The GENIUS Act at a Glance

The GENIUS Act (Guaranteed Electronic Nationwide Infrastructure for US) is a bipartisan bill passed in mid-2025 that introduces a regulatory framework for stablecoins in the U.S. For the first time, it draws a legal line between compliant, Treasury-backed stablecoins and all others.

Key features:

  • Requires stablecoins to be 100% backed by short-term U.S. Treasuries
  • Limits issuers to licensed entities (banks, regulated fintechs)
  • Enables integration with traditional payment rails (Visa, Mastercard, FedNow)

Why It Matters for Your Wallet

Stablecoins are about to split into two categories:

  • GENIUS-compliant coins: Fully regulated, Treasury-backed (e.g. Circle's USDC)
  • Non-compliant coins: Still decentralised but possibly blacklisted from U.S. platforms (e.g. DAI, FRAX)

What changes:

  • Wallet support: Exchanges and custodial wallets may remove or limit access to non-compliant stablecoins
  • Cross-chain payments: On-chain transactions using non-compliant stablecoins could be restricted in U.S.-based apps
  • Bridge and DeFi use: Protocols may start filtering stablecoins by GENIUS status to remain compliant

How to Protect Yourself

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Photo by CoinWire Japan / Unsplash

This is regulatory sorting season. To avoid disruptions:

  • Diversify stablecoin holdings: Keep both regulated (USDC, PYUSD) and decentralised (DAI, crvUSD) options
  • Use self-custody wallets: Retain control if certain stablecoins are delisted from exchanges
  • Watch for wallet warnings: MetaMask, Phantom and others may flag non-compliant assets
  • Stay informed: Follow updates from Treasury, CFTC, and stablecoin projects

Who Benefits Most?

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Photo by appshunter.io / Unsplash
  • Big stablecoin issuers (Circle, PayPal, Paxos): Gain legitimacy, bank partnerships, and U.S. payment rails
  • Centralised exchanges (Coinbase, Kraken): Can streamline compliance and boost U.S. user trust
  • Traditional finance: Visa and Mastercard already piloting stablecoin payments over the new rails

What It Signals for Crypto

This is the clearest sign yet that:

  • Stablecoins will anchor U.S. digital payments
  • Decentralised coins will be pushed offshore or into niche use
  • Compliant crypto is merging with TradFi faster than most expect

Long-term impact? The GENIUS Act is the regulatory Trojan horse: it opens doors to national crypto payments… but only through trusted, regulated issuers.

Final Take

The U.S. is drawing lines. One side gets compliance, yield, and government rails. The other gets autonomy with rising friction.

Know which side your wallet sits on.

Most won’t prepare until it’s too late. But those who do? They’ll navigate this shift with confidence, freedom, and an edge. Join our Alpha Insider.