Stablecoins Poised to Revolutionize Payments as New US Law Takes Effect

In August 2025, a new US law, the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, has established federal regulations for stablecoins, a form of digital currency pegged to the US dollar. This move is expected to propel stablecoins into the mainstream as a means of payment.

Stablecoins differ from volatile cryptocurrencies like Bitcoin, as their value remains stable, making them a viable option for everyday transactions. The GENIUS Act sets clear rules for stablecoin issuers, requiring them to maintain a 1:1 reserve backing with cash or short-term US Treasury securities.

Experts believe the new regulations will encourage wider adoption of stablecoins, which could disrupt traditional payment methods. Stablecoin transactions typically cost less than $0.1 and offer near-instant settlement, compared to credit card processing fees as high as 3.5% and multi-day settlement times. This could incentivize businesses to embrace stablecoins, potentially leading to cost savings that they may pass on to consumers.

However, the immediate benefits for consumers are less clear. Stablecoins currently lack the consumer protections offered by traditional payment cards. But over time, the increased use of stablecoins could enable new monetization models, such as micro-payments and instant cross-border transfers, that were previously impractical due to high fees and slow settlement times.