GENIUS Act 2025 Highlights

The GENIUS Act 2025, passed by the US Senate in June 2025, represents a significant legislative step in cryptocurrency regulation, with a widespread impact on stablecoins, digital currencies, and the broader crypto market. 

For SSC aspirants, understanding this development is important as it intersects with topics in international economics, current events, and policy reforms.

What is the GENIUS Act 2025, Passed by the US Senate?

The GENIUS Act 2025 (Governmental Enforcement of Neutral and Inclusive Use of Stablecoins) is a comprehensive US cryptocurrency law that mandates the regulation of stablecoins, a class of cryptocurrencies pegged to assets such as the US dollar. 

• The bill introduces monthly audits, full stablecoin reserve backing, and robust crypto compliance laws to ensure transparency and mitigate risks like money laundering.

• This US Senate crypto bill is designed to support the use of US-backed digital assets while strengthening the country’s financial leadership globally, especially amid growing de-dollarisation debates.

Key Features of the GENIUS Act 2025

• Stablecoin Regulation USA: Requires stablecoins to be fully backed by reserves.

• Monthly Audits: Mandatory reserve audits to ensure asset security and transparency.

• Crypto Compliance Law: Enforces strict anti-money laundering (AML) and know-your-customer (KYC) norms.

• Blockchain Policy Alignment: Supports innovation while creating legal accountability for crypto firms.

These features place the GENIUS Act 2025 at the center of future blockchain policy and international digital asset trade.

Impact on the Cryptocurrency Market

The GENIUS Act 2025's impact on cryptocurrency markets has been immediate and notable.

Shares of Circle Internet Group stock, a major issuer of USDC stablecoin, surged over 33% following the bill’s passage. Investors interpret the bill as a clear framework for market growth and regulatory certainty.

As predicted by the US Treasury, the crypto market could reach $3.7 trillion by the end of the decade. This optimistic US Treasury crypto stance is based on the belief that regulated stablecoins could drive more institutional adoption.

Trump’s Support and Political Backing

Trump’s support for the GENIUS Act and stablecoins has been vocal. He called the bill a strategic step toward securing the dominance of the US dollar in global markets. 

His administration’s Trump crypto policy highlights stablecoins as tools to reinforce U.S. economic strength amid international shifts toward digital currency.

GENIUS Act vs STABLE Act

The debate around the GENIUS Act vs the STABLE Act is central to understanding U.S. policy on digital assets. 

While both aim to regulate stablecoins, the STABLE Act limits reserve assets and puts oversight under the Office of the Comptroller of the Currency. 

In contrast, the GENIUS Act 2025 promotes broader asset backing with monthly audits and a more market-friendly approach.

Global Relevance and International Trade Law

The GENIUS Act 2025 is also significant in the context of international trade law, as it influences how other countries may regulate digital currencies. 

By formalizing stablecoin regulation, the U.S. sets a standard that could guide global trade and financial policy involving crypto.

It also ties into ongoing discussions about the role of stablecoins in de-dollarisation debates, where countries are seeking alternatives to the U.S. dollar. 

By promoting US-backed stablecoins, the GENIUS Act 2025 acts as a countermeasure to preserve U.S. financial influence.

How the GENIUS Act 2025 Affects Stablecoin Companies

Stablecoin firms must now:

• Conduct monthly reserve audits

• Ensure full reserve backing

• Comply with U.S. crypto compliance laws

This framework brings clarity to the sector and boosts confidence in digital currency systems.

Final Thoughts

The GENIUS Act 2025 is a landmark in U.S. cryptocurrency regulation. It offers a clear and structured approach to managing stablecoins, aligns with broader blockchain policy goals, and reinforces the US dollar's dominance in a digital future. 

As other nations watch closely, this bill may set a template for international standards in crypto and finance, further influencing international trade law in the coming years.