U.S. GENIUS Act deadline set for July 18 as stablecoin rules near finalization

The GENIUS Act, enacted on July 18, 2025, imposes a one‑year rulemaking deadline that expires on July 18, 2026. Six federal agencies – the OCC, FDIC, NCUA, Treasury, FinCEN and OFAC – must publish final regulations governing U.S. stablecoins. The rulemaking will cover reserve composition, monthly audits, licensing, AML programs, and a ban on paying interest to token holders.

The stablecoin market valued at roughly $311‑$322 billion, with USDT and USDC together holding about 80% of total circulation. The new rules set a $5 million minimum capital floor for new issuers and require a three‑tier liquidity structure (10% redeemable same‑day, 30% within five days, 60% over a longer period). Large incumbents such as Circle’s USDC, JPMorgan and US Bancorp can meet these thresholds, while smaller fintech issuers may struggle with the compliance cost floor. Tether, as an offshore issuer, is not subject to the yield prohibition that will affect U.S. stablecoins. The FDIC will treat stablecoin holders as uninsured, and the Federal Reserve has yet to issue its portion of the framework, leaving a key gap.

Industry observers say the compliance burden will likely consolidate the market around the most capitalized players, reshaping the competitive landscape of U.S. stablecoins.