Reporting from Washington, I've confirmed President Trump just signed the GENIUS Act – the first federal crypto law in U.S. history. If you trade stablecoins or hold ETH, this seismic shift reshapes your crypto strategy overnight. Simultaneously, Moscow's stock exchange prepares to launch Ethereum futures in August, signaling global regulatory momentum.
GENIUS Act Signed: 3 Ways It Reshapes Crypto
Breaking Down the GENIUS Act
Having covered crypto regulation since the 2022 Terra collapse, I've analyzed the 68-page bill's core provisions taking effect in 90 days:
- Reserve Requirements: Stablecoin issuers must back tokens 1:1 with cash/T-bills and publish monthly reserve reports
- Issuer Licensing: Banks and state-approved entities (under $10B issuance) can issue stablecoins, with foreign issuers requiring U.S. compliance tech
- Consumer Safeguards: Mandatory redemption guarantees and bankruptcy protection for holders
"This opens the floodgates for institutional capital," said Christian Catalini, MIT Cryptoeconomics Lab founder. "Stablecoins will compete on utility – not trust".
Market Impact and Reactions
Within hours of signing:
| Asset | Price Change | Catalyst |
|---|---|---|
| USDC (Circle) | +7.2% | Compliance readiness advantage |
| Ethereum (ETH) | +5.8% | Moscow Exchange futures + U.S. momentum |
Industry analysts predict:
- Banks like JPMorgan may launch stablecoins within 6 months
- Stablecoin use in payroll and retail payments to grow 300% by 2026
- Russia's Ethereum futures (tracking BlackRock's ETF) accelerating institutional ETH demand
Political Firestorm
The bill passed 68-30 in the Senate but faced fierce Democratic opposition:
- Supporters: Sen. Bill Hagerty (R-TN) called it "critical for U.S. financial leadership" against China's digital yuan
- Critics: Sen. Elizabeth Warren (D-MA) warned it enables "Trump's $TRUMP coin conflicts," citing his stake in World Liberty Financial
Global Domino Effect
As the U.S. sets standards, Moscow Exchange's August Ethereum futures – tracking BlackRock's iShares Ethereum Trust – exemplify crypto's institutionalization. The contracts, paired with new futures on U.S. Treasury bonds, let Russian investors bet on ETH and U.S. debt simultaneously.
Meanwhile, the GENIUS Act aligns closely with:
- Singapore’s reserve rules for stablecoins
- EU’s MiCA compliance standards
- UK’s phased crypto integration
What’s Next for Crypto?
Three imminent developments:
- SEC expected to approve 3a7-eligible tokenized funds using stablecoins
- House vote next week on anti-CBDC bill
- Moscow Exchange expanding crypto derivatives to include USDT futures
FAQs: What Investors Ask
Q: Can non-U.S. citizens buy GENIUS-compliant stablecoins?
A: Yes, but issuers must freeze transactions if requested by U.S. authorities.
Q: How does Moscow's ETH futures work?
A: Contracts track BlackRock's ETF price, settled in rubles for qualified investors.
Q: Does this help Bitcoin ETF approvals?
A> Indirectly – by establishing crypto commodity definitions in parallel "CLARITY Act".
