In July 2025, Washington delivered the kind of headline that would have seemed unthinkable not so long ago: the GENIUS Act, America’s first comprehensive federal stablecoin law.
What the GENUS Act Means for Crypto
The Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act) is a U.S. law passed to regulate stablecoins. It establishes requirements for stablecoin issuers to segregate reserves, conduct monthly audits and maintain a minimum liquid capital, among other requirements. While it only seeks to regulate stablecoins, the act opens the door for how other digital assets can be regulated on the government level.
This long-awaited regulation didn’t just create rules only for stablecoins, digital tokens pegged to fiat, it set the whole new precedent for how crypto companies can confidently step into the financial world. And the timing couldn’t be better: right as big crypto players like the exchange Bullish are gearing up to hit Wall Street with their IPOs, the U.S. finally open up a real path for them.
Why the GENIUS Act Matters Beyond Stablecoins
The Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act) has set some ground rules for how stablecoins should work. To be precise, it has established requirements for stablecoin issuers to segregate reserves, conduct monthly audits and maintain minimum liquid capital, while implementing anti-money laundering and counter-terrorism financing measures and restricting issuance solely to authorized and permitted entities.
Put simply, the GENIUS Act makes stablecoins safer and more trustworthy for users by making sure companies keep real money backing up their digital coins and follow strong rules. They were backed by assets even before the law, but with the GENIUS Act now establishing formal standards, it builds greater confidence among individuals and businesses, encouraging broader adoption.
On the surface, it might seem to be about only one slice of the crypto market, stablecoins. But in practice, this confirms how the entire range of digital assets can be regulated on governmental level. Following this precedent, legislators not only from the U.S. but from the other countries as well can choose a sector, define it and set up barriers, with no need to completely suppress the previously poorly regulated sector.
Today, it’s stablecoins; tomorrow it could be tokenized Treasuries or digital identity cards. In that sense, the GENIUS Act is less about USDC or USDT, and more about the world saying: “We’re ready to integrate crypto into the financial system.”
Maturing Markets, Maturing IPO Expectations
The news has already made big waves in the industry: some crypto companies announced they are preparing for public stock offerings. Among them is Bullish — a renowned cryptocurrency exchange, which has filed for an IPO aiming to raise about $629 million and plans to list on the New York Stock Exchange. It already has a large trading volume and significant backing, so its step is a logical continuation of the previous growth. Others, like crypto exchange Gemini and crypto custody startup BitGo, are following the suit, both claiming a few weeks ago that they have successfully applied for a U.S. listing.
Why are these companies launching their IPOs now? Because the GENIUS Act made it clear: both regulators and institutional investors, after years of side-eyeing crypto, are starting to create much more stability and transparency in the crypto market. Of course, investors with big money want all in, but at the same time, to have a safety net — exactly what going public along with new laws can offer.
The companies themselves are also on a positive note, claiming that the market is in its best condition right now. So, these IPOs are a sign the crypto industry is putting on its grown-up suit, ready to prove it can do things by the book while keeping its young spirit.
The Danger of Narrow Focus and Overregulation
However, every silver lining has its cloud and in this case it’s overregulation. While everything is smooth so far, there is a risk that in this race to control stablecoins, lawmakers may create so many barriers that it will strike at true innovation. Europe’s experience with crypto regulation hasn’t been perfect, with many firms complaining it limits them, so there’s a worry the same might happen here in the USA or in other crypto-savvy nations.
That’s why it is important for regulators not to break away from real life. Laws and regulations should be flexible and created in collaboration — with the participation of not only legislators, but also those who create innovations and those who invest in them. If you make everything too rigid and the same for everyone, it will kill creativity and force promising projects to fade into the shadows or work abroad. As a result, the goal of regulation — to make the crypto industry safer and more transparent — will simply be lost.
On the other hand, focusing only on stablecoins might be too narrow-minded. So far, there is a regulation for stablecoins, that’s good. But what about more sophisticated DeFi tools? There is a real risk that regulators concentrate only on fiat-backed stablecoins and leave other exciting parts of DeFi and crypto untouched, which could hold back the next wave of progress.
So, the future could go two ways: the GENIUS Act could help stablecoins grow and become widely accepted, or if the rules get too strict and don’t change with the times, it might stop cool new ideas from growing. However, it’s quite soon to tell exactly which way it will go, but from what we witness now, tomorrow seems to be brighter than uncertain or gloomy.
Boosting Trust or Blurring Crypto’s Identity?
Laws, regulations, IPOs, investments, with all these things, some wonder if crypto is losing the rebellious edge that made it special in the first place. Is it becoming just a twin version of traditional finance, and if so, is that good or bad? Maybe it’s a bit of both. To grow and gain real trust, crypto needs to mature, but ideally, it can do that without losing the innovation and spirit that sparked it all.
Now that the GENIUS Act is in place and crypto companies are starting to go public, the whole industry is at an important turning point. It’s time for crypto to grow up a bit and move from scrappy startups to responsible players in the financial world.
The big task ahead is finding the right balance: making sure there are rules that keep everyone safe without choking off the creativity and excitement that make crypto special. If the U.S. can get this right, the GENIUS Act will become an official guide for how the whole world of digital money can move forward.
