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Disclosure: The ideas and opinions expressed here are only for the author and do not replace the ideas and ideas of the editorial of Crypto.
If you are worried about what the Genius Act can inadvertently do for debt lending, what not. Stablecoins are the cool workheors of Crypto. They are not attractive, they swing 30% a day, and they rarely make headlines – until anything goes. But behind the curtain, they will do everything major tasks in decentralized finance.
Summary
- StableCoins are the backbone of crypto, whirlpool boring, trading, or liquidity, stabelioncos negatively in terms of every care, quietly strengthens the ecosystem.
- The Genius Act is a breechesro: passed in July 2025, it creates the first US federal framwork for fiat-supported stabecoin, licensing, reserve, AML/KYC and installation of audit requirements.
- It benefits DEFI more than this, making Stabelin more transparent and reliable, the law strengthens the DEFI linding infrastructure and increases the institutional conference without controlling the protocol directly.
- Regulation Crypto is not the end of freedom; This is the foundation of development. The Genius Act helps the DEFI scale, flexible, complaint with the rail that can adopt the actual water and the quantity.
Need to borrow against your crypto holdings? You are receiving loans in a stablecoin. Providing liquidity? You are pairing with a stablecoin. Token exchange -big? You are potentially routing through a stablecoin pool.
StableCoins Naver were particularly “hot” or “trendy”, more atribution for other verticals along with the market, who promised endless returns or created generations overnight. But the truth of this case is that they are probably “hottest” which are currently on the market. I show you why.
Currently, StableCoin market cap exceeds $ 273 billion. Major companies of the world, such as Paple, Walmart and Amazon, are engaged with Stabecrims, some USD Coin (USDC) issuing Circle’s IPO, with thinking about IPOs, live people in June were so successful in June that it inspired other crypto companies to public. Even the US President’s DEFI company, World Liberty Financial, has a Stabelcoin called USD1.
Over the years, Stabecrim has promoted crypto activation, but they are legally present in the gray field. So far.
Enter the genius act
Passed by Congress and signed by President Trump on July 17, 2025, the guide and estabing national innovation for the US Stabelosine Act is the first federal law in the user to create a formal re -recurrence stabechoin.
At its core, the Genius Act introduces a legal basis for Stabecrimons that is fully competent 1: 1: 1: 1: 1, and is licensed under a new federal “Genius License” or a new federal “Genius License” or a new federal “Genius License” or a new federal “Genius license” or a new federal “Genius license” or a new federal “Genius License”.
It determines clear, applied rules for reserved requirements, anti-mani laundering processes, and KYC compliance as well as public revelations and regular audit of reserves. Trump called this law a “new, exciting frontier” for Crypto. Crypto Builders agree, but not the way anyone can think.
DED is not so serious for landing land
I have seen the comments and ideas that are not very excited about this legal development. And I think why: Regulation does not sound a lot ‘Crypto Land-Y’. And one of the most popular regions of Crypto, what this acquisition means for Defa Lending is a lot of disappointment about it.
Here’s the matter: The Genius Act does not regulate DEFI, at least straight, ie. But it does not handle questions about cool infrastructure near every major DEFI Borrowing Protocol.
DEFI borrowed protocol depended on stabeloin for collateral, liquidity and disposal. If these stabelin are reliable, the entire system becomes unstable. By determining strict requirements for stores, audit and compliance, the Genius Act gives DEFI access to more secure and transparent types of stabilin.
In practice, it means strong collateral quality in markets, better safety for users, in the event of an issue failure, and in a cleiler legal status, DEFI attracts more to institutions and serious builders. It does not judge systemic risk – it helps DEFI mature in a more truth and scalable option for traditional finance.
Everything in the throat is not sollog. It does not add algorithm or crypto-supported stabilcoin. It leaves the room around words like “timely redemption”. And it does not directly give how DEFI protocols use these assets. But this is a big step in the right direction. And this is more than the industry till 17 July.
Bottom line
The Genius Act is more than regulating stablecoins; It also gives groundwork for more stable, reliable and scalable Defense ecosystem. By giving legal clarity and implementing the standards to fiat-supported stabechoids, it supports innovation without smoothing it. Users receive safe, more reliable equipment. And the infrastructure that is open finance gets a lot of upgrade.
The defi defi remains, but now more flexible, under it with more complaints. This makes the entire space more strong, not only for years and builders, but for the next wait of users entering web 3.
Because here is true: Freedom in finance only matters when it is something stable. The Genius Act does not restore – it helps that it does not fall under its weight. It is not about limiting innovation. It is about to ensure that it is found that the fact shows real volume, real users, or real protection.
