What the GENIUS Act Means for Stablecoins, According to SEC Commissioner Hester Peirce

The signing of the GENIUS Act into law, represents a landmark step in U.S. crypto regulation, according to SEC Commissioner Hester M. Peirce.

In a public statement, Peirce described the legislation as a “smart start” toward establishing clarity for stablecoin usage and broader digital asset innovation.

The law officially declares that payment stablecoins are not securities—a long-contested point in crypto regulation. Peirce emphasized that Americans have already embraced stablecoins as a mainstream payment method, and the GENIUS Act merely confirms what the market has signaled through widespread adoption of privately issued tokens.

By creating a structured regulatory framework for stablecoins, the law aims to protect both the financial system and its users. It delegates oversight authority to both state and federal banking regulators, ensuring stablecoin issuers are properly supervised. Peirce noted that this step enhances transparency while reducing regulatory uncertainty, encouraging innovation without compromising financial safety.

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Additionally, Peirce urged the SEC to issue updated guidance for how registrants can support the use of stablecoins by their clients. She sees the law as a catalyst for regulatory agencies to better align with consumer and market realities.

The GENIUS Act’s passage has already spurred action from major stablecoin issuers such as Tether and Circle, and is expected to accelerate institutional confidence in the U.S. crypto landscape.

Kosta Gushterov

Kosta has been working in the crypto industry for over 4 years. He strives to present different perspectives on a given topic and enjoys the sector for its transparency and dynamism. In his work, he focuses on balanced coverage of events and developments in the crypto space, providing information to his readers from a neutral perspective.