The Federal Reserve (Fed) recently announced a new act called the GENIUS Act to strengthen control over the rapidly growing stablecoin market in the U.S. The bill was publicly released on August 27, 2025 via an official statement by the Fed committee; it contains comprehensive measures to limit the impact of stablecoins on the financial market and ensure transparency.
According to the bill, issuers of stablecoins are required to strengthen their liquidity management (redemption) and related preparation assets and capital requirements within two business days. In particular, the GENIUS Act sets minimum standards for stablecoin liquidity and includes basic rules that simultaneously protect investors and maintain stability. Issuers must have the ability to settle quickly at redemption points, and must strengthen pre-emptive reserves and capital.
The bill also aims to minimize risks that could arise when issuing stablecoins; with its implementation, participants in financial markets will be required to comply with new rules. This differs from existing crypto coins and is expected to reduce liquidity risk of issuers and increase investor confidence.
Through this announcement, the Fed intends to strengthen transparency of U.S. financial market, clarify regulation on stablecoins, and enhance stability of the financial system. The GENIUS Act provides new standards for issuance and operation, allowing U.S. financial markets to develop more robustly.