Major financial companies such as Bank of America, Citigroup, and Fiserv are preparing to launch their own dollar-backed digital tokens under the US’s first stablecoin law. US President Donald Trump signed the GENIUS Act on July 18th, establishing federal rules for stablecoins. This step could pave the way for the use of digital assets in daily payments.
Stablecoins, generally crypto assets that maintain their value with a 1:1 dollar peg, have gained popularity in recent years, particularly among crypto traders.
The new law makes stablecoins, which offer advantages such as instant payments and low-cost international transfers, attractive to companies. Walmart and Amazon are also considering entering this field.However, experts warn that the law will not immediately open the door to markets. Companies need to make strategic decisions about whether to use stablecoins internally or offer them to customers. Furthermore, anti-money laundering (AML) and know-your-customer (KYC) obligations mean additional costs and regulatory oversight, especially for non-bank institutions.
Banks also have to consider critical issues such as liquidity requirements, capital requirements, and which blockchain infrastructure (Ethereum, Solana, or private blockchain) to use when issuing stablecoins.
Although the law has been signed, it may take years for implementation to take effect.
During this process, the OCC and the Treasury Department will issue additional regulations to clarify risk management and compliance requirements.
