How will the GENIUS Act work in the US and impact the world? - The World Economic Forum

The GENIUS Act is a proposed US framework designed to bring regulatory clarity to payment stablecoins. Its core aim is to establish clear requirements for issuers, including maintenance of high-quality liquid reserves, public disclosure, and compliance with anti-money laundering rules. By defining a federal pathway alongside state-level regulators, the Act seeks to remove the current patchwork ambiguity, potentially allowing stablecoin projects to operate more predictably within a single, consistent national standard.

The market relevance extends far beyond US borders. Because most major stablecoins are pegged to the dollar, a robust US legal framework could reinforce the dollar's role in digital financial systems and global cross-border payments. Moreover, the legislation may influence international regulatory convergence, offering a reference point similar to the EU’s MiCA. What to watch: the Act's final legislative details, particularly its reserve and consumer protection provisions, and how US rules interact with other expanding global regulatory regimes.