Insights

The US GENIUS Act is Here! How Will the Stablecoin Market Transform?

Jun 18, 2025

Author: Team SOOHO.IO

In June 2025, the US Senate passed the GENIUS Act, a major stablecoin regulation bill, with bipartisan support. This legislation establishes the first comprehensive federal regulatory framework for the US stablecoin market—cryptocurrencies pegged to real assets like the US dollar. While the House still needs to make its decision, President Trump's hope to sign the bill by August suggests rapid passage. Today, the SOOHO.IO blog will explain what this 'GENIUS Act' is all about and how it will impact us.


What Exactly is the GENIUS Act?


GENIUS stands for "Guiding and Establishing National Innovation for US Stablecoins." As the name suggests, it embodies America's commitment to leading innovation in the stablecoin sector and establishing proper standards.


For those unfamiliar with stablecoins, they are cryptocurrencies pegged to the value of real assets like the US dollar or other stable assets. Unlike Bitcoin, which experiences price volatility, stablecoins maintain stability—hence the name "stable."


Until now, there were no clear rules governing stablecoins, creating significant ambiguity. This legislation finally establishes America's definitive framework: "This is how we'll do it!"



🔍 Key Points of This Legislation


Clear Rules at Last - Federal Regulatory Framework Introduction

  • Stablecoin issuers must back their tokens 1:1 with dollars or liquid assets like short-term treasuries

  • Monthly disclosure of reserve holdings is mandatory

  • Major federal agencies including the OCC (Office of the Comptroller of the Currency) and Federal Reserve gain supervisory authority, bringing clarity to previously ambiguous regulatory environment

  • Large issuers with over $10 billion will be directly supervised by the Federal Reserve or OCC, while smaller issuers fall under state regulation



Digital Currency Finally Enters the Mainstream - Digital Asset Industry Integration and Trust Enhancement

  • Digital currencies now officially become part of the financial system

  • Regulations for investor protection and consumer trust (accounting audits, bankruptcy protections, etc.) are introduced

  • This enables more active participation from institutional investors and major financial institutions

  • Anti-Money Laundering (AML) and Know Your Customer (KYC) requirements match those of traditional financial institutions



Intensified Competition Expected - Competition and Innovation Acceleration

  • Previously dominated by a few companies like Tether (USDT) and Circle (USDC), the market now opens to banks

  • Clear regulatory environment enables entry of various new issuers including banks

  • Innovative financial services based on stablecoins—payments, remittances, asset management—are expected to rapidly expand across the US

  • Increased competition likely means better services for consumers!



Strengthening Dollar Dominance - Global Financial Order and Dollar Hegemony Enhancement

  • With over 99% of stablecoins pegged to the US dollar, this legislation will further cement the dollar's crucial role in the digital realm

  • By leading with clear regulations and consumer protection standards, the US can strengthen its dominance in the global cryptocurrency market

  • This will further solidify the dollar's position within the global digital financial order



How Will Banks Change?


New Opportunities Emerge - Expanded Stablecoin Market Entry

  • Traditional banks can now officially enter stablecoin issuance and related businesses through subsidiary establishment procedures

  • Integration with existing financial infrastructure enables innovative service launches



But Rules Become Stricter - Enhanced Regulatory Compliance and Supervision

  • Banks must comply with the same level of regulations as traditional financial institutions: AML, reserve management, accounting audits, etc.

  • Large issuers with over $10 billion will be directly supervised by the Federal Reserve or OCC



Market Transformation Ahead - Market Competition and Innovation Promotion

  • Competition among banks, fintech companies, and existing stablecoin firms will intensify, leading to diverse innovative services in payments, remittances, and asset management

  • However, stablecoin activation may surge demand for short-term treasuries (T-bills) and shift some bank deposits to stablecoins, creating structural changes in traditional financial markets

  • Banks need advance preparation including subsidiary establishment and internal infrastructure upgrades for stablecoin business entry



What Impact Will This Have on Korea?


We Need Regulatory Updates Too - Direct Regulatory Impact

  • The GENIUS Act establishes clear standards for US stablecoin issuance and operations (1:1 reserves, federal supervision, AML/KYC), serving as a global regulatory benchmark

  • Korea's discussions on the Digital Assets Basic Act and won-denominated stablecoin legislation are intensifying, with strong momentum to benchmark US legislation

  • Domestic exchanges and companies handling US-issued stablecoins face growing pressure to voluntarily adopt US-style compliance management and investor protection standards



Won-Denominated Stablecoins Become Critical - Monetary Sovereignty Issues

  • Excessive proliferation of dollar-based stablecoins could burden Korea's economy through weakened won (KRW) demand, increased exchange rate volatility, and foreign currency outflows

  • Korean government and National Assembly must accelerate responses including won-denominated stablecoin issuance and Digital Assets Basic Act enactment to protect monetary sovereignty

  • The Digital Assets Act proposed by Representative Min Byung-deok in June currently allows companies with over 500 million won in capital to issue won-denominated stablecoins with Financial Services Commission approval



Alignment with Global Standards Required - Global Regulatory Harmony and Market Competition

  • With strong US regulatory introduction, Korea needs to align its legal framework to minimize regulatory arbitrage with global standards

  • Overly strict regulations could drive domestic issuance and distribution demand overseas, requiring balance between market competitiveness and regulatory harmony

  • Detailed adjustments suited to domestic conditions are needed for key issues like reserve requirements and interest payment prohibitions, similar to the US GENIUS Act

  • Lowering entry barriers to activate private sector participation would be beneficial



New Services Will Emerge - Industrial and Financial Market Structural Changes

  • The GENIUS Act brings the stablecoin industry into the mainstream, promoting market entry by banks, fintech companies, and global enterprises

  • Korea must rapidly advance innovative services and digital asset industry development based on stablecoins—payments, remittances, asset management—to restore competitiveness



SOOHO.IO: Leading a New Paradigm in Financial Blockchain

The US GENIUS Act is having a powerful impact on digital asset and stablecoin regulatory environments worldwide, including Korea. This isn't just an American issue—it will bring major changes to the global digital asset market. Korea must especially accelerate legislative and industrial development for monetary sovereignty, investor protection, and global competitiveness enhancement, rapidly implementing institutional improvements suited to domestic conditions while referencing US regulatory standards.

Amid the global stablecoin regulatory transformation triggered by the GENIUS Act, SOOHO.IO is redefining the paradigm of financial blockchain technology. SOOHO.IO's technical capabilities are leading the digital transformation of the APAC financial ecosystem across core areas including stablecoins, cross-border payments, and CBDCs. In particular, the Touchstone infrastructure utilizing Reagent security technology and C2CC cross-chain protocol achieves perfect balance between regulatory compliance and innovation, paving the way for financial institutions to safely and efficiently adopt blockchain technology.

The future of finance has already begun. Are you ready to create new history with SOOHO.IO at the forefront?


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