What does the first Federal Crypto Law mean for You? (and the South)
The recent signing of the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act on July 18, 2025, by President Trump marks the first major federal cryptocurrency legislation in U.S. history. After a decade of hands-off approach to Cryptocurrencies, the Federal Government has finally decided to speak on the matter. The market has become a force too large to be ignored. What does this mean for citizens that still keep cash stuffed under their mattress? Should you be running to buy some of that hot new “internet money”? Let’s dig into it. None of this should be construed as constituting financial advice.
The whole law can be found here
A White House fact sheet of the law is available here
Major cryptocurrency exchange Coinbase wrote a concise article detailing the impact of the law here.
Coinbase did a good job summarizing the act, saying:
“TL;DR: The newly enacted GENIUS Act provides a federal legal framework for stablecoins like USDC, ensuring transparency, safety, and regulatory clarity for all users, from retail to institutional.”
Here are the highlights we think you’d like to know.
What does the law regulate?
The law focuses on a specific type of Cryptocurrency called a Stablecoin. Stablecoins are a type of digital money, or cryptocurrency, designed to keep a steady value unlike other cryptos like Bitcoin that can go up and down wildly in price. They work by being "pegged" or tied to something stable, such as the U.S. dollar, gold, or even a basket of assets, which means for every stablecoin issued, there's usually an equal amount of that real-world value held in reserve by a company. This makes them useful for everyday things like sending money quickly across borders without high fees, trading other cryptocurrencies without converting to cash, or even storing value safely during market ups and downs. For example, popular ones like USDT or USDC aim to always be worth about $1, helping people use crypto more like regular money.
What the law aims to do
The GENIUS Act is the first major federal rulebook just for stablecoins, bringing clear guidelines to a part of the crypto world that was mostly unregulated before. It works by requiring companies that issue stablecoins to back them fully with safe assets like U.S. dollars or Treasuries, follow strict rules against money laundering, make regular reports on their reserves, and give users priority if the company goes bankrupt, all while letting states handle oversight for smaller issuers. This will have a big impact by making stablecoins safer for everyday use, like quick payments or saving money, which could help more people join the digital economy without big risks. For instance, the law hopes to lower costs for sending money abroad and attract new jobs in tech hubs, while strengthening the U.S. dollar's role worldwide and encouraging innovation in finance.
The White House has laid out what their hope is for the piece of legislation. Their goal is to protect consumers in the digital market, ensure the U.S. dollar global reserve currency status, combat illicit activity in digital assets, and make America the “crypto capital of the world.” These are lofty goals. The crypto world is naturally averse to government oversight, but this law could help bring in more average Americans who are not as familiar with digital currencies and were not comfortable using them before. This law was crafted and supported by many key players in the crypto space, Coinbase being one of its biggest proponents.
What this means for folks in Alabama
The GENIUS Act aims to make stablecoins a safer tool for everyday money matters, like sending cash to family out of state without sky-high fees or getting quick access to funds in rural spots where banks are few and far between. With stronger rules now backing these digital dollars, it opens doors for our state to grow as a tech-friendly hub, creating jobs in places like Birmingham and Huntsville.
Again, none of this should be construed as constituting financial advice. If you have been reading all the talk around Bitcoin and Cryptocurrencies these past few years but have been too nervous to mess with it, this act signifies a new era of market stability. It is likely in your best interest to start dipping your toes in the water and looking into these new and exciting assets. Consider starting small with reputable platforms that support stablecoins, or join local Alabama groups focused on digital finance to learn more from others in the community. With these government safeguards in place, now is a great time to explore how crypto can fit into your financial future without the old uncertainties holding you back.
