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 have operated under a 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.

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 Venmo or PayPal, which rely on traditional ACH or card networks and require pre-funding, a GENIUS-compatible stablecoin functions as a natively digital dollar, 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 (e.g., cash, Treasuries).
  
  
• 🛡️ 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

Whether you’re looking to incorporate in Wyoming, explore stablecoin issuance, or restructure your legal setup for regulatory readiness, Lazo supports startups and scaleups navigating change as a competitive edge.