The Breakdown Inside the Genius Act: Trump Signs Landmark Stablecoin Bill into Law
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Jul 22, 2025 The newly signed Genius Act marks a pivotal moment for U.S. crypto regulation, setting clear rules for stablecoins. Key elements include reserve requirements and a prohibition on Big Tech stablecoins. Insights from executives shed light on how this impacts market dynamics and compliance. The discussion touches on how traditional finance is blending with crypto, especially with retail investors entering the scene. Additionally, it explores the potential effects of crypto IPOs on competition and market sentiment.
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Genius Act's Stablecoin Impact
- The Genius Act makes stablecoins formally regulated in the US, favoring crypto-native issuers Circle and Tether.
- Tether aims to be the Federal Reserve for the rest of the world by enabling dollar-like instruments globally.
Executive Attendance at Signing
- Crypto executives like Paolo Arduino of Tether and Jeremy Allaire of Circle attended the Genius Act signing at the White House.
- This event marked a bipartisan milestone after years of effort to pass significant digital asset legislation.
Reserve Rules and Interest Ban
- Stablecoin reserves can include reverse repo transactions, not just US treasuries, possibly reducing treasury demand.
- The Act bans paying interest on stablecoins, potentially driving more people to seek DeFi yields.