Stablecoins issued under the GENIUS Act are exempt from being classified as securities or commodities, shifting oversight away from the SEC and CFTC to banking regulators including the OCC and Treasury Department.
Just days after the Act was signed, Ethena Labs announced a partnership with Anchorage Digital Bank which is the only federally chartered crypto bank in the U.S, to reissue USDtb domestically under the GENIUS framework.
Anchorage will issue USDtb through its stablecoin issuance platform, making it the first U.S compliant stablecoin aligned with new regulatory mandates. This move signals a milestone in bringing stablecoin issuance fully under federal oversight.
With regulatory clarity now in place, crypto-friendly institutions and companies like Coinbase, Circle, Meta, Walmart, and Visa are positioning themselves to adopt these stablecoins for payments and international commerce.
Experts predict that the mainstream adoption could extend stablecoin utility across remittance corridors and checkouts and at the same time strengthen the demand for U.S. Treasurys, which back issued stablecoins.
The GENIUS Act prohibits yield-bearing features for holders of these stablecoins, meaning services like staking are disallowed. This may change in user demand toward DeFi platforms for yield opportunities, potentially triggering what analysts describe as “a DeFi summer on steroids”.
Some critics warn that funneling large sums into U.S. Treasurys could create unintended systemic risk. A Financial Times opinion piece draws parallels to past regulatory missteps and cautions that sudden stablecoin Treasury outflows might destabilize markets during stress scenarios.
The GENIUS Act inspired an immediate crypto rally. Bitcoin went up to over $123 000 while Ethereum, Solana, and others posted strong gains, lifting total global crypto market cap past $4 trillion temporarily.
Coinbase stock soared as investors bet it would gain a regulatory edge, while traditional payments firms like Visa and Mastercard saw muted movement as they embraced stablecoins as complementary, rather than competitive, tools.
At least six providers, including major names like Ripple, Circle, and Fidelity Digital Assets, are actively pursuing U.S. bank charters to meet GENIUS Act compliance and offer regulated stablecoin services.
These developments reflect a broader trend: major crypto firms aligning their infrastructure with traditional finance rules to win institutional trust and operate at scale.
The GENIUS Act embeds several consumer safeguards. Issuers must maintain segregated reserves, undergo monthly attestations, and ensure stablecoin holders gain priority in case of issuer insolvency. Annual audits are required for issuers over $50 billion in market cap.
Additionally, the act brings stablecoin issuers under the Bank Secrecy Act, compelling them to enforce AML and sanctions compliance protocols aligned with traditional banks.
The GENIUS Act positions the U.S. dollar for a digital leap. By legitimizing tokenized dollars on public blockchains, the U.S. enhances its soft power in global finance. Experts believe this will pave the way for tokenized Treasurys, programmable payments, and AI-native financial infrastructure.
This digital push echoes other national priorities. For example, Trump’s broader tech agenda detailed in his AI Plan targeting China reveals a strategic push to integrate financial innovation and AI into a unified digital economic doctrine.
The GENIUS Act is transformative in stabilizing the adoption of stablecoins, converting an unsuspecting speculative class of crypto assets into utility with regulation. With USDtb acting as the first compliant stablecoin in the U.S., institutions now have a clear bridge into compliant digital dollars.
Regulatory clarity provides tremendous legal uncertain, however experts suggest that investors should remain cognizant of liquidity and systemic risk related to asset backing and associated Treasury-market exposure.
As the global regulatory framework develops for the next phase of fintech innovation, tokenized currency under regulation may impact cross border transfers, real-time payments, and corporate finance operations.
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