That’s right, many stablecoins will be banned from doing business in the US unless something changes. We are talking USDT, Ripple, BUSD, DAI, and so many more
And in this video I’ll explain why this is happening and how you should protect your wallet. I’ll even show you how you can take advantage of these market changes.
Genius Act
Congress has enacted a major federal regulatory framework that imposes strict rules on how stablecoins work, who can issue them, and when/where non-compliant ones can be offered.
Some of the core points of the GENIUS Act:
Only “permitted payment stablecoin issuers” (PPSI) can issue stablecoins within the U.S.
100% reserve backing required, held in safe assets (like USD, short-term Treasuries etc.), in segregated accounts.
Issuers can’t pay interest or yield on the stablecoins themselves.
They need transparency: monthly disclosures of reserves, audits, compliance with anti-money laundering (AML) / BSA (Bank Secrecy Act) rules, etc.
Phase-in for compliance & enforcement over a 3 year period
Foreign stablecoin issuers face constraints, but there’s a path for reciprocity ->if they’re regulated in a jurisdiction with rules comparable to GENIUS, register with the OCC, and hold reserves in U.S. institutions to support U.S. liquidity demands.
Non-compliance will bring enforcement, perhaps penalties, and after certain deadlines, non compliant stablecoins will be banned from US exchanges, service providers, merchants, banks, etc.
What Is a Stablecoin?
A stablecoin is a type of digital asset that’s pegged to a fixed amount of money, like $1.
Unlike Bitcoin or Ethereum, the value of a stablecoin doesn’t fluctuate — it’s designed to be stable for use in payments, transfers, and settlements. Think of it like a digital dollar, but issued privately.
Why does it matter?
The whole idea of crypto currency is peer to peer transaction right?
If Alice and Bob both trust StableX (an unapproved US stablecoin) and agree to transact in it, they can still do so. There is no ban on holding or transacting in stablecoins in private.
In practice
Regulated intermediaries will be constrained: Exchanges, custodians, wallets, payment processors, merchants that are regulated or want to deal with regulated capital will prefer or be mandated to deal only with approved stablecoins.
Over time, “market acceptance” will converge toward GENIUS-compliant stablecoins, because that’s where liquidity, redemption, integration with traditional finance, and regulatory safety all lie.
Which stablecoins are safe to hold & use in the US
USDC by Circle
Already aligned with many GENIUS stipulations: fully backed by USD / liquid assets, monthly attestations, transparency.
They’re pushing for a charter (First National Digital Currency Bank) so they can be a fully regulated issuer under the new law.
USDT (Tether)
The biggest one under pressure.
Dual-Track approach:
Maintain USDT globally and under foreign issuer rules in the US.
Launch a USAT is native and compliant
USDT: The compliance gap is real: only 66-83% of reserves meet the stricter asset requirements.
Tether admits they need to change reserve composition, audits and custody practices
even if USDT doesn’t convert to a “permitted U.S. payment stablecoin”, it could still operate under that foreign issuer regime, as long as it meets the comparability standards
If it can’t or won’t do that then USDT might be banned in the US BUT tether would still have USAT to fall back on. ~36 months
BUSD (Binance USD / Paxos)
It had regulatory scrutiny: in February 2023, the New York Department of Financial Services ordered Paxos to stop minting new BUSD
Need to requalify
More difficult because of regulatory issues and less clean public confidence
RLUSD (Ripple)
Enterprise blockchain / payments infrastructure on top of the XRP Ledger (XRPL)
Its native token is XRP, which is used in liquidity, settlement. Not Stablecoin
The SEC and Ripple lawsuit (on XRP) was one of the defining legal battles for token classification.
As of August 2025, the SEC ended appeals and settled with Ripple (Ripple paid a fine, etc.).
The resolution clears a big overhang of regulatory uncertainty around XRP’s status in the U.S. That gives Ripple more freedom to operate (subject to future regulatory framing).
they launched RLUSD (Ripple USD), a fully regulated stablecoin pegged 1:1 to the U.S. dollar
Then we have the algorithmic stablecoins
Algorithmic stablecoins are basically an attempt to mimic central bank monetary policy with code — using algorithms and incentives instead of hard reserves in cash or Treasuries. Let me break it down:
Peg the token’s price (usually to $1 USD) without holding $1 in actual reserves for every coin issued.
Instead, rely on market incentives, collateral mechanisms, and supply/demand adjustments to keep the peg stable.
DAI (MakerDAO)
A decentralized, reserve-backed crypto asset, but not issued by a regulated entity nor fully compliant with the 1:1 backing requirements.
Likely to be treated as a non‑compliant stablecoin
They won’t go away but they will be excluded as a stablecoin and reclassified as a security
What should you do about it?
Focus capital (or allocations) on projects that already look aligned (or can pivot easily) -> USDC, USAT.
There is no upside going with new issuers because it is 1-1
If you are in BUSD or RLUSD you can stay
Rebalance away from noncompliant stablecoins like DAI
Stablecoins cannot pay interest. It is meant for payment. Need stablecoins for transactions then it makes sense. If you are looking for yield you need to look elsewhere
Stablecoins will make it easier for people to hold their money in a crypto wallet which in turn will make it easier for them to invest in other crypto assets.
Expect the crypto market to go up. BTC and ETH should also go up.
If you are looking to take advantage of this law by investing
Outside the Crypto Market
Look for the biggest winners in the genius act and potentially invest in them.
The big winners in the GENIUS Act are the institutions and players that are already regulated, well-capitalized, and able to comply with strict federal rules — in short, those who can turn compliance into competitive advantage.
🏦 1. Stock Market
Invest in regulated banks and financial institutions who are pushing crypto and stablecoins
JPMorgan (already testing JPM Coin)
State Street, BNY Mellon, and other custodial banks
Bank-affiliated fintechs (like Zelle or SoFi with banking charters)
📈 2. U.S. Treasury & Fed
Bill drives massive demand for short-term Treasuries, which stablecoins must hold as reserves.
Yield and Short term interest will go down which will push Stock Market and Inflation
💼 3. Enterprise Fintech Integrators
Can help businesses adopt compliant stablecoins for payroll, treasury, and cross-border payments
Use GENIUS-compliant stablecoins in B2B platforms, DeFi-on-ramps, or SaaS payment flows
Stripe, Visa, Fireblocks, Anchorage, Coinbase Cloud, etc.
🏚️3. Real Estate
As inflation goes up one of the best ways to protect your purchasing power is by investing in real estate rentals and using a long term mortgage
The inflation will make houses less affordable which push more people towards renting instead of owning a house
If you want to invest in real estate with me click the link in the description to download my investor gameplan
Watch the video