U.S. Signs Historic Crypto Policy: Stablecoin Regulation Shifts to FDIC Mandating 1:1 Reserves for Stability and Innovation

The U.S. government is set to release its first comprehensive cryptocurrency policy, signaling a pivotal regulatory shift in the digital asset landscape. On July 18, 2025, President Donald Trump signed the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act) into law, marking a transformative moment for stablecoin oversight. The legislation mandates that stablecoin issuers maintain a 1:1 reserve ratio and obtain a federal charter, shifting regulatory authority from the SEC and CFTC to the FDIC and Federal Reserve [1]. This move aims to enhance transparency and financial stability while fostering innovation in digital assets.

The White House is scheduled to unveil the full policy report on July 22, 2025, which will outline a structured framework for regulating cryptocurrencies. The report is expected to address broader implications of the GENIUS Act, including its impact on DeFi platforms, liquidity dynamics, and institutional participation in stablecoin markets. By centralizing oversight under traditional banking regulators, the law seeks to align stablecoin operations with existing financial standards, potentially boosting credibility for major stablecoin issuers [2].

The GENIUS Act’s provisions have already sparked significant industry responses. Proponents, including Treasury officials, argue that the law strikes a balance between innovation and risk mitigation. However, critics caution that stringent reserve requirements may disadvantage smaller platforms, favoring larger corporations like Meta, which is exploring a Diem relaunch [3]. Additionally, state-level regulatory actions, such as Connecticut’s crypto ban and Arizona’s restrictions on crypto ATMs, highlight the fragmented nature of U.S. oversight, raising questions about uniformity in enforcement [4].

The policy shift is part of a broader legislative agenda. The pending Securities Clarity Act (CLARITY Act) aims to define the regulatory status of crypto securities, while the Anti-CBDC Surveillance State Act seeks to limit the Federal Reserve’s power to issue a digital dollar without mimicking physical cash in privacy and accessibility. These measures reflect a cautious approach to CBDCs, prioritizing decentralization over centralized digital currency experiments [5]. Congressional leaders, including House Financial Services Committee Chairman Patrick McHenry, emphasize the urgency of advancing these bills, with the Senate expected to debate them post-August recess [6].

The White House’s push to integrate crypto into retirement accounts and real estate transactions has intensified partisan debates. While the administration frames the policy as a competitive necessity, Democratic lawmakers express concerns about consumer protection and systemic risks. The outcome of these debates, particularly during the September session, will shape the trajectory of crypto’s role in the U.S. financial system [7].

The release of the comprehensive policy underscores the U.S. government’s recognition of crypto’s growing influence. By addressing gaps in stablecoin regulation and clarifying legal frameworks, the GENIUS Act lays the groundwork for a more structured digital asset ecosystem. However, the absence of a unified CBDC strategy and the emphasis on state-level controls indicate a deliberate, measured approach to balancing innovation with regulatory oversight. As the Senate revisits these measures, the long-term impact on market liquidity, investor strategies, and institutional adoption will depend on the coherence of the final frameworks.

Sources:

[1] [https://www.jdsupra.com/legalnews/banking-regulators-clarify-crypto-8978629/](https://www.jdsupra.com/legalnews/banking-regulators-clarify-crypto-8978629/)

[2] [https://www.dlapiper.com/en-ca/insights/publications/blockchain-and-digital-assets-news-and-trends/2025/blockchain-and-digital-assets-news-and-trends-july-2025](https://www.dlapiper.com/en-ca/insights/publications/blockchain-and-digital-assets-news-and-trends/2025/blockchain-and-digital-assets-news-and-trends-july-2025)

[3] [https://phemex.com/news/article/us-advances-crypto-regulation-with-new-legislative-acts_13803](https://phemex.com/news/article/us-advances-crypto-regulation-with-new-legislative-acts_13803)

[4] [https://www.hoganlovells.com/en/publications/the-payments-newsletter-including-digital-assets-blockchain-july-2025](https://www.hoganlovells.com/en/publications/the-payments-newsletter-including-digital-assets-blockchain-july-2025)

[5] [https://cointelegraph.com/news/tom-emmer-cbdc-bill-federal-reserve](https://cointelegraph.com/news/tom-emmer-cbdc-bill-federal-reserve)

[6] [https://www.goodwinlaw.com/en/insights/newsletters/2025/07/newsletters-practices-dcb-digital-currency-blockchain-q2-2025](https://www.goodwinlaw.com/en/insights/newsletters/2025/07/newsletters-practices-dcb-digital-currency-blockchain-q2-2025)

[7] [https://www.coindesk.com/news-analysis/2025/07/28/trump-eyes-moving-u-s-economy-further-into-crypto-via-mortgages-401-k-s](https://www.coindesk.com/news-analysis/2025/07/28/trump-eyes-moving-u-s-economy-further-into-crypto-via-mortgages-401-k-s)