GENIUS Act, Stablecoin Comparisons, and Loop Crypto
Back on June 17th, The GENIUS Act passed the Senate. As the House convenes “Crypto Week” starting July 14, it may be up for a vote next week. Here’s what it gets right, and what comes next for stablecoins.
A few weeks ago, the U.S. Senate quietly did something that could shape the future of crypto payments: it passed the GENIUS Act, the first major piece of legislation to create federal rules for stablecoins.
At first glance, this bill might seem like a win for regulators or a loss for offshore players like Tether. But I think it’s something bigger than that. It's a signal that the U.S. is finally starting to take stablecoins seriously, not as speculative assets, but as real financial infrastructure.
That’s good news for builders. And great news for people trying to bring crypto payments into the mainstream.
Let’s break down why:
1. It legitimizes the category
Stablecoins are no longer being treated like crypto’s weird cousin. Under the GENIUS Act, they’re recognized as valid tools for payments - as long as they’re backed 1:1 by cash or liquid Treasuries. That means no algorithmic nonsense, no murky reserves. Just stability.
This matters because it sets a clear bar for what counts as trustworthy — and opens the door for broader adoption by merchants, businesses, and institutions.
2. It redefines who gets to be a bank
This bill doesn’t just create rules for stablecoins, it cracks open a bigger question: Who gets to issue money in the first place?
For the first time, U.S. law would allow regulated nonbanks, including fintech companies and startups, to issue stablecoins and offer core financial services. If you can hold money, move money, and lend money without being a traditional bank, then what we’re really talking about is a new kind of banking.
3. It closes some long-standing gaps
For the first time, we’re getting rules on audits, disclosures, and even what happens if a stablecoin issuer goes bankrupt. The result? A much stronger consumer safety net, and far less room for bad actors to hide behind technical jargon.
What does this mean for Loop Crypto?
At Loop, we’ve spent years thinking about how people and businesses can actually use stablecoins to pay for things, subscribe to services, earn income, and move value globally. We've always believed that adoption comes from usability, not speculation.
The GENIUS Act doesn’t change our roadmap - it validates it.
We’ve always believed people and businesses will want to spend from where they hold value. This bill affirms the massive and growing role stablecoins play in that equation. We’ve built Loop to support that future, with transparent, fully backed stablecoins, recurring payments, and true interoperability across chains and protocols where value already lives.
Where this goes next
The bill now heads to the House, where there’s still debate around edge cases, but momentum is clearly on the side of progress. The bigger conversation now is about how regulated stablecoins will plug into the rest of the financial system, and whether DeFi and TradFi can finally speak the same language.
For those of us building in the space, that’s the real opportunity.
