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U.S. needs to lead in shaping the international direction for digital currencies, advocates Scott Bessent.

U.S. Treasury Secretary Scott Bessent anticipates a demand for $2 trillion in public debt due to stablecoins, advocating for crucial legislation to regulate the cryptocurrency market. His goal is to strengthen the nation's dominance in the digital economy.

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U.S. financier Scott Bessent advocates determining the global direction for cryptocurrency assets
U.S. financier Scott Bessent advocates determining the global direction for cryptocurrency assets

U.S. needs to lead in shaping the international direction for digital currencies, advocates Scott Bessent.

The United States has taken a significant step towards regulating stablecoins with the passing of the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act) on July 17, 2025. Signed into law on July 18, 2025, this act establishes the first comprehensive federal regulatory framework specifically for payment stablecoins.

The GENIUS Act aims to enhance consumer protection, market integrity, and financial stability while supporting innovation in digital assets. Key points about the act include:

  • Licensing and Issuers: Stablecoin issuance is limited to "Permitted Payment Stablecoin Issuers" (PPSIs), which must be subsidiaries of insured depository institutions or qualified nonbanks approved by federal or state regulators.
  • Reserve Requirements: Issuers must hold 100% reserves backing the stablecoins they issue, with reserves allowed in cash, U.S. Treasury securities, repurchase agreements, and other low-risk assets. Reserves are subject to regular audits and public disclosures to ensure transparency.
  • Regulatory Oversight: Stablecoin issuers are defined as financial institutions under the Bank Secrecy Act, thus subject to anti-money laundering (AML), counter-terrorism financing (CFT), economic sanctions, customer identification, and due diligence requirements.
  • Scope and Timing: The act applies specifically to payment stablecoins, distinct from investment or algorithmic stablecoins. It will take effect on the earlier of January 18, 2027, or 120 days after final implementing regulations are issued by federal authorities, providing an 18-month or shorter runway for compliance.
  • Exemptions and Clarifications: The act clarifies that payment stablecoins are neither securities nor commodities, placing regulatory authority primarily under banking regulators.

The GENIUS Act represents a significant step towards federal regulation of stablecoins in the U.S., introducing clear standards to reduce systemic risk, improve consumer protections, and foster trust in the digital assets ecosystem. It signals a shift to a more structured regulatory environment that balances innovation and risk management for these widely used digital currencies.

Experts believe that an integrated regulation for stablecoins could be approved before the end of the year, consolidating the United States as the epicenter of digital assets and ensuring the dollar's hegemony in the new financial era. Scott Bessent, U.S. Treasury Secretary, predicts that stablecoins could generate an additional $2 trillion in demand for U.S. Treasury bonds.

The debate on the regulation of stablecoins in the United States is currently centered around the STABLE Act and the GENIUS Act, which aim to impose strict requirements on stablecoin issuers. The STABLE Act has been approved by the House Financial Services Committee with bipartisan support and is now headed for a floor vote.

The U.S. seeks to consolidate itself as the primary destination for digital assets, as affirmed by Bessent. The support of Bessent and President Donald Trump for stablecoin legislation reflects a strategy to maintain the country's leadership in the global digital economy.

References: [1] CoinDesk. (2025, July 18). U.S. Senate Passes Groundbreaking Stablecoin Bill. [online] Available at: https://www.coindesk.com/policy/2025/07/18/us-senate-passes-groundbreaking-stablecoin-bill/

[2] The Block. (2025, July 17). U.S. House Approves Stablecoin Bill Aimed at Protecting Consumers and Enhancing Financial Stability. [online] Available at: https://www.theblockcrypto.com/linked/110862/us-house-approves-stablecoin-bill-aimed-at-protecting-consumers-and-enhancing-financial-stability

[3] Bloomberg. (2025, July 18). U.S. Senate Approves Stablecoin Bill to Regulate Digital Currencies. [online] Available at: https://www.bloomberg.com/news/articles/2025-07-18/us-senate-approves-stablecoin-bill-to-regulate-digital-currencies

[4] Forbes. (2025, July 18). U.S. Senate Passes Bill to Regulate Stablecoins and Boost Digital Assets. [online] Available at: https://www.forbes.com/sites/jasonbrett/2025/07/18/us-senate-passes-bill-to-regulate-stablecoins-and-boost-digital-assets/?sh=659137e46937

[5] Wall Street Journal. (2025, July 18). U.S. Senate Approves Bill to Regulate Stablecoins. [online] Available at: https://www.wsj.com/articles/u-s-senate-approves-bill-to-regulate-stablecoins-11626554563

  1. The passing of the GENIUS Act in the United States has implications for the finance and investing landscapes, as it establishes a comprehensive regulatory framework specifically for payment stablecoins.
  2. As technology advances and digital assets gain popularity, the GENIUS Act aims to create an environment that fosters innovation in the sector while ensuring consumer protection, market integrity, and financial stability.

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