Cryptocurrency: The United States Adopts the GENIUS Act

By Jean Venel Casséus The United States has just reached a historic turning point in cryptocurrency regulation. On June 17, 2025, the Senate adopted the GENIUS Act (Guaranteed and Uniform Safe Transactions and Innovations in Stablecoins Act), and the House of Representatives validated the text on July 16. This legislative advancement is part of a week already dubbed “Crypto Week” by observers. This bill directly concerns stablecoins, these crypto-assets backed by a currency like the dollar. Known examples include USDT (Tether), USDC (USD Coin), and DAI. Their stable value makes them more attractive for payments and fast transfers, unlike volatile cryptocurrencies such as Bitcoin or Ethereum. With the GENIUS Act, the federal government is regulating this booming market for the first time. Stablecoin issuers will have to guarantee full backing of their reserves with safe assets, such as dollars or Treasury bonds. Monthly audits will be mandatory, and registration with federal authorities is now required. The law also prohibits so-called “algorithmic” stablecoins, such as TerraUSD or Ampleforth, deemed too unstable. It also specifies that the Federal Reserve cannot launch its own digital currency without Congressional authorization. One of the notable elements of the text is the opening of the market to non-banking companies. Players like Amazon or Walmart will be able to launch their own stablecoins, provided they comply with the rules. This provision could accelerate the use of digital payments in e-commerce and enhance the efficiency of online transactions. While the law is hailed as progress towards financial modernization, some experts raise risks: a massive adoption of stablecoins could divert deposits from traditional banks or complicate monetary control. Asset manager Amundi has warned against a possible fragmentation of the global payment system. Unlike classic cryptocurrencies such as Bitcoin or Shiba Inu, stablecoins are designed to remain stable. This reliability gives them a clear advantage in daily use. However, by establishing a clear legal framework, the GENIUS Act could also benefit volatile cryptocurrencies by strengthening overall confidence in the digital ecosystem and attracting new investors to platforms where all types of assets coexist. Washington D.C., July 16, 2025.