President Donald Trump is poised to sign the GENIUS Act, which aims to regulate stablecoins in the US. The US House passed the bill, creating a framework that encourages stablecoin issuers to obtain banking licenses while limiting their operations. A controversial aspect is the prohibition of interest or yield offerings on stablecoins, which could significantly alter marketing strategies for these tokens. The act also stipulates that issuers must maintain 1:1 reserves and publish reserve reports subject to public examination. After three years, only approved issuers can offer stablecoins in the US, with foreign issuers facing strict compliance requirements. Multiple regulatory agencies will oversee the stablecoin market, establishing both federal and state-level frameworks for these entities. With the expected signing of the bill, the future of decentralized finance (DeFi) remains uncertain, sparking discussions of potential future regulations to address these changes.

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