- Main actions and leadership involved in regulatory changes.
- Stablecoin issuers to face new compliance rules.
- Potential shift in market liquidity and US dollar demand.
The US Treasury has initiated a public comment period until October 18, 2025, on stablecoin regulations under the GENIUS Act, the first federal stablecoin law signed by President Trump.
Potential shifts in stablecoin liquidity may impact wider crypto markets, as enforced compliance ramps up institutional investments in US debt and drives demand for regulated assets.
Main Content
Public Feedback on New Regulations
The US Treasury has opened a public comment period, seeking industry feedback on new stablecoin regulations following the GENIUS Act’s enactment. This initiative began on August 18, 2025, and will gather stakeholder inputs for 60 days.
Involved parties include President Donald Trump, who signed the law, and the US Secretary of the Treasury, responsible for facilitating the feedback process. The regulations will only permit specific financial entities to issue stablecoins.
“The GENIUS Act provides a crucial framework for the regulation of payment stablecoins, ensuring transparency and security in our financial system.” — President Donald Trump
Market Implications and Requirements
Immediate effects include expected shifts in institutional demand for US Treasuries due to the requirement for reserve backing. This could impact financial markets and the way US dollar-backed stablecoins are issued and maintained.
The regulations will require 1:1 reserve backing for stablecoins, affecting how financial entities manage assets and increasing the role of stablecoins in global currency dynamics. Legal implications could reshape the market structure and issuer operations. More information can be found through the House Financial Services Committee discussions.
Stakeholder Involvement and Future Directions
Stakeholders are encouraged to provide feedback on the proposed regulations. The public input period aims to gather insights necessary for drafting detailed requirements, impacting consumer protection and issuer compliance in the stablecoin sector.
As the first federal stablecoin law, the GENIUS Act represents a major shift in regulating digital currencies. The ongoing evaluation of stablecoin reserves may influence market stability and regulatory compliance strategies for financial institutions.
