GENIUS Act Signed – Stablecoins Get Clarity! (pun intended)

President Trump signed the GENIUS Act on July 17, 2025, setting rules for stablecoins. Find the link here.

Quick analysis on who won and who did not

Winners:

• U.S. stablecoin issuers: Clear rules let approved issuers (think USDC) call their stablecoins cash equivalents, boosting adoption.
• Treasury market: 100% reserve backing with U.S. dollars or Treasuries drives demand for U.S. debt.
• Consumers: Strict reserves and insolvency protections shield users from shady operators.

Losers:

• Non-compliant issuers: Unapproved stablecoins (like some foreign ones) can’t be cash equivalents and face restrictions.
• Big Tech: Barred from issuing stablecoins, keeping giants like out.
• DeFi purists: AML and sanctions rules add oversight, clashing with decentralization.

Timeline to Watch:

• July 17, 2025: Trump signs the Act.
• August 16, 2025: Treasury starts a 60-day comment period for AML innovation.
• July 17, 2026: Regulators issue final rules.
• January 17, 2027 (or earlier): Act takes effect 18 months post-signing or 120 days post-rules.Key Highlight: 100% reserves (cash or Treasuries) with monthly disclosures ensure trust and stability.

Stablecoin Status for accounting?

Not securities or commodities—stablecoins are payment tools. Permitted ones are cash equivalents under FASB (Level 1 assets like Treasuries). Non-permitted? Likely Level 2 or 3, with tougher valuations.