Stablecoins in the USA: what we know now and what the Trump administration says

1. What’s the Current Landscape?

• Regulatory Milestone

In July 2025, President Trump signed the GENIUS Act—the first law that lays down the federal rules for "payment stablecoins". The legislation calls for the complete reserve backing of U.S. dollars or short-term Treasurys, sets out monthly disclosures, and prohibits deceptive claims that stablecoins are either government-backed or that the federal reserve has given them (AP News).

• Clear Federal Framework

The Act delineates the conditions under which only the licensed issuers are allowed to issue stablecoin and harmonizes the oversight conducted by the state authorities and the federal watchdog. It also requires that consumers be well protected and the AML/KYC regulations are followed (Latham & Watkins, JD Supra).

• Systemic Risk Concerns Persist

Scientists point out that stablecoins are still at risk of “run risk” during market turmoil which may lead to the destabilization of the financial system. Researchers measure the chance of a major depegging incident at about one per three years (Investopedia).

• Market Momentum

With the regulations becoming effective, leading firms are getting ready for the U.S. market where they will be able to expand. The sector of stablecoin could be worth $2 trillion by 2028 according to the analysts (JD Supra).

2. What Is the Trump Administration Saying?

• Pro-Crypto Leadership

Trump utilized digital assets to position the United States as the future “crypto capital.” According to the administration, the coming of regulation is not going to stifle the growth but rather will power up the industry (Project Syndicate).

• Policy in Action

Besides the GENIUS Act, the administration removed the crypto enforcement units and put crypto-friendly regulators in charge, thus, sending a clear message of support to the industry (Washington Post, The Guardian).

• Ethical Scrutiny

The critics claim such conflicting interests, among other things, including the Trump-related company World Liberty Financial that supposedly launched the market with the USD1 stablecoin to demonstrate the example of self-dealing. The question that arises here regards self-dealing as well as regulatory capture

3. In Summary

Currently, the stablecoins in the U.S. are governed by the new GENIUS Act, stipulating that stablecoins should be fully backed by reserves, their issuers should be transparent and licensed. This has been very instrumental in enhancing trust among banks and financial institutions, a good number of which are already lining up to issue their own stablecoins.

On top of that, the Trump administration has been absolutely unambiguous in its support of the crypto industry. Their policies include but are not limited to e