GENIUS Act Signed — But Not Yet Effective: Let’s Clear the Air

On July 18, 2025, the much-anticipated GENIUSAct (S.1582) was signed into law by President Trump — a landmark federal framework for payment stablecoins in the U.S.

Since then, I’ve seen many well-meaning voices — even from within the crypto and fintech space — assume that the law is now “live” or that states can already authorize GENIUS-compliant issuance under their existing frameworks.

Let’s clarify that: they cannot.

🔹 The GENIUS Act is not immediately effective

Section 20 clearly states the Act becomes enforceable either:

✔️ 18 months from enactment (Jan 18, 2027), or

✔️ 120 days after finalization of federal #regulations — whichever comes first.

🔹 States cannot anticipate that date

Even states like Wyoming, NewYork, California, or Texas — which already allow regulated stablecoin issuance — cannot “activate” GENIUS authority early.

Until the Act is effective, no issuer can claim GENIUS-compliance, even under the $10B cap.

Yes, a dual-track regime exists — allowing smaller issuers to opt for state supervision, but only after their state receives formal certification from the Stablecoin Certification Review Committee and the Act is in force.

States may continue regulating stablecoin issuance under their own laws, but that’s not the same as a GENIUS-compliant framework — and claiming so could expose issuers to regulatory misalignment or even federal enforcement risks.

📌 Bottom line: Don’t confuse early state innovation with early federal effectiveness.

GENIUS will reshape stablecoin markets — but on federal terms, and on a federal timeline.

🔗 https://www.whitehouse.gov/fact-sheets/2025/07/fact-sheet-president-donald-j-trump-signs-genius-act-into-law