US Congress edges toward first-ever federal framework for digital assets

With just over two weeks remaining in its 2025 legislative session, the US Congress is closer than ever to establishing a regulatory framework for digital assets.

Two major developments are driving that shift: the rollout of the GENIUS Act – the first federal law governing US dollar–backed stablecoins – and ongoing Senate negotiations over crypto market structure legislation regulating the rest of the industry.

Together, these efforts could resolve years of jurisdictional uncertainty between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), create standards for stablecoin issuance and provide long-term guidance for crypto markets.

GENIUS Act implementation

Signed into law in July, the GENIUS Act has now entered implementation. Federal regulators – including the US Treasury Department, Federal Reserve, Office of the Comptroller of the Currency (OCC), and Federal Deposit Insurance Corporation (FDIC) – have begun drafting initial guidance, with additional rulemaking slated for 2026.

The law establishes the first national framework for fiat-backed stablecoins. Issuers must maintain 100 percent reserves in cash or short-term Treasuries and publish monthly disclosures detailing those reserves.

The Act also bans misleading marketing – including any implication of federal backing or deposit insurance – and subjects issuers to bank-style standards for solvency, cybersecurity, risk management, and liquidity. Compliance with AML, sanctions, and KYC obligations is mandatory, and issuers must retain the ability to seize, freeze, or burn tokens under lawful orders.

In the event of an insolvency, stablecoin holders receive priority claims above other creditors.

A central feature of the Act is its uniform federal treatment. For years, issuers operated under a patchwork of state money-transmitter rules that pushed many firms offshore. The GENIUS Act resolves that inconsistency and expressly states that fiat-backed stablecoins are neither