CryptoReflexions#22 - The USA Is Building Its Crypto Regulatory Framework.
Hello everyone,
The United States has laid, in the span of a few months, the foundations of a comprehensive regulatory framework for crypto-assets. The GENIUS Act has become law. The CLARITY Act has passed the House of Representatives and is progressing (with difficulty) in the Senate. Wyoming has launched the first stablecoin issued by a US state. And the New York regulator had, as early as 2022, paved the way with its requirements on dollar-backed stablecoins.
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What Happened: An Accelerated Timeline
To understand where the United States stands, we need to trace back through the four texts that today structure the American crypto regulatory landscape. I review them in chronological order of their adoption or publication, before offering a cross-analysis and a look at what this implies for us, in Belgium and in Europe.
1. The NYDFS Guidance on Dollar-Backed Stablecoins (June 8, 2022)
The New York Department of Financial Services (NYDFS) was the first American state regulator to publish specific guidelines for dollar-backed stablecoins. This Guidance of June 8, 2022 is addressed to entities regulated by the NYDFS, namely holders of a BitLicense or limited purpose trust companies chartered under New York banking law.
The context is important: the publication came just weeks after the collapse of TerraUSD (UST) in May 2022, an algorithmic stablecoin whose loss of parity caused billions of dollars in losses. The NYDFS wanted to restate, and formalize, what it expected from issuers under its supervision.
The Guidance requirements focus on three areas:
Backing and redemption: each stablecoin must be “fully backed” by a reserve of assets whose market value is at least equal to the face value of all tokens in circulation, as of the end of each business day. The issuer must adopt clear redemption policies, approved by the NYDFS, conferring on any legitimate holder a right to redemption at par against the US dollar, within a timeframe the Guidance describes as “timely.”
Reserve composition: reserve assets must be segregated from the issuer’s own assets and held with US custodial institutions. The eligible categories are restrictive: US Treasury bills with maturities of three months or less, reverse repurchase agreements secured by Treasuries, money market funds invested in government obligations (with caps), and deposits with chartered banking institutions.
Attestations: an independent Certified Public Accountant (CPA), approved by the NYDFS, must examine reserve adequacy monthly, according to AICPA standards. An annual report on internal controls is also required.
This Guidance is not a law. It is an act issued by a state regulator. But its practical reach is worth understanding: the NYDFS supervises the issuers of three of the six largest centralized dollar-backed stablecoins, including Circle’s USDC and Paxos’ BUSD (at the time). The New York standards thus, de facto, served as a reference for the American market well before the adoption of a federal law.
2. The Wyoming Stable Token Act (March 17, 2023) and the Launch of FRNT
Wyoming, true to its reputation as a legislative laboratory for crypto-assets, became the first US state to adopt a law authorizing the issuance of a stablecoin by a public entity. The Wyoming Stable Token Act (SF0127), signed on March 17, 2023, creates the Wyoming Stable Token Commission and authorizes it to issue stable tokens, defined as virtual representations of a US dollar held in trust by the State of Wyoming.
Implementation was slower than expected. The Commission initially aimed for issuance before the end of 2023. After a phase of recruitment and technological development in 2024, blockchain tests took place in the first half of 2025. The final mainnet deployment was completed on August 18, 2025, and the stablecoin, renamed FRNT (Frontier Stable Token), was publicly launched in October 2025 with reserves managed by Franklin Advisers and Fiduciary Trust Company International.
The FRNT model has two distinctive features:
It is overcollateralized at 102%, meaning each dollar issued is backed by at least $1.02 in reserves.
The interest generated by the reserves (invested in short-term Treasuries) is allocated to the Wyoming School Foundation Fund, linking the token’s adoption to a public educational benefit.
The initiative raises questions of legal classification. Some commentators have described the FRNT as a “camouflaged CBDC,” a comparison the Commission firmly rejects. The distinction rests on the fact that the FRNT is a token, not a currency issued by a central bank, and it does not allow the state to control or restrict its holders’ transactions.
With the adoption of the GENIUS Act (see below), Wyoming’s position has been clarified: the Commission is exempt from the federal framework as a government entity, and Wyoming’s special-charter banks (Special Purpose Depository Institutions or SPDIs) are recognized as non-insured banks that can issue stablecoins.
3. The GENIUS Act (signed July 18, 2025)
The Guiding and Establishing National Innovation for U.S. Stablecoins Act is the first American federal law creating a comprehensive regulatory framework for payment stablecoins. Adopted by the Senate then the House of Representatives, it was signed by President Trump on July 18, 2025.
Scope and definition
The GENIUS Act defines the payment stablecoin as a digital asset (recorded on a cryptographically secured distributed ledger) used or designed to be used as a means of payment or settlement, and whose issuer is obligated to convert, redeem, or reimburse it for a fixed amount of monetary value in national currency.
