The GENIUS Act of 2025, passed by the U.S. Senate on June 17, 2025 and now Trump establishes a regulatory framework for stablecoins, defining them as digital assets pegged to fiat currencies like the U.S. dollar for payments. It requires issuers to maintain 1:1 reserves with liquid assets, ensures consumer protections like priority in bankruptcy, and bans yield-bearing stablecoins and issuance by large tech firms. The Act allows dual federal-state oversight, with smaller issuers (under $10 billion) regulated by states and larger ones by the Federal Reserve and OCC. While fostering innovation and reinforcing the dollar’s dominance, critics argue it may have weak regulations and risks enabling illicit finance or instability.