The GENIUS Act became law on July 18, 2025, giving stablecoin issuers until July 2028 to meet new federal reserve and disclosure requirements. Companies that fail to comply by that deadline will lose access to the U.S. market.
What the law requires
The legislation sets federal standards for stablecoin issuers operating in the United States. It mandates reserve backing and regular public disclosures — rules that until now varied by state or were left to private agreements. The act does not name specific reserve ratios or disclosure formats; those details will come from regulators during the three-year implementation period.
Why the deadline matters
July 2028 is a hard stop. Issuers that do not meet the new federal rules after that date will be barred from offering their tokens to U.S. customers. That means losing the largest market for digital dollar-pegged assets. The law does not include a grace period or extension mechanism.
What issuers are doing now
Stablecoin companies are already reviewing their reserve structures and reporting practices. Some operate with fully backed reserves and publish monthly attestations; others rely on less transparent models. The three-year window gives them time to align with whatever specific rules emerge from the Federal Reserve and other agencies.
No major issuer has publicly said it will leave the U.S. market. But the clock is ticking. Companies that cannot or will not comply by July 2028 will have to wind down their U.S. operations or shift to jurisdictions with looser rules.
The next milestone is the release of proposed regulations, expected within the next 12 to 18 months. Until then, issuers are working with what they know — and waiting for the fine print.
