Stablecoin Legislation Nears Completion by Mid-July 2025

US Treasury Secretary Janet Yellen announced that stablecoin legislation is expected to be finalized by mid-July 2025. This legislative push is centered on the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act , following its Senate passage.

The expected stablecoin legislation marks a significant step toward regulatory clarity, holding various implications for financial markets and digital assets as it awaits House approval.

Legislation Details

US Treasury Secretary Janet Yellen has been a vocal advocate for rapid implementation of stablecoin guidelines. She emphasizes systemic risk mitigation and alignment with the President’s agenda for swift House action. The GENIUS Act, approved by the Senate, aims to create a comprehensive framework for payment stablecoins.

“The administration urges the House to swiftly send a comprehensive stablecoin bill for final approval, ensuring robust oversight and stability in this emerging market.” – Janet Yellen

Market participants and subsidiaries of insured institutions are poised to become “Permitted Payment Stablecoin Issuers” under the new law. This change could recalibrate the competitive landscape for stablecoins and related financial products, affecting assets like USDT, USDC, and DAI significantly.

Anticipated legislation impact includes shifts in market liquidity and institutional funding pools. Regulatory assurances may lead to increased investment, reshaping the digital asset ecosystem. Key players like Senator Hagerty continue to champion responsible blockchain innovation under evolving guidelines. Senator Hagerty highlights the technological and financial imperatives for U.S. stablecoin leadership.

Insights suggest this legislation could bolster institutional inflows into stablecoins, raising on-chain liquidity and Total Value Locked (TVL) in DeFi markets. Historical precedents reinforce expectations, foreshadowing potential shifts in asset compliance, especially for digital currencies and financial protocols.