The definition excludes national currencies, deposits within the meaning of the Federal Deposit Insurance Act, and securities within the meaning of federal securities laws. Tokenized money market funds, for example, remain regulated as funds.
Who can issue?
Only Permitted Payment Stablecoin Issuers (PPSIs) can issue payment stablecoins in the United States. Three categories are admitted:
Subsidiaries of insured depository institutions, regulated by their affiliated federal banking regulator (OCC, FDIC, Federal Reserve, or NCUA).
Federally qualified nonbank payment stablecoin issuers (Federal Qualified Nonbank Payment Stablecoin Issuers), supervised by the OCC.
State-qualified payment stablecoin issuers (State Qualified Payment Stablecoin Issuers), operating under a state regime “substantially similar” to the federal framework, provided their total outstanding amount does not exceed 10 billion dollars.
A notable point: non-financial public companies and their foreign equivalents are prohibited from issuing stablecoins, unless unanimously approved by a Stablecoin Certification Review Committee chaired by the Secretary of the Treasury. This provision aims to prevent tech giants from repeating Meta’s Libra/Diem experience.
Reserves and Transparency
Issuers must maintain reserves at least equivalent, on a 1:1 basis, to the face value of all stablecoins in circulation. Eligible assets are limited to US dollars, short-term Treasury bills, and high-quality liquid assets. Reserves must be segregated from the issuer’s own assets.
It is explicitly forbidden for issuers to pay interest or yield to stablecoin holders (same as MiCA).
Stablecoin Qualification
The GENIUS Act clearly establishes that a payment stablecoin issued by a PPSI is neither a security within the meaning of federal securities laws, nor a commodity within the meaning of the Commodity Exchange Act. Neither the SEC nor the CFTC therefore has jurisdiction over these instruments. This is a reversal from the position adopted under the Biden administration, where both agencies had initiated enforcement actions against stablecoin issuers.
AML/KYC Obligations and Insolvency
PPSIs are treated as financial institutions within the meaning of the Bank Secrecy Act, with all resulting obligations: AML program, customer identification (KYC/CIP), monitoring and reporting of suspicious transactions, OFAC sanctions compliance.
In the event of insolvency, stablecoin holders benefit from first-priority status over reserves, which are excluded from the bankruptcy estate within the meaning of the amended Bankruptcy Code.
Foreign Issuers
Digital asset service providers may not make available on the American market stablecoins issued by a foreign issuer, unless it operates in a jurisdiction whose regime is deemed “comparable” by the Secretary of the Treasury, and it registers with the OCC and holds reserves in the United States sufficient to meet American clients’ liquidity demands.
! This provision will take effect three years after enactment.
Implementation Timeline
The law takes effect at the earliest 18 months after enactment (i.e., January 18, 2027) or 120 days after the publication of final implementing regulations.
Federal regulators, the Secretary of the Treasury, and each state regulator have one year to issue their regulations.
In December 2025, the FDIC has already published a proposed rule for implementation procedures.
4. The Digital Asset Market Clarity Act (CLARITY Act) (passed by the House on July 17, 2025)
Adopted the same day as the GENIUS Act in the House of Representatives, the CLARITY Act (H.R. 3633) aims to create a comprehensive framework for all digital assets, beyond just stablecoins.
Classification of Digital Assets
The CLARITY Act introduces a distinction between three categories:
Securities, regulated by the SEC. Digital commodities, regulated by the CFTC. Payment stablecoins, regulated under the GENIUS Act.
The definition of digital commodity rests on a functional criterion: a digital asset “intrinsically linked to a blockchain system, whose value derives or can reasonably be expected to derive from the use of that blockchain system.” Securities, derivatives, and stablecoins are excluded from this category.
The text specifies that an investment contract asset, meaning a digital asset sold as part of an investment contract, is not itself an investment contract within the meaning of securities law. This nuance aims to resolve the jurisprudential uncertainty that weighed on the classification of many tokens since the Howey test applied by the SEC.
Division of Authority
The CFTC obtains “exclusive jurisdiction” over spot markets for digital commodities, including oversight of Digital Commodity Exchanges (DCEs), brokers, and dealers. The SEC retains its authority over primary transactions involving investment contracts and may exercise its anti-fraud and anti-manipulation authority on secondary markets when SEC-registered entities operate there.
Registration and Obligations
DCEs (brokers) must register with the CFTC, meet minimum capital requirements, segregate client assets, join a registered futures association, and comply with the Bank Secrecy Act. A provisional registration regime (provisional status) allows existing platforms to continue operating during implementation.
