GENIUS Act is a U.S. federal law passed in July 2025 that mandates dollar backing and consumer protections for stablecoins, accelerating demand for USD-backed tokens and pressuring the ECB to fast-track a digital euro and explore public blockchains for CBDC deployment.
US legislates stablecoins; EU expedites digital euro plans
ECB is evaluating public blockchains such as Ethereum for CBDC pilots
Market shift toward dollar-backed stablecoins and higher demand for short-term U.S. Treasuries
GENIUS Act stablecoin regulation fuels demand for dollar-backed tokens and forces the ECB to accelerate the digital euro; read how markets and policy will react.
What is the GENIUS Act and how does it affect stablecoins?
GENIUS Act is a U.S. federal law enacted in July 2025 that sets mandatory dollar backing and consumer protections for stablecoins. It creates a uniform regulatory framework across the United States, increasing investor confidence in USD-backed stablecoins and prompting a global policy response.
How is the European Central Bank responding to the U.S. stablecoin law?
The ECB has accelerated internal timelines for a digital euro program and opened discussions on whether to pilot on public blockchains like Ethereum or Solana. Officials are weighing interoperability, privacy, and monetary control while monitoring shifts in demand toward dollar-denominated assets.
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The GENIUS Act created a competitive regulatory advantage for U.S. stablecoins by imposing clear backing and consumer rules, which could shift global payment and settlement flows. The European Union, with MiCA in place, lacked an equally forceful stablecoin regime, prompting the ECB to reassess timelines and technical options.
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Source: https://en.coinotag.com/genius-act-may-prompt-ecb-to-accelerate-digital-euro-and-consider-ethereum-as-markets-shift-toward-dollar-backed-stablecoins/