The White House released a fact sheet confirming that President Donald J. Trump signed the GENIUS Act into law, creating the first federal regulatory system for stablecoins. The legislation sets nationwide requirements intended to support stablecoin stability and consumer protection, while also subjecting issuers to anti-money laundering and sanctions obligations. The GENIUS Act requires stablecoin issuers to maintain 100% reserve backing in liquid assets such as U.S. dollars or short-term Treasuries and to publish monthly disclosures on reserve composition. It also imposes marketing restrictions, including prohibitions on claims that stablecoins are backed by the U.S. government, federally insured, or legal tender, and seeks to align State and Federal stablecoin frameworks. In issuer insolvency, the Act prioritizes stablecoin holders’ claims over other creditors, explicitly brings stablecoin issuers under the Bank Secrecy Act, and requires issuers to have the technical capability to seize, freeze, or burn payment stablecoins when legally required and to comply with lawful orders.
The White House 2025-07-18
The White House signs GENIUS Act into law establishing a federal regulatory framework for stablecoins
President Donald J. Trump signed the GENIUS Act, creating the first federal regulatory framework for stablecoins. The Act mandates 100% reserve backing in liquid assets, monthly reserve disclosures, and marketing restrictions, aligning State and Federal frameworks. It prioritizes stablecoin holders in insolvency and subjects issuers to the Bank Secrecy Act, requiring technical capabilities to seize, freeze, or burn stablecoins as legally necessary.