GENIUS Act: Transforming US Stablecoin Regulations 🚀
On May 29, 2025, Foresight Ventures offered a detailed analysis of the newly enacted U.S. GENIUS Act, which aims to transform stablecoin regulations. The act lowers operational barriers, enhances compliance standards, and reinforces the U.S. dollar in the digital economy, with substantial effects on startups and fintech firms. It introduces a dual-licensing system that allows for a streamlined, nationwide operation for stablecoin issuers with a single state license recognized federally. Additionally, stablecoin reserves must be held as bankruptcy-remote trust assets to protect holders in case of issuer insolvency. The act ensures stability with a 1:1 backing by U.S. dollars and liquid assets. Unique provisions prohibit interest payments to end-users but allow reserve interest use for business growth. Zac Tsui of Foresight Ventures emphasizes that this act supports secure and scalable financial solutions. The full report is available at Foresight Ventures' website.
FAQ
❓ What changes does the GENIUS Act bring to stablecoin regulation?
The GENIUS Act simplifies licensing, mandates secure reserves, and promotes U.S. dollar-backed stablecoins.
❓ How does the GENIUS Act benefit startups?
It creates a more favorable regulatory environment, reducing barriers and supporting innovation in fintech.