Aug25
Stablecoins, Stablecoins, Stablecoins. Their time has arrived! I’m getting sooo many inquiries about the GENIUS Act and how credit unions and banks can prepare for the coming changes to the U.S payments system. Everyone in financial services seems to be talking about it.
Of course, July was a huge month for stablecoins. The House passed the GENIUS Act and it was signed into federal law.
It’s the first federal framework designed to regulate payment stablecoins in the U.S., a step that could reshape how traditional financial institutions, fintechs, and large retailers engage with digital payments.
For those not in the loop: Stablecoins are crypto assets pegged to a fiat currency like the dollar. Think of them as using the technology of crypto but having the value of the dollar. Fast to send, efficient processing, and designed not to swing in value like Bitcoin.
Until now, they’ve lived in a legal gray zone. Some backed by treasuries, some backed by nothing. Some issued by U.S. fintechs, others by decentralized protocols. The regulatory oversight? Fragmented at best.
The GENIUS Act changes that.
Here’s the TLDR:
Only regulated issuers can issue payment stablecoins.
Issuers must hold 1:1 reserves (like cash or T-bills).
Monthly public disclosures + annual audits are mandatory.
It sets up a dual regulatory model: → Federal oversight for large issuers → Coordinated state oversight for smaller ones (<$10B issuance)
And importantly: Stablecoins will no longer be the wild west. They’ll become part of the U.S. financial infrastructure.
Why this matters: This is less about crypto, and more about payments infrastructure. We’re watching the rails evolve, with a potential disruption of cards, ACH, and wires. This Act gives traditional finance a roadmap for how to launch, custody, and use stablecoins safely.
A few questions I’m thinking about: How will credit unions and banks rethink their payments strategy now that stablecoins are on the table? Could stablecoins finally replace our payment rails from the 1970s?
Most important - Will this be a disruptive threat or a new opportunity for traditional financial service providers?
Now that the House passed the GENIUS Act and the President has signed it, the signal is clear: Stablecoins are here to stay - and Washington is finally writing the rulebook.
By Lamont Black
Keywords: Cryptocurrency, Emerging Technology, FinTech
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