In July 2025, the US passed the GENIUS Act, making it the first federal regulatory system for stablecoins, and laying down groundwork for stablecoin innovation in the banking and retail sectors.
Editorial
This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.
As a hot topic of the summer, Finexta has collected the diverse perspectives on the new Act from our long read contributors, who have approached the new development in the industry with fresh ideas and led the conversation on key innovations in the sector.
1. How long before the GENIUS Act helps your business run faster and cheaper?
Finextra’s own Scott Hamilton tells you everything you need to know about the GENIUS Act in his op-ed, reporting from the place of is nascence. Hamilton details the journey and purpose of the Act, and anticipates the next moves from Congress and the Trump administration for stablecoin and crypto regulation.
“The GENIUS Act, the initials of which stand for Guaranteeing Essential National Infrastructure in US-Stablecoins, represents the culmination of US efforts to take top prize in the global stablecoin promotion and regulation stakes.”
Hamilton zeroes in on vital information needed from the development – how will the GENIUS Act impact financial services companies?
2. Bridging the divide: The hybrid future of stablecoins and traditional finance
The Gillmore Centre of Financial Technology’s Rhomaios Ram wrote on new models of stablecoin that are disrupting traditional finance practices, and forging new paths in DeFi and TradFi circles.
“As stablecoins continue their remarkable growth – with transaction volumes accounting for nearly half of cross-border crypto flows and the total outstanding supply crossing $250 billion by June 2025 – a key question emerges: how will they interact with traditional finance (TradFi) and the established banking sector?”
Ram provided clear action points, challenges, and strategies to overcome stablecoin decentralisation with further compliance and innovation.
3. Traditional banking vs. crypto banks: The road ahead
AMINA Bank’s Franz Bergmueller explained the emergence of the “crypto bank” spurred by the GENIUS Act, now that cryptocurrencies can be considered more reliable and secure, whereas in the past crypto was the financial industry’s raucous little toddler, at times predictable, at times volatile, always growing faster than you think.
“Legislative efforts like the GENIUS Act in the U.S. point to a growing momentum toward regulated, institutional-grade crypto infrastructure. Stablecoins are already used for real-time settlements. ETFs are opening the door to mainstream investors, and crypto native businesses are building a parallel economy that doesn’t fit neatly into traditional banking boxes.”
Bergmueller compares where traditional banking and neobanks diverge, both in priorities and in capabilities, and expands on the origins of the crypto bank, that will provide a suite of digital assets from a licensed banking platform, alongside traditional banking services.
4. Is the UK ‘overestimating the risk and underestimating the opportunity’ of stablecoins?
Bringing in a UK perspective, Chris Holmes from the House of Lords parallels the GENIUS Act with opportunities for the UK financial sector in his recent article for The Westminster Series.
“Regulatory reform connected to digital finance can offer clarity and certainty that protects consumers and encourages innovation. In many ways, it is extraordinary to hear a Labour government adopting the myth of regulation as a barrier to innovation and growth, something I have long argued against. The government and regulators are faced with the challenge of balancing innovation and stability while safeguarding consumers and the wider financial system, but that is an argument for effective regulation, not for less regulation.”
Holmes traces back his introduction to the Financial Services and Markets Bill and reflects on how far the act has come. Looking to the future, Holmes reinforces his belief that the UK vision to become a digital asset hub will persist.
5. Stablecoin summer: The summer financial services turned crypto-curious
Finextra’s head of content, Madhvi Sonia, summarised the highlights of ‘stablecoin summer’ in her article on how stablecoins became the new it-girl of the season.
“While stablecoins are gaining traction, questions remain around privacy, interoperability, and the potential for centralisation in systems designed to be decentralised.”
Sonia details the impact from the new law internationally and domestically, that has made waves for leading banks, retailers, and global regulators.
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