18 July 2025
The GENIUS Act, the first US federal law for payment stablecoins, was approved on 18 July 2025 as Public Law 119-27.
U.S. Government Publishing Office (GovInfo)18 months after enactment (or 120 days after final rules, if earlier)
The Act takes effect on the earlier of 18 months after enactment or 120 days after the primary federal regulators issue final implementing regulations.
U.S. Government Publishing Office (GovInfo)3 years after enactment
Three years after enactment, digital asset service providers may not offer or sell a payment stablecoin in the US unless it is issued by a permitted issuer.
U.S. Government Publishing Office (GovInfo)Why this market is moving now
- The GENIUS Act was signed on 18 July 2025 and creates the first federal framework for payment stablecoins.
- It takes effect on the earlier of 18 months after enactment or 120 days after final regulations.
- From three years after enactment, US digital asset service providers may only offer stablecoins from permitted issuers.
- Federal Reserve staff say the stablecoin market grew more than 50% from early 2025 to April 2026.
Key figures
Each figure links to the page it came from.
| Figure | Value | Year | Source |
|---|---|---|---|
| The GENIUS Act, the first US federal law for payment stablecoins, was approved on 18 July 2025 as Public Law 119-27. | 18 July 2025 | 2025 | U.S. Government Publishing Office (GovInfo) |
| The Act takes effect on the earlier of 18 months after enactment or 120 days after the primary federal regulators issue final implementing regulations. | 18 months after enactment (or 120 days after final rules, if earlier) | 2027 | U.S. Government Publishing Office (GovInfo) |
| Three years after enactment, digital asset service providers may not offer or sell a payment stablecoin in the US unless it is issued by a permitted issuer. | 3 years after enactment | 2028 | U.S. Government Publishing Office (GovInfo) |
| Permitted issuers must hold identifiable reserves of at least 1 to 1 against outstanding payment stablecoins. | 1:1 minimum reserve ratio | 2025 | U.S. Government Publishing Office (GovInfo) |
| State-qualified issuers with up to $10 billion of consolidated outstanding issuance may opt for a substantially similar state-level regime. | 10 billion USD issuance threshold | 2025 | U.S. Government Publishing Office (GovInfo) |
| Issuers must publish the monthly composition of their reserves on their websites. | Monthly reserve disclosure | 2025 | U.S. Government Publishing Office (GovInfo) |
| Global stablecoin market capitalization reached $317 billion on 6 April 2026, more than 50% above early 2025, according to a Federal Reserve staff note. | 317 billion USD (global) | 2026 | Board of Governors of the Federal Reserve System |
| Circle reported USDC in circulation of $73.3 billion at the end of Q2 2026, up 19% year over year. | 73.3 billion USD (global USDC) | 2026 | Circle Internet Group (SEC Form 8-K, Exhibit 99.1) |
| Per attested disclosures, Tether holds about 1.04x reserves per USDT in circulation, with about 0.74x in higher-quality assets, while Circle holds full 1.0x backing in higher-quality reserves. | 1.04 x reserves per USDT | 2026 | Board of Governors of the Federal Reserve System |
Companies to watch
Circle
Issuer of USDC; reported $73.3 billion in circulation at the end of Q2 2026.
Tether
Issuer of USDT; the Federal Reserve note cites its attested reserves at about 1.04x per coin.
Paxos
Crypto platform named in the Federal Reserve note as the partner through which Interactive Brokers offers crypto trading. Source: https://www.federalreserve.gov/econres/notes/feds-notes/stablecoins-in-2025-developments-and-financial-stability-implications-20260408.html
Lead Bank
US bank the Federal Reserve note says opened accounts for tens of thousands of emerging-market users who convert to USDT or USDC. Source: https://www.federalreserve.gov/econres/notes/feds-notes/stablecoins-in-2025-developments-and-financial-stability-implications-20260408.html
What the full report covers
- 1
Executive summary
The answer on two pages: size, growth and what drives it.
- 2
Market size and outlook
History, the current year and a five-year view with base, low and high cases.
- 3
Segments and regions
Splits by product, buyer and geography across the US, Europe and MEA.
