GENIUS Act, MiCA & Reserve Rules

The world of stablecoins is undergoing a regulatory transformation.

With the rise of digital finance and the global adoption of blockchain, governments have responded by introducing new frameworks to govern how stablecoins operate.

This guide breaks down everything you need to know about the latest developments in the U.S. and Europe.

It will cover the GENIUS Act, the EU’s MiCA regulation, stablecoin reserve requirements, and what these changes mean for users and issuers.

Post Summary

What is the GENIUS Act Stablecoin Bill?

In June 2025, the U.S. Senate passed the GENIUS Act, a landmark piece of legislation aimed at establishing a clear regulatory structure for stablecoins.

Officially known as the Guarding the Economy and National Interests Using Stablecoins Act, this bill aims to:

Ensure all U.S.-issued payment stablecoins are backed 1:1 by liquid assets
Define the requirements for permitted stablecoin issuers
Set up federal and state-level licensing pathways

This stablecoin bill passed the Senate with bipartisan support in a 68–30 vote on June 17, 2025, marking a significant step forward in establishing consumer protection and institutional confidence in the stablecoin market

STABLE Act vs GENIUS Act: Key Differences

While the STABLE Act (introduced earlier in the 2020s) focused on limiting stablecoin issuance to insured depository institutions, the GENIUS Act offers a more flexible approach.

Here’s how they compare:

This comparison highlights why the GENIUS Act is considered more innovation-friendly while still emphasising strong consumer protections.

Who Can Issue Stablecoins Under the New U.S. Law?

Under the GENIUS Act, stablecoin issuers must meet strict regulatory requirements, including:

Applying for a “Permitted Stablecoin Issuer” license
Meeting the stablecoin reserves 1:1 requirement, ensuring every dollar of stablecoin is backed by equivalent liquid reserves
Submitting to annual audits (as part of the stablecoin issuer audit requirement)
Disclosing reserve holdings monthly

Importantly, both banks and certain non-bank entities can now apply for an issuance license, giving fintechs and Web3-native startups a pathway to legitimacy.

Stablecoin Regulation US 2025: Key Takeaways

In 2025, the U.S. stablecoin landscape is defined by the GENIUS Act, which:

Recognizes stablecoins as legal payment instruments
Offers dual licensing (federal and state-level pathways)
Prioritizes transparency via stablecoin monthly reserves disclosure
Mandates 1:1 liquid asset backing for all payment stablecoins

These measures aim to reduce systemic risk and prevent runs, while keeping the U.S. competitive in global digital finance.

To truly understand the global impact of stablecoin regulation, it’s important to look beyond the U.S. and examine how other major regions are approaching it in the section below.

MiCA and Stablecoin Regulation in the EU

In contrast, the European Union rolled out its Markets in Crypto-Assets (MiCA) regulation.

MiCA treats stablecoins (or “e-money tokens”) as a subset of regulated financial instruments. Some of its provisions include:

Requiring stablecoin issuers to be registered and headquartered in the EU
Limiting daily transaction volumes for non-Euro denominated stablecoins
Mandating capital and liquidity buffers

In summary, MiCA is strict in scope, but it offers clarity and a unified regulatory environment across all EU member states.

Here’s a quick comparison between U.S. and EU approaches:

Feature	GENIUS Act (US)	MiCA (EU)
Jurisdictional Scope	National + State	Pan-European
Issuer Eligibility	Banks + licensed non-banks	EU-registered entities only
Reserve Disclosure	Monthly	Ongoing + audited
Currency Scope	Open (any fiat-backed coin)	Euro focus; limits on USD use

Interestingly, this divergence may lead to arbitrage opportunities for issuers and developers who operate globally.

What These Changes Mean for Users and Builders

The new regulations in both the U.S. and EU aim to make stablecoins safer and more reliable, but they also introduce new compliance burdens.

For users, this means:

More confidence that stablecoins are truly backed
Increased transparency around issuer practices
Potential for fewer “degen” stablecoins with no real backing

For builders, it means:

A clear legal path for stablecoin innovation
The need to navigate licensing and disclosure requirements
Opportunities to differentiate based on compliance and trust

Want to Explore Trading With Regulated Assets?

If stablecoin regulations and global financial policy changes spark your interest in digital finance, one of the easiest ways to start learning and earning is by exploring platforms that offer access to financial markets in a simple, user-friendly way.

Olymp Trade is a beginner-friendly platform where you can trade currency pairs, cryptocurrencies, and even stablecoins through Fixed Time Trading or Forex.

It’s designed to help new users understand market movements, especially now that stablecoin-backed instruments are gaining more regulatory clarity.

Why it stands out:

No prior experience needed
Free demo account to practice
Works well for users interested in stablecoins and digital finance trends

If you’re curious about how price movements of regulated assets work or you want to try trading with minimal risk, check out Olymp Trade here and read our review.

Conclusion

2025 is the year stablecoins went legit. With the GENIUS Act stablecoin framework in the U.S. and MiCA in the EU, the crypto world is no longer operating in a regulatory vacuum.

Whether you’re a user, developer, or investor, understanding these laws is key to navigating the next era of digital money.

Expect more changes ahead, but one thing is clear: regulation is here to stay, and stablecoins are stronger for it.

PS: Curious how stablecoin news and global policies impact price movement in real-time?

You can test it out on a demo account with Olymp Trade, and even earn if your prediction is right.