- Jakob Brezigar
- Updated: July 17, 2025
- Reading time: 6 min
Stablecoin Bill Explained: Definitions, Framework, Compliance & 2025‑26 Outlook
A stablecoin bill brings clarity and oversight to stablecoins—digital tokens pegged to fiat—by defining who can issue them, what backing is required, and how they must be audited, licensed, and monitored. In June 2025, the U.S. Senate passed the GENIUS Act (68–30), mandating full reserve backing, monthly disclosures, and a $10 billion threshold for federal oversight.
Globally, regulatory frameworks are emerging: Hong Kong begins stablecoin licensing in August 2025, and enterprises—from PayPal to Amazon—are exploring token integration for faster, lower-cost payments.As bank-chartered issuers pursue Fed master accounts, mid-2026 is shaping up to be the moment when compliant, scalable stablecoins enter mainstream finance.
Orcabay, an experienced market maker active on over 30 exchanges — including Binance, Bitstamp, and Coinbase — specializes in delivering tailored liquidity solutions. Contact us to learn more!
What is a stablecoin bill and why it matters?
A stablecoin bill refers to proposed or enacted legislation that defines and regulates digital assets pegged to fiat currencies—commonly 1:1 with the US dollar. Key aims include:
- Defining “payment stablecoins” (tokens redeemable for a fixed amount).
- Setting issuer standards —licensed entities, reserve backing, audits, disclosures.
- Assigning regulatory oversight, federally or at the state level.
A stablecoin bill marks the shift from experimental crypto to regulated, mainstream financial infrastructure—where trust and compliance underpin broader market adoption.
How does the current US stablecoin bill framework work?
What does the GENIUS Act require?
The GENIUS Act (S. 1582), passed by the US Senate on June 17, 2025 with a 68–30 vote
Mid‑2025 marks a turning point for crypto regulation globally:
- Full 1:1 fiat or liquid asset reserve, with monthly public disclosures and annual independent audits.
- Issuers must be federally chartered banks or eligible nonbanks, with state-federal supervision; state issuers crossing $10B issuance must transition federal.
- Clear legal status —stablecoins are neither securities nor commodities under this bill.
- Consumer-protection and AML compliance —reserves must be auditable; enforcement aligned with Bank Secrecy Act.
The companion STABLE Act in the House generally aligns but lacks some GENIUS constraints (e.g., $10 B federal threshold, issuer nationality limits)
What other compliance or frameworks apply globally?
How does US policy compare to EU MiCA and Asian approaches?
- EU MiCA became fully effective December 2024, requiring licensure, reserve transparency, consumer protection and governance rules for stablecoins.
- UK framework under FCA and PRA is evolving, leaning on Basel standards for risk treatment.
- Asia / Hong Kong: licensing takes effect August 1, 2025. Chinese tech giants (JD, Ant) are preparing renminbi and HK dollar stablecoins to support yuan internationalization.
These frameworks share core elements: reserve backing, licensed issuance, disclosures, and AML/KYC—although implementation differs.
What are the main KPIs and risk metrics for stablecoin issuers?
Issuers should monitor and report:
- Reserve ratio (e.g., 100% fiat/liquid asset backing).
- Transparency metrics: monthly reserve compositions, audit reports, redemption time SLA.
- Liquidity stress tests: run periodic on‑chain redemption drills.
- Counterparty risk: rated assets only; exclude volatile crypto reserves (e.g., Bitcoin, gold).
- Compliance KPI: AML thresholds, suspicious activity reports, regulatory inspections.
A best-practice framework is ISO 22301-style resilience integrated with Basel III treasury controls and regular compliance scoring (e.g. audit findings = x%).
What are current trends and the 2026 outlook?
Which developments mark 2025 and what lies ahead?
- US “Crypto Week” planned by House Republicans (July 2025) to vote on GENIUS, Clarity & anti‑CBDC acts.
- Ripple, Circle and Anchorage seeking bank-charters to manage reserves directly with the Fed.
- Tether, with $156 B circulation, faces pressure due to opaque practices, but may adjust or exit US market.
- Corporate usage ramp-up: PayPal, Amazon, Walmart exploring stablecoin payments for lower fees and real-time settlement.
- Global CBDC pressure: BIS and central banks continue evaluating stablecoins as part of next-gen monetary systems.
2026 Forecast: Expect final Congressional passage of GENIUS/STABLE, with rollout of bank-chartered stablecoins in Q1‑Q2 2026. EU and HK frameworks mature; cross-border compliance will drive demand for Orcabay-style liquidity management and multi-jurisdictional risk controls.
Why Orcabay is well‑positioned to help
Orcabay’s expertise lies in:
- Algorithmic market‑making: providing on‑chain liquidity while monitoring regulatory constraints
- Exchange partnerships: working with chartered entities to ensure compliance
- Treasury/back‑reserve optimization: integrating compliance KPIs with yield assets under regulatory limits
Your stablecoin project can benefit from Orcabay’s infrastructure to meet regulatory, liquidity, and treasury requirements simultaneously.
Conclusion
The stablecoin bill landscape marks a pivotal turning point in digital finance. First, definitions and clarity have been firmly established—“payment stablecoins” are now legally defined and categorized under distinct regulatory frameworks. Second, reserve and compliance standards are formalized: full-1:1 backing with liquid assets, regular audits, issuer licensing, and robust AML safeguards. Third, there’s global alignment—the U.S. GENIUS Act dovetails with EU MiCA, UK, and Asian stablecoin regulations, setting shared expectations for oversight. Fourth, the market impact is profound: banks and fintechs gain structured pathways to deploy stablecoins, corporations are primed for adoption, and opaque issuers like Tether may retreat from the spotlight.
Finally, 2026 momentum looks strong: expect bank-chartered issuance, cross-border interoperability, and increasing regulatory certainty as stablecoins transition from fringe crypto assets to core financial infrastructure.
As stablecoins evolve into mainstream infrastructure, regulation fosters trust and resilience. Orcabay, with deep expertise in liquidity orchestration, algorithmic trading, and exchange partnerships, is uniquely positioned to help projects navigate this evolving landscape—aligning transparency, compliance, and scalable infrastructure at the intersection of innovation and regulatory rigor.
Disclaimer: The information provided in this article is for informational purposes only and does not constitute financial, investment, or other professional advice. All opinions expressed herein are solely those of the author and do not represent the views or opinions of any entity with which the author may be associated. Investing in financial markets involves risk, including the potential loss of principal. Readers should perform their own research and consult with a licensed financial advisor before making any investment decisions. Past performance is not indicative of future results.
Jakob Brezigar
Jakob, an experienced specialist in the field of cryptocurrency market making, boasts an extensive international presence. With Orcabay, he has skillfully managed major operations and deals for a wide array of global stakeholders.
