U.S. Banks Rush To Catch Up On Crypto As GENIUS Act Ushers In Crypto

Key Points

1. The GENIUS Act was signed into law by President Donald Trump on July 18, 2025, creating the first federal regulatory framework for stablecoins and digital assets.

2. Major banks like JPMorgan Chase and Bank of America are developing crypto-related products, such as crypto-collateralized loans, signaling a shift in traditional finance toward digital assets.

3. The bill requires stablecoin issuers to maintain 100% reserve backing and emphasizes transparency, audits, and federal compliance.

4. Congress is also debating the CLARITY Act, which aims to clarify regulatory roles for the SEC and CFTC in overseeing digital assets.

5. Stablecoin transaction volume has grown significantly, with centralized exchanges accounting for a large portion of activity, while banks face challenges in competing with established crypto service providers.