Insights: Publications A Guide to the Genius Act

The Bank Director

Written by Christopher I. Lapp

While the full ramifications of the GENIUS Act will only become clear with time, bankers should monitor the rulemaking process and consider the implications of wider stablecoin adoption for their institutions.

On July 18, 2025, President Donald Trump signed into law the Guiding and Establishing National Innovation for U.S. Stablecoins Act, better known as the GENIUS Act, which provides a framework for the regulation of “payment stablecoins.” Stablecoins are digital assets that are issued for payment or settlement and are pegged to a currency, such as the dollar, and are redeemable for a fixed value, such as $1 per stablecoin. Accordingly, the value of a dollar-pegged stablecoin on an open market is expected to mirror the redemption value or reflect a de minimis discount. The act is the first legislation of its kind in the United States and could result in a cryptocurrency becoming mainstream in the payment system.

Click here to read the full article from Christopher Lapp.

*This article appears in the fourth quarter 2025 issue of Bank Director magazine.

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