In the wake of Donald Trump’s victory over Kamala Harris in the presidential election, the new administration wasted no time advancing its pro-crypto agenda. Among the first moves: launching a specialized SEC task force to establish a clear regulatory framework for digital assets.
Now, all eyes are on a landmark piece of legislation — the GENIUS Act — which could transform the future of stablecoins in America.
What Is the GENIUS Act?
Stablecoins are digital tokens pegged to fiat currencies like the U.S. dollar and play a crucial role in crypto markets by offering price stability. The GENIUS Act, recently signed into law, aims to regulate this booming sector and bring transparency to an often murky corner of the industry.
While some view it as a routine compliance update, leading crypto analyst Quinten believes its impact could be profound — redrawing the map of winners and losers in the digital asset economy.
Key Features of the GENIUS Act
The new law introduces sweeping requirements for stablecoin issuers:
- Mandatory Licensing: Issuers must obtain state or federal licenses.
- 1:1 Asset Backing: Stablecoins must be fully backed by cash or U.S. Treasuries.
- Monthly Reserve Reports: Public, detailed disclosures of reserve holdings are required.
- AML & KYC Compliance: Strict anti-money laundering and customer verification mandates.
- Ban on Political Ties: Issuers cannot be affiliated with political organizations.
However, controversy is already brewing over the involvement of World Liberty Finance, which reportedly has ties to Trump’s family — raising questions about impartiality.
A Boost for U.S. Stablecoin Dominance?
Quinten argues that the GENIUS Act delivers long-awaited legal clarity — particularly attractive to banks and Fortune 500 companies considering stablecoin issuance.
In a viral X post, Quinten predicted a wave of institutional adoption, hinting that tech and financial giants like Amazon, Apple, Walmart, and JP Morgan are quietly preparing to enter the space.
🚨 THE GENIUS ACT JUST PASSED 🚨
— Quinten | 048.eth (@QuintenFrancois) June 18, 2025
The U.S. is finally regulating stablecoins and it’s bigger than you think
Here’s why this bill could reshape crypto, supercharge $USDC and $USDT, and unlock the next wave of adoption 🧵 pic.twitter.com/Q45IPJM9Vj
Yet, the act could spell trouble for decentralized projects:
- Operating without a license is banned in the U.S.
- Government powers allow freezing of stablecoin assets.
- Violators face up to 5 years in prison or $1 million/day in fines.
Quinten warns that such harsh measures could effectively drive decentralized and foreign stablecoins out of the U.S. market altogether.
Also Read: Trump Media Files for Dual Bitcoin-Ethereum ETF, Crypto.com Named Custodian
The GENIUS Act marks a dramatic shift in U.S. crypto policy — one that champions institutional adoption and heavily regulated, dollar-backed digital assets.
While it paves the way for corporate stablecoins, it also risks stifling decentralized innovation. As Trump’s crypto task force gains traction, the U.S. could emerge as a global leader in regulated digital assets — but at what cost to crypto’s original ethos?
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
