A digital asset
investment fund
Viska is an alternative investment fund based in Iceland that invests in digital assets.
Viska is an alternative investment fund based in Iceland that invests in digital assets.
For years, the crypto industry has operated under heavy scrutiny, often labeled by critics as the “Wild West” of finance. Headlines painted it as unregulated, chaotic, and dominated by bad actors. That narrative created uncertainty for everyday investors, casting doubt on whether crypto was a safe or legitimate part of the financial system.
The passage of the GENIUS Act marks a turning point. For the first time, the U.S. government has created a federal legal framework that explicitly defines how stablecoins, digital tokens pegged to the U.S. dollar, can operate. The law requires issuers to maintain 100% reserves in high-quality liquid assets, provide monthly attestations, and comply with anti-money laundering rules.
According to data from Atemis and A16z, approximately 1.1% of the USD supply is tokenized as stablecoins (led by Tether).
Circle’s USDC is fully backed by cash and short-term U.S. Treasuries, making it one of the most transparent and regulated stablecoins in circulation as of now.
With legal clarity now established, traditional financial institutions are wasting no time. Major U.S. banks and payment networks are exploring stablecoin strategies. Mastercard described the GENIUS Act as a turning point and has indicated it will continue expanding its crypto integration efforts. U.S. banks are also preparing to launch their own compliant stablecoins, signaling that traditional finance is now taking digital dollars seriously.
Mastercard recently commented on the GENIUS act and mentioned how it was ‘‘opening the door to a future filled with more innovation’ . You can read the full statement here.
Crypto-native firms are reacting just as quickly. Companies like Circle, Coinbase, and Tether have publicly expressed support for the GENIUS act, and many attended the White House signing ceremony. Some executives have already suggested that the market for U.S. dollar–backed stablecoins could expand significantly under the new framework.
During a Bloomberg Live report, they discussed many of the banks that were considering stablecoins. In this moment, we can now see that stablecoins are now mainstream.
The law will now move into its rulemaking phase. Regulators are expected to begin drafting the implementation details, a process that should take up to a year. In the meantime, both banks and crypto firms will likely begin positioning themselves for first-mover advantage. How the Federal Reserve responds, and whether it opens access to stablecoin issuers, could become one of the most important battles in digital finance going forward.
The central governing body is the Federal Reserve Board of Governors, located in Washington, D.C.
The GENIUS Act also sets the stage for additional legislation. Related bills, such as the CLARITY Act and anti-CBDC proposals, are currently under discussion in Congress. These measures will heavily influence how the broader digital asset ecosystem is governed in the United States.
The GENIUS Act is going to change how people approach stablecoins, treating them as a legitimate part of the financial system. With regulatory guardrails now in place, the next phase will determine who leads the race to issue the dominant digital dollar. Whether it is banks, crypto firms, or tech platforms, the rules of the road have finally been written. What happens next will define the future of digital assets in the financial sector at large.
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