U.S. Stablecoin Regulation Focuses on Domestic Framework

The GENIUS Act of 2025 is a landmark piece of legislation aimed at regulating stablecoins in the United States, with a focus on strengthening domestic control over these financial instruments. The act prioritizes domestic policy concerns over potential threats from abroad, notably Israel or China. Despite these nations’ involvement in global finance, the U.S. has taken a proactive stance by ensuring stability and transparency within its own market. 2025 saw the U.S. enact this law, which requires stablecoin issuers to maintain a 1:1 reserve backing for their tokens. This crucial measure is enforced by key federal agencies like the Treasury and Federal Reserve, demonstrating a commitment to robust compliance and consumer protection.