Agencies stall as deadline passes quietly
On July 18, 2025, the one-year anniversary of the GENIUS Act’s signing by President Donald Trump, federal agencies let a key deadline slip by without delivering final stablecoin regulations.
The silence is notable given the rapid expansion of the stablecoin market, which Federal Reserve researchers pegged at $317 billion in capitalization as of April 6, up more than 50% since early 2025. On paper, the GENIUS Act was supposed to provide regulatory certainty and consumer protection; in practice, the sector remains in a holding pattern.
Only ten proposed rules were published by July 18, 2025, with no final regulations issued by the Treasury, OCC, FDIC, or Federal Reserve Board.
Ten proposals, but no final word
In the year since enactment, federal agencies issued ten notices of proposed rulemaking (NPRMs), addressing topics from reserve management to anti-money laundering compliance. The Treasury alone put forward four proposals, including standards for state regulatory regime equivalence and requirements for foreign issuers wishing to operate in the US. The OCC followed with two NPRMs focused on chartering and supervising payment stablecoin issuers at a national level. Meanwhile, the FDIC contributed one proposal aimed at setting operational standards for FDIC-supervised institutions issuing stablecoins.
Yet none of these proposals have been finalized or implemented.
According to cointelegraph.com, this leaves both regulators and issuers facing a compressed window for compliance: while rules are still pending, the law’s effective date remains January 18, 2027. This means that unless agencies accelerate their process, firms may be forced to adapt to sweeping new requirements with little time to prepare.
Stablecoin giants operate amid regulatory limbo
Despite regulatory uncertainty, market leaders like Tether (USDT) and Circle’s USD Coin (USDC) continue to dominate. As of mid-July 2025, USDT accounted for roughly $184 billion in circulating supply while USDC stood at $73 billion—together making up over 80% of all US dollar-backed stablecoins. The lack of finalized rules has not slowed their growth: transaction volumes on Ethereum alone have risen by 50% since early this year.
On July 16, Visa launched an enterprise platform giving banks and fintechs access to stablecoin storage and redemption services through a single integrated environment. By April 2025, Visa’s stablecoin settlement pilot had reached a $7 billion annualized run rate across nine blockchains—a figure up 50% from just three months prior.
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Federal agencies outpaced by market growth
The GENIUS Act established strict requirements: one-for-one liquid reserves backing each stablecoin unit, monthly reserve disclosures, and guaranteed redemption rights for holders. However, with enforcement measures still only proposed—not finalized—issuers are left interpreting draft guidelines as best they can. This disconnect between legislative intent and regulatory follow-through has created an uncertain environment for both incumbents and potential new entrants.
For now, it is unclear whether agencies will meet future milestones or if further delays are ahead. What is certain is that every month without clarity increases operational risk for firms managing billions in customer assets—and compresses their timeline for compliance as January 18, 2027 approaches.
GENIUS Act’s promise remains unfulfilled
The promise of a unified federal framework for stablecoins remains just that: a promise. While regulators deliberate over technical details—from reserve audits to cross-border registration—market participants must navigate a patchwork landscape with only draft rules as guidance. The contrast between surging adoption and regulatory inertia could not be starker.
One rhetorical question hangs over Washington: can agencies catch up before enforcement kicks in? For now, all eyes remain on forthcoming rulemakings—and on whether Congress or new leadership will intervene before January 2027 brings deadlines into sharp focus.
Developments to follow
If US regulators fail to finalize stablecoin rules before the GENIUS Act’s effective date of January 18, 2027, it would leave issuers and agencies with a compressed window to implement compliance measures, as the missed July 18, 2025 deadline for final regulations does not delay the law’s enforcement.
