US Passes Key Legislation for Cryptocurrency Regulation Amid Global Efforts
The US government has passed several key pieces of legislation aimed at regulating the cryptocurrency market. The GENIUS Act, signed into law on July 18, 2025, focuses specifically on payment stablecoins and their issuers.
This new law requires approved bank subsidiaries, federal nonbank issuers, and qualifying state issuers to maintain a 1:1 backing in eligible liquid reserves. They must also provide separate assets for redemption purposes, offer prompt redemption, and make monthly disclosures. Issuers will be subject to Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) duties, with penalties for non-compliance.
The law does not cover all cryptocurrency activity, only payment stablecoin issuance. Its effective date is January 18, 2027, or 120 days after primary federal regulators issue final implementing rules.