For crypto entrepreneurs, regulators, and users alike, 2025 will be remembered as the year stablecoins finally got a rulebook.

On July 18, 2025, President Donald Trump signed the GENIUS Act into law, creating the first federal regulatory system specifically tailored to payment stablecoins.

Up until now, U.S. stablecoin issuers operated under a fragmented patchwork of state money-transmitter laws. The new statute sets national licensing requirements, reserve standards, and consumer-protection rules, while preserving a role for states whose regimes are “substantially similar” to the federal framework.

Many crypto founders choose to incorporate in the U.S. to access a predictable legal environment and build trust with users, investors, and regulators.

What Is a Payment Stablecoin, and Why Does It Matter?

Payment stablecoins are blockchain-based tokens designed to maintain a stable value, typically 1 U.S. dollar, backed by highly liquid and secure assets like cash or short-term U.S. Treasury bills. Each token must be redeemable for one actual U.S. dollar on demand.

Key advantages:

• 💵 24/7 access to digital dollars that are fast, affordable, and always on.
  
  
• 🧠 Final and irreversible settlement in seconds via public blockchains, no intermediaries, no downtime.
  
  
• 🚫 Clear separation from speculative crypto assets or unbacked tokens.
  
  

👉 Real-world example: Today, sending a $200 remittance from the U.S. can cost over 6% in fees and take days to process. A GENIUS-compliant stablecoin could reduce that cost to mere cents and settle in seconds.

Unlike traditional systems like Venmo or PayPal, GENIUS-compatible stablecoins function as natively digital dollars, enabling programmable, permissionless, and instant money movement.

What Changes with the GENIUS Act?

Until now, anyone could issue and sell payment stablecoins in the U.S. under a fragmented state-by-state framework. The GENIUS Act introduces mandatory federal standards, though it’s not immediately enforceable it will go into effect 18 months after being signed, or 120 days after final implementing rules are published, whichever comes first.

Key provisions:

• 📜 Mandatory federal license for stablecoin issuers.
  
  
• 🧾100% reserve backing with high-quality liquid assets requires disciplined bookkeeping and reporting processes
  
  
• 🛡️ FDIC-style protection of up to $5,000 per holder.
  
  
• 🔍 Strict AML/KYC compliance.
  
  
• 💸 Non-bank issuers banned from offering interest-bearing stablecoins.
  
  
• ❌ Federal legislators are prohibited from issuing stablecoins (though the President is not).

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Why Wyoming Matters More Than Ever

Wyoming isn’t just another state, it’s one of the most advanced regulatory hubs for Web3, fintech, and digital assets in the U.S. And the GENIUS Act formally recognizes—for the first time—non-FDIC-insured state-chartered entities as eligible stablecoin issuers, provided they meet federal criteria.

This places Special Purpose Depository Institutions (SPDIs)—a unique Wyoming charter—at the center of the new regulatory landscape.

What are SPDIs?

• Crypto-friendly banks without federal deposit insurance.
  
  
• Authorized to custody digital assets and issue stablecoins under Wyoming law.
  
  
• Built to balance regulatory compliance with decentralized financial innovation.
  
  

The SPDI framework aligns perfectly with GENIUS Act requirements, positioning Wyoming as the ideal jurisdiction for stablecoin issuers and blockchain-native projects to scale while staying compliant.

Added Benefits of Incorporating in Wyoming

• 💰 Lower ongoing maintenance costs compared to other states.
  
  
• 👤 Privacy advantage: No public disclosure of owners or managers in the state registry (only the registered agent is listed).
  
  
• 🧩 Legal clarity around utility tokens, DAOs, and crypto-first entities.
  
  
• 🤝 Growing federal recognition of Wyoming’s pioneering approach.
  
  

Lazo Can Help You Stay Ahead

The GENIUS Act is reshaping how stablecoins are issued, licensed, and supervised in the U.S. — and this shift creates both challenges and unique opportunities for Web3 and fintech founders.

Whether you're exploring Wyoming SPDIs, launching a stablecoin project, or restructuring your corporate entity to meet new federal licensing standards, your legal and operational foundations will determine how fast — and how safely — you can scale.

👉 With Lazo, you get more than incorporation paperwork. You get a strategic partner to:

• Form and structure your U.S. entity with regulatory readiness from day one.
• Navigate the evolving stablecoin landscape with confidence.
• Prepare for audits, licensing, and investor due diligence.

📅 Schedule a call with our team to design your regulatory roadmap.
💼 Explore Pricing to plan your next steps.
🎓 Join upcoming Webinars for founders shaping the future of Web3.
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