Global supremacy through the utilization of stable cryptocurrencies
The US government is set to take a significant step in regulating stablecoins with the impending enactment of the Stablecoin Tethering and Banking for National Transformation (GENIUS) Act this summer. This landmark legislation aims to order and regulate stablecoins, ensuring they are issued on US soil.
Jeremy Allaire, CEO of Circle, has praised the GENIUS Act, calling it a "huge step forward in creating regulatory clarity for stablecoins." Circle's USDC stablecoin largely complies with the Act's requirements. The industry seems to agree with the GENIUS Act, with Allaire hailing it as a "big step forward in upgrading the dollar and making it more competitive."
However, not all stakeholders are entirely satisfied. Paolo Ardoino, CEO of Tether, has praised the GENIUS Act but expressed concerns about the law regulating stablecoins as if they only operate within U.S. borders. Ardoino, who advocates for distinguishing between domestic and international stablecoins, has stated that Tether already largely complies with the GENIUS Act through its cooperation with U.S. authorities.
The GENIUS Act requires stablecoin issuers to comply with various obligations, including monthly liquidity reports, regular public audits, full backing by US dollars or highly liquid assets, immediate redeemability, and adherence to the Bank Secrecy Act. These measures are designed to ensure the stability and security of these digital assets.
The US government sees stablecoins as a free technical upgrade for the dollar, avoiding the need to construct a Central Bank Digital Currency (CBDC) like the ECB. Finance Minister Scott Bessent stated that the government's goal is to ensure the US dollar remains the dominant global reserve currency using stablecoins.
The White House held its first "Digital Asset Summit" in March, where US crypto entrepreneurs met with the Trump cabinet. The US government will develop a regulatory "stablecoin regime" with the help of the "Office of the Comptroller of the Currency" and the IRS.
Meanwhile, some democratic lawmakers have proposed a more stringent version of the GENIUS Act that would federally oversee all stablecoins and ban big tech companies from issuing their own. However, this currently appears less likely to succeed. The Senate could vote on this stablecoin regime as early as August.
Coinbase is apparently in a good position regarding the GENIUS Act, which was enacted in summer 2025, and the company has actively engaged in the ongoing regulatory discussions around stablecoin rewards influenced by the Act.
The US government believes that stablecoins will strengthen and expand the global dominance of the dollar. However, international stablecoin issuers like Tether face unique challenges outside the U.S., and it remains to be seen how these will be addressed in the evolving regulatory landscape.
