A guide to stablecoins and the GENIUS Act

Stablecoins are drawing increased attention—and now, for the first time, they have a federal playbook.

On July 18, 2025, President Donald Trump signed the GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins). This landmark law creates the first U.S. regulatory framework for payment stablecoins, setting standards for who can issue them, how they must be backed and what disclosures are required.

To cut through the noise, we sat down with Clint Dishman, director of the Strategic Investment Advisors group at BOK Financial®, to talk about what this really means, why it matters and what he’s watching as the rules take shape.

Can you explain what stablecoins are in simple terms, and why they need specific regulation compared to other cryptocurrencies?

Dishman: Stablecoins are digital tokens that aim to maintain a fixed value, usually tied to the U.S. dollar. Unlike other cryptocurrencies that can fluctuate in price, stablecoins are designed to be more predictable and usable for financial transactions, particularly payments and settlements.

These tokens are digital representations of value recorded on a distributed ledger network, forming a new type of payment rail that enables real-time, programmable transactions.

Because they’re intended to function like money, they require clear rules to ensure they’re properly backed and transparently managed. The GENIUS Act provides that structure by requiring issuers to hold one-to-one reserves in liquid assets, disclose those reserves monthly and comply with regulatory standards such as anti-money-laundering (AML), know-your-customer (KYC) and Bank Secrecy Act (BSA) requirements.

For the average person, what are the most important things to understand about the GENIUS Act? How might it directly affect them?

Dishman: The GENIUS Act is a new federal law that sets rules for a specific type of digital asset called a “payment stablecoin.” These are designed to maintain a stable value and be used for payments or settlements. The act doesn’t make stablecoins legal tender, and it doesn’t guarantee their safety or value. In short, the act creates a regulated category for payment stablecoins and spells out the safeguards—such as reserve requirements, transparency standards and compliance obligations—that issuers must meet.

For most people, this means that if they ever use a stablecoin in the future—whether for sending money or making a payment—they’ll be using something that’s regulated and backed by liquid assets like cash or short-term Treasury bills.

Unlike traditional bank products, stablecoins do not pay interest. This distinction helps clarify that they are not deposit accounts and are not insured or guaranteed by the government.

How does the GENIUS Act affect traditional banks and financial institutions? Does it create new opportunities, new challenges or both?

Dishman: The GENIUS Act establishes a regulatory framework for issuing payment stablecoins. It allows certain regulated entities, including subsidiaries of insured banks and Office of the Comptroller of the Currency (OCC)-approved nonbank trusts, to become permitted issuers. This could create new opportunities for banks to participate in the digital asset space by issuing stablecoins or integrating them into payment and settlement workflows.

That could create new opportunities in digital payments and client engagement. However, it also introduces challenges—especially around compliance, technology infrastructure and risk management. Institutions will need to assess whether and how they want to participate, and readiness will vary depending on their strategy and regulatory posture.

Does this act make stablecoins a safer or more accessible option for everyday transactions? Why or why not?

Dishman: The GENIUS Act introduces several important safeguards that make stablecoins safer than they were under prior conditions. Issuers must maintain one-to-one reserves in highly liquid assets like cash or short-term Treasuries. These reserves must be disclosed monthly, certified by both the CEO and CFO, and examined by a registered public accounting firm. If an issuer’s stablecoin issuance exceeds $50 billion, they are also required to undergo annual financial audits.

The act prohibits paying interest and risky practices such as rehypothecating reserves. It also mandates that reserves be held in segregated accounts and supervised by federal or state regulators. In the event of insolvency, stablecoin holders have first-priority claims over other creditors, a significant consumer protection.

Additionally, issuers must comply with key financial integrity standards, including the BSA, AML rules and KYC requirements. These measures help prevent misuse and ensure that stablecoin activity aligns with broader financial system safeguards.

That said, stablecoins are still not insured by the Federal Deposit Insurance Corporation (FDIC), and they’re not classified as legal tender. Consequently, while the act improves transparency, oversight and consumer protections, it doesn’t turn stablecoins into traditional bank products or investment vehicles. They remain a new and evolving category of digital assets.

How do you see the GENIUS Act shaping the future of the cryptocurrency market in the U.S.? Could it encourage more mainstream adoption of digital assets?

Dishman: The act provides a clear framework for one segment of the digital asset market, payment stablecoins. That clarity could encourage more regulated institutions to explore use cases like cross-border payments, automation and ensuring equal access to financial products and services. However, it’s important to note that the act doesn’t apply to all types of crypto, and it doesn’t mandate bank participation. Adoption will depend on how institutions and regulators respond over time. For now, it’s a step toward structure, not a signal of widespread rollout or endorsement.

When will the GENIUS Act actually take effect—and what are you watching in the meantime?

Dishman: Not right away. The law becomes effective whichever is earlier—18 months after it was signed or 120 days after regulators finalize the implementing rules. The earliest date depends on how quickly agencies complete rulemaking, so it will take time. Until then, stablecoins remain an emerging concept with the potential to make payments faster, more cost effective and programmable.

We’re monitoring regulatory rulemaking, industry responses to key challenges, the effectiveness of stablecoin‑based payment solutions and whether market demand develops.