What the GENIUS Act Means for Stablecoins

On July 18, 2025, President Trump signed the GENIUS Act into law, marking a major milestone for the U.S. digital asset ecosystem. For the first time, there is a federal framework that governs how payment stablecoins are issued, secured, and monitored. 

But this isn’t just a policy shift. It’s a wake-up call—and a massive opportunity—for stablecoin issuers and crypto platforms to build trust through strong cybersecurity and compliance. Let me explain how, including how you can achieve that trust. 

What’s in the GENIUS Act? 

The new law requires stablecoin issuers and other related organizations to meet three key requirements: 

1. 1:1 Reserves: Stablecoins must be fully backed by U.S. dollars or highly liquid assets. 
   
   
2. Ongoing Disclosure and Oversight: Issuers must provide monthly transparency reports and undergo independent reviews.
    
3. Regulatory Controls: The Act brings crypto firms under existing anti-money laundering (AML), sanctions, and risk management obligations. 

While the new mandates for financial disclosures and reserves may get the headlines, cybersecurity is also quietly becoming one of the most critical areas of focus, which means those in the industry must respond.  

Who is Affected by the GENIUS Act’s Regulations? 

It’s important to state that this legislation doesn’t just apply to a few big-name players. If you’re part of the digital asset economy, the ripple effects will reach you. Companies that need to prepare now include: 

• Stablecoin Issuers 
  Whether you're already operating or preparing to enter the market, you'll need to demonstrate strong internal security controls and transparent, well-managed infrastructure. 

• Crypto Wallet and Custody Providers 
  As these platforms are responsible for storing, transmitting, and securing assets, they’ll be expected to meet the same levels of assurance as traditional financial institutions. 

• Blockchain-Based Payment Platforms 
  If your technology helps move stablecoins across the ecosystem, regulators will want to know how you’re managing risk and maintaining operational continuity. 

• Fintechs Integrating Stablecoins 
  Any application that facilitates the use of stablecoins—whether for payments, remittances, or rewards—will need to validate the cybersecurity of their systems and partners. 

• Cloud Providers and Infrastructure Vendors 
  If your services support regulated digital asset operations, your role in securing the environment matters too. 

Under the GENIUS Act, all these organizations will need to prove their responsible governance, operational resilience, and effective safeguards to protect users, and Schellman can help accomplish that. 

How Schellman Can Help with GENIUS Act Compliance 

Here, we leverage our broad expertise and significant experience to evaluate, test, and validate the cybersecurity controls that power today’s most innovative companies. And, thanks to the GENIUS Act, that’s no longer a nice-to-have for the world of digital assets—it’s actually mission-critical. 

Still, it’s important to find the solutions that work best for your needs, and at Schellman, we can help in many different ways. Here’s how we can support crypto and stablecoin organizations under this new regulatory lens: 

• Cybersecurity Assessments 
  We provide readiness and gap assessments aligned to leading frameworks like ISO 27001, NIST, and SOC 2, which can help demonstrate your commitment to strong cyber hygiene—something regulators and customers will both expect. 

• Third-Party Risk and Vendor Management 
  The Act underscores the need for secure, well-managed infrastructure—we can analyze how well your systems, vendors, and cloud environments hold up under scrutiny. 

• Incident Response and Operational Resilience Reviews 
  As stablecoin platforms scale, operational continuity and breach preparedness are no longer theoretical concerns, and our assessments help organizations mature these capabilities before regulators or users start asking questions. 

• AI and Responsible Innovation Frameworks 
  If your stablecoin ecosystem includes AI for risk scoring, transaction monitoring, or user behavior analytics, we can help evaluate those systems for transparency, security, and bias control. 

• Continuous Compliance Strategy 
  Given that regulation in this space is just getting started, we can assist your teams in implementing governance and assessment strategies that are built to grow alongside the evolving landscape. 

Responding to the New GENIUS Act Legislation 

The GENIUS Act signals that digital asset oversight is here to stay. That means trust will be measured not just by what’s promised, but by what’s proven.  

The digital assets industry doesn’t need to just respond with such proof now; it also needs to start thinking ahead. Through our cybersecurity assessments, Schellman can help you show regulators, partners, and users that you’re serious about security, privacy, and resilience—at present and into the future.