- 4
Company profiles
The main players, how they compete and where they are investing.
- 5
Data and method
Every figure in Excel, with the sources and assumptions behind it.
- 01Executive summary
The answer in one page: size, direction and what moves it - 02Market definition and scope
What is in and out of the United States market - 03Market size, 2021 to 2025
Historical series and growth rates - 04Outlook to 2031
Base, low and high scenarios with stated assumptions - 05Rules, policy and deadlines
Regulation and programmes that change demand - 06Drivers and barriers
What accelerates or slows adoption, by customer segment - 07Prices, costs and margins
Unit economics where public data allows - 08Competitive landscape
8 to 12 company profiles with recent moves - 09Opportunities and risks
For new entrants, suppliers and investors - 10Method and sources
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Frequently asked questions
When did the GENIUS Act become law?
It was approved on 18 July 2025 as Public Law 119-27, according to the Government Publishing Office. It takes effect on the earlier of 18 months after enactment or 120 days after final regulations.
How big is the stablecoin market?
A Federal Reserve staff note put global stablecoin market capitalization at $317 billion on 6 April 2026. Circle reported $73.3 billion of USDC in circulation at the end of Q2 2026.
What reserves must stablecoin issuers hold?
The Act requires permitted issuers to hold identifiable reserves of at least 1 to 1 and to publish the monthly composition of those reserves.
Which stablecoin issuers are largest?
The Federal Reserve note names Tether (USDT) and Circle (USDC) as the main collateralized issuers it compares. Circle reported $73.3 billion of USDC in circulation at the end of Q2 2026.
Can states regulate stablecoin issuers?
Yes, for smaller issuers. State-qualified issuers with up to $10 billion in outstanding issuance may opt for a substantially similar state regime, per Public Law 119-27.
Sources and method
The figures on this page come from the public sources listed below. Read how we work.
- U.S. Government Publishing Office (GovInfo): Public Law 119-27 - Guiding and Establishing National Innovation for U.S. Stablecoins Act (2025-07-18)
Approved July 18, 2025.
- U.S. Government Publishing Office (GovInfo): Public Law 119-27 - Guiding and Establishing National Innovation for U.S. Stablecoins Act (2025-07-18)
shall take effect on the earlier of (1) the date that is 18 months after the date of enactment of this Act
- U.S. Government Publishing Office (GovInfo): Public Law 119-27 - Guiding and Establishing National Innovation for U.S. Stablecoins Act (2025-07-18)
beginning on the date that is 3 years after the date of enactment of this Act, it shall be unlawful for a digital asset service
- U.S. Government Publishing Office (GovInfo): Public Law 119-27 - Guiding and Establishing National Innovation for U.S. Stablecoins Act (2025-07-18)
maintain identifiable reserves backing the outstanding payment stablecoins of the permitted payment stablecoin issuer on an at least 1 to 1 basis
- U.S. Government Publishing Office (GovInfo): Public Law 119-27 - Guiding and Establishing National Innovation for U.S. Stablecoins Act (2025-07-18)
a consolidated total outstanding issuance of not more than $10,000,000,000 may opt for regulation under a State-level regulatory regime
- U.S. Government Publishing Office (GovInfo): Public Law 119-27 - Guiding and Establishing National Innovation for U.S. Stablecoins Act (2025-07-18)
publish the monthly composition of the issuer's reserves on the website of the issuer
- Board of Governors of the Federal Reserve System: Stablecoins in 2025: Developments and Financial Stability Implications (2026-04-08)
aggregate market capitalization reaching $317 billion as of April 6, 2026, representing a more than 50% growth since early 2025
- Circle Internet Group (SEC Form 8-K, Exhibit 99.1): CIRCLE REPORTS SECOND QUARTER 2026 RESULTS (Exhibit 99.1 to Form 8-K) (2026-08-05)
USDC in circulation of $73.3 billion at quarter end, 19% growth year-over-year;
- Board of Governors of the Federal Reserve System: Stablecoins in 2025: Developments and Financial Stability Implications (2026-04-08)
USDT (Tether) maintains approximately 1.04x in reserves for each coin in circulation
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