On June 17, the U.S. Senate passed the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS Act). This law establishes the first federal regulatory framework for payment stablecoins. It defines who can issue them, how they must be backed, and how they should be supervised.

This is a major step forward for the global digital asset ecosystem, especially in the context of regulatory clarity and trust in dollar-based stablecoins

WHAT DO THE GENIUS ACT DO?

• Only banks and specially approved non-bank entities may issue payment stablecoins in the U.S.
• All stablecoins must be backed 1:1 with U.S. dollars, short-term Treasuries, or other approved liquid assets.
• Issuers must regularly report reserve holdings. Larger issuers are subject to annual audits.
• Holders have the legal right to redeem at face value, and reserves are bankruptcy-protected.
• Stablecoins are not classified as securities or commodities, reducing legal uncertainty.
• All issuers are subject to full BSA/AML obligations, including KYC and suspicious activity reporting.

WHY IT MATTERS?

The GENIUS Act is a big step for the U.S. financial system and the future of digital money. As the digital economy grows, stablecoins will play a bigger role. The GENIUS Act makes sure they are used safely, responsibly, and legally.

• For users: it brings stronger protection and confidence in redeemability and transparency.
• For businesses: opens doors to compliant stablecoin use in payments, lending, payroll and etc.
• For the U.S. dollar: strengthens the dollar’s role as the dominant digital settlement currency.
• For global fintech: non-U.S. companies can partner with licensed issuers to access regulated USD stablecoins.

CHALLENGES AND OPEN QUESTIONS

• Will small fintechs be able to qualify as issuers, or will the market consolidate around big players?
• How will stablecoins interact with future U.S. CBDC policies?
• Will other jurisdictions adopt similar models or push back against U.S. dollar dominance in digital finance?

A CLEARER FUTURE

At Solanteq we see the GENIUS Act as a foundational moment in digital finance, we understand the power and challenge of innovation in a shifting regulatory landscape. Whether you’re a PSP, bank, or fintech — the age of regulated crypto dollars is here. With clear rules now in place, stablecoins can finally fulfill their promise: fast, open, and secure value transfer at scale.

Our modular API‑first SOLAR platform enables seamless integration with card schemes, bank rails, and regulated stablecoin issuers — empowering financial organisations to connect stablecoins with real-world payments in a secure and compliant way.