GENIUS Act Sets US Crypto Rules and Stablecoin Framework
President Donald Trump signed the GENIUS Act into law on June 12, 2024, creating the first major US crypto regulation framework for digital assets. The GENIUS Act defines cryptocurrency classifications, mandates stablecoin issuers to hold 100% reserves in cash or liquid securities, requires regular audits, and enforces AML and KYC standards. It grants joint enforcement power to the SEC and CFTC, with Treasury overseeing national security and sanctions, and establishes a Digital Asset Innovation Office to foster industry collaboration. Following the signing, the SEC’s Crypto Task Force invited public feedback on drafting detailed rules under the GENIUS Act, covering stablecoin issuance standards, custody requirements, disclosure obligations, and market-structure rules for trading and clearing. By engaging stakeholders early, the SEC aims to build transparent, actionable crypto regulation that supports innovation, reduces legal uncertainty, and bolsters market stability.
Bullish
The GENIUS Act and subsequent SEC feedback process reduce legal uncertainty and provide clear guidelines for stablecoin issuance and digital-asset oversight. In the short term, traders are likely to see improved market confidence and liquidity as regulatory risks decline. Over the long term, a defined US crypto regulation framework encourages institutional participation and innovation, supporting sustained growth and higher trading volumes.