Foreign media reports state that after the passage of the GENIUS Act, USDC’s compliance structure quickly attracted attention from institutional markets. The article notes that Circle had already built its reserve, custody, and disclosure systems in a manner closely aligned with the new regulations, giving USDC a head start under America’s new stablecoin framework.
Core requirements of the GENIUS Act
The bill establishes the first federal framework for U.S. stablecoins, requiring issuers to back tokens 1:1 with high-quality liquid assets and disclose reserve holdings monthly. The article states that large issuers will also be subject to more direct federal oversight, and stablecoin holders will have priority claim rights in the event of issuer bankruptcy.
USDC moves ahead to align with the new regulations.
The article states that, prior to the law taking effect, Circle had already placed the majority of USDC's reserves in short-term U.S. Treasuries and cash equivalents, with custody and management involving BNY Mellon and BlackRock. It argues that this structure aligns closely with the law’s requirements, allowing USDC to enter the new regulatory environment without significant restructuring.
Institutional use continues to expand
The article also notes that the U.S. SEC’s adjustment to broker-dealer capital treatment, Circle’s partnership with FIS, and Circle’s listing on the New York Stock Exchange have all enhanced USDC’s institutional attributes. The author believes that USDC is transitioning from a crypto-native stablecoin to a payment and settlement asset more akin to traditional financial instruments.