U.S. Introduces GENIUS Act to Regulate Stablecoins

GENIUS stablecoins act

GENIUS Act abbreviates for Guiding and Establishing National Innovation for U.S. Stablecoins Act of 2025.

The goal of GENIUS Act is to provide legitimacy and security to the stablecoin market through a clear regulatory framework, while consolidating the dominance of the U.S. dollar in digital finance.

The key contents of the bill include:

• Reserve requirements: Stablecoin issuers must be 100% backed by reserves, and reserve assets must be highly liquid assets such as U.S. dollars and short-term U.S. Treasury bonds, and the reserve composition must be disclosed monthly.
• Regulatory classification: Large issuers with a market value of more than $10 billion (such as Tether and Circle) must be directly regulated by the Federal Reserve System or the Office of the Comptroller of the Currency (OCC), and small issuers can be regulated by the state.
• Transparency and compliance: Prohibit misleading marketing (such as claiming that stablecoins are guaranteed by the US government), require issuers to comply with anti-money laundering (AML) and know your customer (KYC) regulations, and issuers with a market value of more than US$50 billion must audit their financial statements annually to ensure transparency.

This means that the US attitude towards stablecoins is actually friendly, but the premise is that stablecoins must be backed by US dollars and must meet the requirements of openness and transparency.

Crypto exchanges and stock brokers competing now

Recently in Hong Kong, 2 large retail brokers Futu and Tiger have enabled users to deposit and withdraw crypto.

In crypto world, exchanges are trying to enable users to trade equities from their crypto exchange.

• Kraken will offer 24/7 global trading of tokenized shares in over 50 U.S. stocks and ETFs, including Nvidia, Tesla, and SPY. The tokens, deployed on Solana, will be known under the name “xStocks”.
• Bybit has launched direct trading of global stocks using the stablecoin USDT as part of Bybit's existing Gold & Forex (MT5) product suite. Bybit allows users to trade 78 global equities, including major companies like Apple, Tesla, Meta, Nvidia, and Amazon.

BlackRock's Ether ETF gets key SEC acknowledgment

The U.S. Securities and Exchange Commission (SEC) has officially acknowledged in-kind redemption for BlackRock's spot-based Ethereum exchange-traded fund (ETF).

It essentially means that the regulator is currently considering the aforementioned proposal, but there is no guarantee that it will eventually be removed.

The regulator also made a similar move with spot Bitcoin ETFs in January.

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