GENIUS Act Signed Into Law, Creating First U.S. Federal Stablecoin Framework

The GENIUS Act became U.S. federal law on July 18, 2025, marking the first time Congress has established a comprehensive regulatory framework specifically for payment stablecoins. The legislation addresses four core areas: who is permitted to issue payment stablecoins, what assets those stablecoins must be backed by, how token holders can redeem their holdings, and which federal or state regulators are responsible for supervising issuers.

The law is broadly applicable to dollar-backed stablecoins circulating in the United States, meaning it sets a legal baseline for any issuer operating in or targeting U.S. markets. For the XRP ecosystem, this is particularly relevant given Ripple's RLUSD stablecoin, which is a dollar-backed token issued on the XRP Ledger and Ethereum.

The passage of the GENIUS Act resolves a prolonged period of regulatory uncertainty that had surrounded stablecoin issuers in the United States. Issuers will now face defined capital and reserve requirements, along with clear supervisory authority, which could affect how RLUSD is structured, marketed, and maintained going forward.

The broader crypto industry had lobbied extensively for stablecoin legislation, viewing it as a prerequisite for institutional adoption at scale. With the law now in effect, compliance timelines and implementation details from relevant regulators will be the next developments to watch.