U.S. Stablecoin Law Spurs Bank Interest, But Challenges Remain
Major U.S. banks, including Bank of America and Fiserv, are preparing to explore their own dollar-backed cryptocurrency tokens following the introduction of the country’s first federal rules for stablecoins.
On 18 July, U.S. President Donald Trump signed the GENIUS Act into law, establishing guidelines for cryptocurrency tokens pegged to the U.S. dollar. The legislation aims to make stablecoins — designed to maintain a fixed value, typically at a 1:1 ratio with the dollar — a legitimate tool for everyday payments and cross-border transactions.
Surge in Interest, But No Quick Rollout
Stablecoins have grown rapidly in recent years, especially among cryptocurrency traders moving funds between tokens such as bitcoin and ether. They offer near-instant payment settlement compared with traditional banking systems, where transactions can take days, particularly across borders.
Companies ranging from Walmart to Amazon are reportedly considering their own stablecoin strategies. However, experts caution that launching a stablecoin involves complex technical, regulatory and strategic decisions, meaning the new law will not trigger an immediate wave of releases.
Firms must decide whether to create their own token or integrate existing ones, such as Circle’s USDC, into their operations. Usage could range from customer-facing payment options to internal cross-border transfers.
“The intended use is going to matter a lot,” said Stephen Aschettino, a partner at Steptoe. “Is this about customer engagement, or about building a stablecoin that is more widely adopted?”
U.S. Banks Compliance and Regulatory Hurdles
Under the GENIUS Act, all issuers must comply with anti-money laundering and “know your customer” (KYC) rules. This could pose challenges for non-bank entities lacking established compliance systems.
U.S. banks, however, already have robust risk management and customer verification procedures in place. Bank of America, Citigroup, and JPMorgan Chase have all indicated interest in issuing stablecoins, though each must consider how such assets would affect liquidity and capital requirements under current banking rules.
“The GENIUS Act is great, but banks still need to assess the risk weight of stablecoins on their balance sheets,” said Julia Demidova, head of digital currencies at FIS.
Blockchain Choices: Public or Private?
Stablecoins are issued on blockchains — digital ledgers that record transactions. Popular public networks include Ethereum and Solana, where all transactions are visible. However, U.S. banks may prefer private, or “permissioned,” blockchains that offer greater control and governance.
Others see value in public networks with proven scalability and adoption. “We’ve seen a lot of interest in existing blockchains that have been battle-tested at scale,” said Nassim Eddequiouaq, CEO of Bastion.
Phased Implementation Ahead
Although the GENIUS Act is now law, its full implementation could take years. U.S. banking regulators are expected to develop detailed rules in the interim. The Office of the Comptroller of the Currency will outline risk management and compliance standards, while the Treasury will address the treatment of foreign stablecoin regimes under the new framework.
“These things are going to have to phase in,” said Aschettino, noting that stablecoin adoption will depend on regulatory clarity and operational readiness.
with inputs from Reuters
