#Stablecoin Regulation Crackdown#

USA – GENIUS Act Officially Enacted
The GENIUS Act, signed into law by President Donald Trump on July 18, 2025, made history as the first federal stablecoin law in the US.
The law imposed strict requirements on stablecoin issuers, including a 1:1 reserve requirement, monthly audits and transparency, and full reserve assets (cash and short-term Treasury bonds).
The law also includes a ban on stablecoins paying interest—a regulation that had a significant impact on Ethereum-based DeFi platforms.
With the enactment of the legislation, the total crypto market capitalization surpassed $4 trillion for the first time, as stablecoin-related uncertainties diminished.
Global Reach and Rising Impact
While the Genesis Act provides a comprehensive regulatory framework for stablecoin issuers, complementary legislation like the STABLE Act is rapidly advancing toward full authority.
The law also prohibits stablecoin profits for members of Congress, but has been criticized for not including a direct limitation on the president.
With these regulations, the institutional use of stablecoins and their integration into payment systems is rapidly increasing. Major companies such as Walmart, Amazon, Mastercard, PayPal, and Shopify are actively working on them.
Market and Industry Implications
Ethereum, with the regulations, increased by 20% to approximately $3,500, while Bitcoin peaked at approximately $123,000.
The stablecoin market has already reached a value of ~$260–252 billion and is projected to reach $2 trillion by 2030.
Critical Discussions & Criticisms
Some experts are concerned about the lack of anti-money laundering (AML) and enforcement.
Allegations are swirling that stablecoin projects linked to the Trump family are exploiting legal shortcomings.
The Anti-CBDC Surveillance State Act is also rapidly advancing in the area of central bank digital currencies (CBDC).
What Does It Mean?
1. Institutional Adoption: Banks, payment companies, and crypto projects are now seriously advancing stablecoin adoption.
2. US Leadership: Regulations are being integrated not only with local but also with global tokenization and digital asset trends.
3. Competitiveness: Compliant institutions (Circle, Tether, etc.) will gain an advantage with this regulation, while those who fail to comply may withdraw from the US market.
Conclusion
As of July 23, 2025, stablecoin regulations are at a historic turning point. By establishing the first federal framework, the US has both boosted market confidence and laid the groundwork for the global tokenization race. However, issues such as AML vulnerabilities, political deadlock, and opposition to CBDC remain. The next step will be the implementation process—auditing, compliance, and technological infrastructure—and this will continue to play a vital role in the coming period.

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