The Stablecoin Law Turned One, and the Rulebook Still Isn’t Finished

A birthday passed quietly in Washington last week, and almost nobody in crypto felt like throwing a party. The GENIUS Act, the first federal law written specifically for dollar backed stablecoins, turned one year old on July 18. That date was not just an anniversary. It was supposed to be a finish line. When Congress passed the law in the summer of 2025, it handed regulators exactly twelve months to translate the statute’s broad language into a functioning rulebook. The twelve months ran out. The rulebook did not show up. And the market all of this was meant to govern kept climbing anyway, sailing past 300 billion dollars as if the deadline were merely a polite suggestion.

A deadline built into the law

When the GENIUS Act became law on July 18, 2025, it did something unusual for financial legislation. It put its own alarm clock inside the text. Regulators had one year to write and finalize the rules that would tell stablecoin issuers how to hold reserves, how to handle anti money laundering obligations, and what it takes to operate legally on American soil. According to CoinDesk’s one year review, the agencies involved issued roughly ten notices of proposed rulemaking over those twelve months. That sounds like progress until you understand the difference between a proposal and a final rule.

A notice of proposed rulemaking is a draft. It opens a public comment window, invites feedback from banks and issuers and consumer groups, and then, in theory, gets revised and finalized. The Office of the Comptroller of the Currency put out an initial proposal back in February and followed with an anti money laundering proposal on June 22, according to reporting on the rulemaking timeline. What none of the agencies managed to do was cross the finish line. As of the July 18 anniversary, not a single final federal rule for payment stablecoins had been published. Ten drafts, zero finished products. For a law that was sold as the moment America finally got serious about stablecoins, that is a strange place to be standing on its first birthday.

The market did not wait for permission

Here is the part that should make regulators uncomfortable. While the rulebook sat unfinished, the thing it was supposed to regulate grew fast. Stablecoin supply expanded by roughly 18.6 percent over the year to reach about 308 billion dollars by the anniversary date, according to figures reported by Blockonomi. Two coins do most of the heavy lifting. Tether’s USDT and Circle’s USDC together account for around 83 percent of the entire market. That concentration is worth sitting with for a moment. A single pair of private companies now issues the vast majority of the dollar tokens moving across blockchains, and the federal framework meant to supervise them is still in draft form. That is not a comfortable arrangement for anyone who remembers what happened the last time a large stablecoin lost its peg, and it is exactly the kind of systemic risk the GENIUS Act was written to contain.

The issuers, to their credit, have not been sitting still. Circle secured conditional approval from the OCC for a national trust structure in July, a move that would place its USDC reserves on a path toward direct federal oversight. Tether took a different route, launching a separate United States focused stablecoin called USAT in partnership with Anchorage Digital earlier in the year, an attempt to wall off its regulated American ambitions from its sprawling global USDT operation. Adoption of USAT has stayed modest so far, but the intent is clear. The big players are positioning for a regulated future that the regulators themselves have not quite finished building.

Why the missed deadline matters less than the headline suggests

Before anyone panics, it helps to read the fine print. The GENIUS Act does not switch on the moment the rules are done. Its effective date lands on the earlier of two events: January 18, 2027, or 120 days after the final rules are published. Because no rule finalized after roughly late September could pull that date any sooner, January 18 now stands as the practical start line. In plain terms, there is still runway. The missed July deadline is a delay in writing the instructions, not an immediate cliff for the industry.

Still, delay carries a cost, and it lands hardest on the players who need clarity most. Foreign stablecoin issuers and state qualified issuers are the ones left squinting at an unfinished map. Without final rules spelling out who qualifies and under what terms, they face genuine uncertainty about whether they can serve American users at all when the law takes hold. The biggest domestic names can afford to wait out the ambiguity. Smaller and international issuers have a much harder time planning a business around a rulebook that keeps slipping into next quarter.

The bigger bill is stuck too

If the stablecoin story is about a law that passed but has not fully switched on, the market structure story is about a bill that cannot get across the floor. The CLARITY Act, which would sort digital assets into legal categories and split oversight between the Securities and Exchange Commission and the Commodity Futures Trading Commission, cleared the House back in the summer of 2025. It then advanced through the Senate Banking Committee on May 14 by a reported 15 to 9 vote. And there it has largely sat. As of early July, the bill was parked on the Senate calendar with no floor vote scheduled and no cloture motion filed, held up by a cluster of disputes that have kept it short of the roughly sixty votes needed to break a filibuster.

The timing is unforgiving. The Senate returned from recess in mid July with only a handful of usable weeks before the August break, the window that analysts in both New York and Washington have flagged as the last realistic chance for market structure legislation this year. Whether the votes materialize is anyone’s guess. What is clear is that the two pillars of American crypto policy, stablecoins and market structure, are both stuck in the gap between passed and operational, just at different stages of the same slow machine.

What the market is actually doing

And the prices? They are moving to their own rhythm, mostly indifferent to the legislative drama. Bitcoin was trading around 64,700 dollars in the third week of July, with Ethereum near 1,870 dollars, according to daily price coverage. After a rough stretch that saw spot bitcoin ETFs bleed more than 8.2 billion dollars across an eight week outflow streak, the flows flipped. Farside Investors recorded about 226.8 million dollars in net bitcoin ETF inflows on July 20, the fifth straight positive session, with BlackRock’s IBIT leading the pack. Ethereum funds staged their own recovery over the same window, pulling in fresh money after their own multi week slump.

The forecasts, as always, are all over the map. Standard Chartered has stuck with a 100,000 dollar year end target for bitcoin, while traders on the prediction market Polymarket have leaned toward a more modest close somewhere between 70,000 and 75,000 dollars. Nobody knows who is right, and that is rather the point. What the flows do suggest is that institutions are still willing to put real money to work while the policy questions stay open, which tells you something about how the professional side of the market is weighing the risk. Regulation and price are running on different clocks. The rulebook is late, the market structure bill is stalled, and the money kept flowing regardless. For anyone trying to make sense of digital assets right now, that disconnect is the real story. The plumbing of American crypto law is being built in slow motion while the water is already rushing through the pipes.

_________________________________________________________________________________________________________

This article is written for educational and informational purposes only and does not constitute financial or legal advice. The views and analytical frameworks presented draw on publicly available information and reported commentary from industry participants. Readers are encouraged to consult primary sources and form their own informed views on these complex topics.