The GENIUS Act turns 1: State of Crypto

President Donald Trump signed the GENIUS Act into law in July 2025, marking the first major federal legislation in the United States to address stablecoins specifically. This law tasked federal agencies such as the Office of the Comptroller of the Currency (OCC) and the Federal Depository Insurance Corporation (FDIC) with developing regulatory frameworks governing stablecoin issuers, including their reserve management, governance, and operational standards. One year later, regulators are still in the process of finalizing these rules, although several proposals have been published for public comment.

Notably, the FDIC released 144 questions addressing potential oversight approaches, focusing on issues like custody, capital, and liquidity standards for stablecoin issuers. The OCC also issued its interpretation of the law in a proposal earlier this year. These developments indicate a clearer regulatory direction, though formal implementation of stablecoin rules remains forthcoming. Industry leaders such as Crypto Council for Innovation CEO Ji Hun Kim regard the passage of the GENIUS Act as a "landmark moment" that advances stablecoins toward mainstream adoption.

In parallel, lawmakers continue work on the Digital Asset Market Clarity Act, a separate bill aimed at clarifying digital asset regulations more broadly. However, its passage faces hurdles, primarily related to ethics provisions that would prohibit senior government officials from profiting from crypto ventures. Senator Elizabeth Warren recently called on President Trump to provide an updated financial disclosure covering the first half of 2026, following revelations in his 2025 filing that he earned over $1.4 billion from crypto activities.

The political debate continues, with a House Financial Services subcommittee reiterating the need for clear regulatory rules to foster innovation and market growth. While the GENIUS Act lays a statutory foundation for stablecoins, the final shape of crypto regulation and market clarity depends on ongoing negotiations and agency rulemaking expected in the coming months. Congress and regulators are working within a complex environment balancing innovation, investor protection, and ethical concerns.