In July 2025, the United States enacted the GENIUS Act, marking a pivotal moment as the nation’s first comprehensive federal regulatory framework for stablecoins. This legislation sets the stage for innovation in the banking and retail sectors, specifically related to digital currencies.
Editorial
The Finextra editorial team has carefully curated, developed, and refined this content based on its significance and relevance to our community of financial professionals.
This summer’s trending topic is the GENIUS Act, and Finextra presents diverse viewpoints on this legislation from our “Long Read” contributors. These experts offer fresh insights and lead discussions on key advancements within the stablecoin industry.
1. How Long Will It Take for the GENIUS Act to Streamline Business Operations and Reduce Costs?
Finextra’s Scott Hamilton offers an in-depth analysis of the GENIUS Act in his opinion piece, reporting directly from its origin. Hamilton explores the genesis and purpose of the Act, and anticipates upcoming actions from Congress and the Trump administration regarding stablecoin and broader cryptocurrency oversight.
“The GENIUS Act, an acronym for Guaranteeing Essential National Infrastructure in US-Stablecoins, embodies the US’s ambition to be a global leader in the promotion and regulation of stablecoins.”
Hamilton focuses on a critical question: how will the GENIUS Act influence financial services companies?
2. Bridging the Divide: A Hybrid Future for Stablecoins and Traditional Finance
Rhomaios Ram, from the Gillmore Centre of Financial Technology, examines emerging stablecoin models that are reshaping traditional finance and creating new avenues in both DeFi (Decentralized Finance) and TradFi (Traditional Finance) domains.
“With stablecoins experiencing significant growth – accounting for almost half of cross-border crypto transactions and reaching a total outstanding supply exceeding $250 billion by June 2025 – a crucial question arises: how will they integrate with traditional finance and established banking institutions?”
Ram provides actionable insights, addresses challenges, and outlines strategies to reconcile stablecoin decentralization with enhanced compliance and ongoing innovation.
3. Traditional Banking vs. Crypto Banks: The Path Forward
Franz Bergmueller from AMINA Bank explains how the GENIUS Act has fostered the emergence of “crypto banks.” Cryptocurrencies are now perceived as more reliable and secure, contrasting with their previous image as a volatile and rapidly evolving entity within the financial industry.
“Legislative initiatives like the GENIUS Act in the U.S. indicate a growing trend towards regulated, institutional-grade crypto infrastructure. Stablecoins are currently employed for real-time settlements. ETFs (Exchange Traded Funds) are opening the door for mainstream investors, and crypto-native enterprises are establishing a parallel economy that doesn’t readily fit within traditional banking structures.”
Bergmueller analyzes the diverging priorities and capabilities of traditional banking and neobanks and delves into the origins of the crypto bank, offering a spectrum of digital assets from a licensed banking platform, along with conventional banking services.
4. Is the UK Underestimating the Potential of Stablecoins and Overemphasizing the Risks?
Chris Holmes, a member of the House of Lords, offers a UK perspective, drawing parallels between the GENIUS Act and potential opportunities for the UK financial sector in his recent article for The Westminster Series.
“Regulatory changes related to digital finance can create clarity and predictability, protecting consumers and promoting innovation. It’s noteworthy to observe a Labour government embracing the notion that regulation hinders innovation and growth, a point I have consistently challenged. Governments and regulators face the task of balancing innovation and stability while safeguarding consumers and the broader financial system. This calls for effective regulation, not less.”
Holmes reflects on his involvement with the Financial Services and Markets Bill and its progress. He reaffirms his conviction that the UK’s ambition to become a digital asset hub will endure.
5. Stablecoin Summer: When Financial Services Became Crypto-Curious
Madhvi Sonia, Head of Content at Finextra, recaps the key events of “stablecoin summer” in her article, describing how stablecoins gained prominence as the standout trend of the season.
“While stablecoins are gaining momentum, questions persist regarding privacy, interoperability, and the possibility of centralization within systems designed for decentralization.”
Sonia highlights the international and domestic repercussions of the new legislation, impacting leading banks, retailers, and global regulatory bodies.