The GENIUS Act Paves the Way for Big Companies to Launch Their Own Stablecoins

The landmark crypto bill passed in Congress opens the door for big companies like Amazon and Walmart to launch their own stablecoins. This could save them significant amounts in credit card processing fees and give them more control over payment rails. However, it would also be a blow to credit card issuers like Visa and Mastercard, who would lose billions in interchange fees if a fraction of customers start using store-issued stablecoins instead.

The landmark crypto bill, known as the GENIUS Act, has been passed by the U.S. Congress, signaling a significant shift in the country's stance towards cryptocurrencies. The bill, which stands for "Guiding and Establishing National Innovation for U.S. Stablecoin," aims to provide formal regulations for stablecoins and marks a departure from the Biden administration's stricter approach.

Stablecoins, a type of cryptocurrency pegged to the value of fiat money like the U.S. dollar, are viewed as a safer alternative due to their reserve requirements. This means that companies issuing stablecoins must hold the equivalent amount in reserve, ensuring that users can be promptly reimbursed when they wish to cash out. The new legislation seeks to formalize these rules, mandating that companies must ensure they are holding proper reserves and providing information about their holdings. Additionally, the bill introduces anti-money laundering rules to address concerns about stablecoins being used by criminals [1].

The passage of the GENIUS Act opens the door for more issuers to launch their own stablecoins. Retail giants like Amazon and Walmart have been exploring the possibility of issuing their own coins, which could significantly reduce their credit card processing fees. Currently, retailers lose an estimated 2% to 3% of every transaction to these fees. By adopting stablecoins, companies could save millions, as they would be cutting out an expensive intermediary [3].

However, this shift would also have a significant impact on credit card issuers like Visa and Mastercard. If a fraction of their customer base starts using store-issued stablecoins instead of Visa-backed cards, it could result in billions in lost interchange fees. Visa has acknowledged this potential market shift and is laying the groundwork to integrate stablecoins into the future of mainstream payments [3].

The GENIUS Act was passed after intense lobbying from the crypto industry, which spent over $100 million in Congressional races last year. This level of spending has raised concerns about political influence and the ability of the industry to silence opposing lawmakers [1].

The bill's passage also marks a significant win for President Trump, who campaigned on making the U.S. "the crypto capital of the planet." His family has financial interests in a crypto company that has issued its own stablecoin [1].

While the GENIUS Act provides a new framework for stablecoins, critics argue that the rules are not strong enough and that the bill allows non-financial institutions to issue stablecoins without adhering to all the regulations that banks and other financial firms must follow [1].

In conclusion, the GENIUS Act represents a significant milestone in the regulation of cryptocurrencies, particularly stablecoins. While it offers potential benefits for retailers and consumers, it also raises concerns about the impact on credit card issuers and the potential for political influence in the legislative process.

References:
[1] https://www.npr.org/2025/07/17/nx-s1-5451413/crypto-week-stablecoin-genius-act-trump
[2] https://www.nbr.co.nz/finance/comcom-applies-more-limits-on-visa-mastercard-interchange-fees/
[3] https://www.businessinsider.com/genius-act-passed-two-retailers-are-considering-stablecoins-wmt-amzn-2025-7