Decentralized finance (DeFi) activities are excluded from registration requirements, but remain subject to the anti-fraud and anti-manipulation powers of both agencies.
Concept of Mature Blockchain System
The CLARITY Act introduces the notion of a “mature blockchain system,” defined as a system that is not controlled by any person or group of persons under common control. Once certified as mature, a digital asset built on that system can be exempted from certain disclosure obligations.
This would be the case, for example, for public blockchains (Bitcoin, Ethereum, etc.).
Where Does the Text Stand?
The CLARITY Act is not yet law. After its adoption in the House, it must pass the Senate, where two committees must examine it: the Senate Agriculture Committee (which advanced its own version on January 29, 2026 by a partisan vote of 12-11) and the Senate Banking Committee (whose markup has been postponed repeatedly). In March 2026, negotiations continue around several friction points: the question of yield on stablecoins (a commercial issue between crypto platforms and the traditional banking sector), the regulation of DeFi, CFTC nominations, and a provision on conflicts of interest of elected officials and senior government officials related to President Trump’s and his family’s crypto activities.
The chances of adoption in 2026 exist but remain uncertain. The Senate calendar is full and the November 2026 midterm elections are approaching, which could impact this provisional timeline.
Cross-Analysis: Common Overarching Principles
Despite their differences in scope and timeline, these four texts converge on several principles:
1:1 backing has become the non-negotiable standard. From the NYDFS Guidance of 2022 to the GENIUS Act of 2025, each text requires stablecoins to be fully backed by high-quality liquid assets, with segregated reserves. Algorithmic stablecoins do not survive any of these regimes.
Transparency through attestation is systematic: monthly reports verified by an independent CPA, public disclosure of reserve composition, obligation of redemption at par.
AML/KYC obligations are treated consistently across all texts, tying issuers to the Bank Secrecy Act and its requirements.
The prohibition on paying interest to stablecoin holders is a clear policy choice, shared by the GENIUS Act and the European MiCA regime. The objective is to maintain the distinction between a stablecoin (payment instrument) and a bank deposit (savings instrument). This question remains a point of negotiation in the Senate within the framework of the CLARITY Act.
And for a European and Belgian Investor or Player?
The American framework is being built in parallel with the European MiCA Regulation. The two regimes share the same concerns (reserves, transparency, redemption, AML), but differ in their architecture. MiCA is a directly applicable European regulation, with a harmonized licensing system and a European passport. The GENIUS Act relies on a dual federal-state system, characteristic of the American regulatory tradition.
Some Specific Points of Attention for a Belgian Player:
The GENIUS Act provides an equivalence mechanism for foreign issuers, but it is not yet operational. The question of whether the MiCA regime will be deemed “comparable” by the US Secretary of the Treasury is open. An article published by the World Economic Forum in September 2025 noted greater convergence than it might appear between the two regimes, which is a favorable signal.
European platforms that list American stablecoins will need to monitor the interaction between MiCA and the GENIUS Act. MiCA already imposes the delisting of non-compliant stablecoins (deadline of December 30, 2024), and the GENIUS Act will eventually prohibit American service providers from marketing stablecoins issued from unrecognized jurisdictions.
The question of yield on stablecoins is a major commercial issue on both sides of the Atlantic. Both MiCA and the GENIUS Act prohibit the payment of interest by the issuer. But reward programs offered by platforms (and not by the issuer directly) fall in a gray area that neither has yet fully addressed.
The European Banking Authority moreover flagged in June 2025 a risk of overlap between MiCA and the Payment Services Directive (PSD2) on this question (see also: Stablecoin Interest at a Crossroads: MiCA’s Prohibition and the US Regulatory Maze).
The CLARITY Act, if adopted, would provide an asset classification framework for digital assets that could simplify regulatory classification for European players with operations or clients in the United States. The concept of digital commodity with exclusive CFTC jurisdiction would offer legal predictability that is still lacking in the current American framework.
Key Takeaways
The United States has gone, in less than two years, from a federal regulatory void on crypto-assets to a structured framework for stablecoins (GENIUS Act, in force) and potentially for the entire digital asset market (CLARITY Act, in progress). The GENIUS Act and MiCA share a common foundation: full reserves, transparency, prohibition of interest, AML obligations. Their divergences stem more from institutional architecture than from regulatory philosophy.
For an investor, the immediate stake is one of monitoring: the crypto ecosystem in which they operate is increasingly structured by standards that respond to one another across continents.
Understanding the GENIUS Act and the CLARITY Act means understanding the direction in which the global market is headed, and anticipating the effects these texts will have on platforms, tokens, and services accessible from Europe.
To go further: cryptomonnaie.be — The cryptocurrency blog in Belgium | Newsletter CryptoBelgique — Stay informed about news and updates
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