NFT REVIEW From BTC to Stablecoins to GENIUS: Tracking Crypto Regulations

If you’re interested in issuing or using stablecoins, you should already be tapped into the current deliberation about the novel GENIUS Act. The act, also known as the Guiding and Establishing National Innovation for US Stablecoins Act, was introduced early this year. At first, it seemed all about regulating stablecoins. However, its implications extend to other digital assets, including non-fungible tokens and CBDCs. Here’s a look at crypto regulations and how GENIUS could potentially affect virtual asset ecosystems:

Cryptocurrencies Vs. Stablecoins

You probably know about cryptocurrencies like Bitcoin and how volatile they can be. However, not all move in this manner. Stablecoins are unique cryptos that are pegged to fiat currencies, which tend to move insignificantly. In fact, the value of one dollar can remain so for years, making stablecoins worthy of their name. Tether and USDT are the popular stablecoins, but before they got here, investors and users only had volatile options like Bitcoin and Ethereum.

Bitcoin made its name in the gambling industry where it was embraced by casinos and punters as a way to make a deposit or withdrawal. Today, nearly all casinos offering table games and online slots for real money accept crypto deposits. In fact, crypto has become a key feature of casinos and sportsbooks, which offer exclusive bonuses for deposits. Retailers, financial institutions, and governments have also embraced crypto, with some even making Bitcoin a legal tender. Both stablecoins and cryptocurrencies are built on blockchain technology and advanced cryptography and offer decentralized currencies.

Regulating Crypto Markets

Cryptocurrencies remained unregulated for many years, but things began shifting as the market capitalization of coins like Bitcoin and Ethereum grew. The introduction of crypto spot ETFs and NFTs has also increased interest and accessibility for the traditional investor. What’s more, the emerging CBDC landscape promises to make virtual currencies more accessible to the general public. CBDCs or central bank digital currencies are merely virtual fiats that leverage blockchain technology and other digital efficiencies even though they’re regulated by governments.

Lawmakers in the US are structuring new frameworks to help regulate the use of crypto. Talks about a US Crypto Reserve and potential digital dollar show just how much cryptos have become integrated with the modern economy. The European Union already has solid regulations after passing the MiCA (Markets in Crypto-Assets) regulation in December 2024. Since then, the US has been under pressure to structure its own laws, which led to the introduction of GENIUS in February 2025.

The Latest News On GENIUS

As things stand, the future of the GENIUS Act of 2025 hangs in the balance. Passing the Senate Banking Committee was a significant step, and the act is currently being rushed to a floor vote in May. The act seeks to provide regulatory clarity and oversight for payment stablecoins. Its key provisions include a dual oversight system, reserve requirements, and various compliance measures. However, despite coming from bipartisan origins, the act has faced political turbulence caused by conflicts of interest.

Feathers were ruffled after the family of US President Donald Trump became involved in the crypto industry by introducing a stablecoin. A substantial investment by a foreign entity further intensified scrutiny, leading to a faction of lawmakers introducing the End Crypto Corruption Act. Their concern is that GENIUS and similar acts may have ulterior motives to benefit personal financial interests. To combat this, they seek to prohibit all federal officials and their families from endorsing or investing in digital assets.

Key Takeaways: Forecasting the Future of GENIUS

GENIUS could lead to increased compliance costs for NFT platforms, which will now need to make sure all stablecoins they accept comply with the new regulations. Other implications include limited options caused by market consolidation, which naturally occurs when smaller issuers are unable to meet stringent requirements. One positive is that regulations could boost investor confidence in using stablecoins for NFT transactions and DeFi platforms. Nonetheless, deliberations are now in the hands of the Senate, which will determine the future of digital asset regulation.