of the game for the entire crypto ecosystem.
Here are the key points to understand its impact:
🛠️ Pillars of the GENIUS Act
Mandatory 1:1 Backing: Issuers must maintain total reserves in liquid and safe assets (cash or U.S. Treasury bonds). The rehypothecation of these assets is prohibited.
Goodbye to Interest: Stablecoins regulated under this law cannot pay interest or direct returns to users. The goal is for them to function as a means of payment, not as bank deposits.
Jurisdictional Clarity: Defines that payment stablecoins are not securities or commodities, thus falling outside the scope of the SEC and CFTC, and coming under the supervision of banking regulators (such as the Fed and the OCC).
Dual Oversight: Allows issuers with less than $10 billion in capitalization to be regulated at the state level, while larger issuers require federal licenses.
📉 Impact in 2026
So far this year, the law has forced major players (like Tether and Circle) to undergo monthly audits certified by their executives (CEO/CFO), under the threat of imprisonment in case of falsehood. This has drastically reduced the risk of "de-pegging" from the dollar, but has also centralized much of the liquidity in entities that comply with U.S. regulations.