The GENIUS Act: What businesses need to know about the new stablecoin framework

In July 2025, the U.S. took a historic step in digital asset regulation. With the signing of the Guiding and Establishing National Innovation for U.S. Stablecoins Act (the GENIUS Act), policymakers delivered the nation’s first comprehensive federal framework for stablecoin issuance. 

The GENIUS Act sets new standards for reserve backing, transparency and oversight of stablecoin issuers, while also signaling Washington’s recognition that digital assets – and particularly dollar-pegged stablecoins – are no longer niche. They’re becoming part of the mainstream financial system. 

But beyond crypto startups and banks, what does this mean for U.S. businesses? For many of our clients, the GENIUS Act represents both an opportunity and a challenge. 

What the GENIUS Act is trying to accomplish 

At its core, the Act is designed to bring clarity and stability to a fast-growing corner of the digital asset market. Policymakers see stablecoins as: 

• A bridge to innovation: Enabling faster, cheaper payments in both retail and B2B contexts. 
• A safeguard for consumers: By requiring one-to-one reserves in U.S. dollars or Treasuries, paired with monthly, audited reports. 
• A reinforcement of the dollar’s global role: Positioning the U.S. dollar as the default currency of the digital economy. 

Importantly, the GENIUS Act draws a bright line by noting that stablecoins are not securities or commodities if issued under the framework. That removes years of uncertainty for issuers, investors and businesses considering adoption. 

Direct impacts on businesses 

Not every company will issue or custody stablecoins, but many will interact with them, whether through payments, payroll, financing or customer-facing platforms. The most immediate impacts include: 

• Operational changes: Businesses that accept or pay in stablecoins will need to update controls, payment processes and compliance protocols. 
• Risk and compliance: Issuers and many intermediaries now fall under the Bank Secrecy Act, with obligations around Anti-Money Laundering (AML), sanctions screening and suspicious activity reporting. Even non-issuers that touch stablecoin flows may need to rethink risk management. 
• Assurance requirements: Stablecoin issuers must provide regular attestations of reserves. For clients on the assurance side, this will mean tighter audit trails and stronger governance. 
• Tax considerations: The Act itself doesn’t overhaul tax treatment, but it raises questions about property classification, reporting requirements and the IRS’s next moves. Businesses transacting in stablecoins will need clarity on gain/loss recognition and documentation. 

For many companies, the immediate task is awareness – understanding where stablecoins may appear in their business model and preparing for second-order effects. 

Risks and opportunities 

The GENIUS Act introduces significant upside for businesses that can innovate quickly and align their strategies to emerging priorities. But it also carries risks for companies that are slow to adapt or fail to connect with experienced advisors. 

Opportunities include: 

• Faster, lower-cost payments, especially for cross-border transactions 
• New tools for liquidity management and treasury operations 
• Greater comfort for investors, vendors and consumers in using a regulated, dollar-backed digital asset 

Risks include: 

• Compliance missteps if companies issue stablecoins without the right AML, KYC and monitoring infrastructure 
• Uncertainty about tax implications and financial reporting standards 
• Potential technology integration challenges for payment systems, ERP platforms or digital wallets 

The key is not rushing in blindly, but also not waiting until competitors have built a lead in adoption. Companies that take the time now to evaluate risks, strengthen compliance processes, and pilot use cases in a controlled way will be better positioned to capture the benefits of the GENIUS Act. 

Industry implications 

Some industries are likely to feel the effects of the GENIUS Act sooner than others. For these sectors, the shift isn’t theoretical – it’s already reshaping customer expectations, competitive dynamics and the technology infrastructure they rely on. 

Retail and consumer products 

Retailers have already experimented with crypto payments, but adoption has been uneven. The GENIUS Act changes the calculus: stablecoins now carry regulatory legitimacy. That means more customers may expect digital wallet options at checkout, and more retailers may find value in lower transaction costs and faster settlement. Credit cards could become a thing of the past. 

For consumer product companies, this could accelerate everything from loyalty program innovation to cross-border e-commerce. But it also requires careful planning: systems need to integrate with stablecoin payment rails, and treasury teams must manage digital cash alongside traditional bank accounts. 

Technology and fintech 

For technology companies – especially fintechs – the opportunities are even more direct. Stablecoins can serve as the foundation for new payment platforms, digital wallets and lending products. The GENIUS Act removes much of the regulatory gray area that previously slowed innovation. 

But fintechs and platforms will also face heightened scrutiny. Compliance with Bank Secrecy Act obligations, cybersecurity standards and auditability of reserve disclosures will be non-negotiable. Those that get it right stand to differentiate themselves; those that don’t may face costly enforcement. 

Other sectors to watch 

• Financial services: Banks and custodians will face competitive pressure from non-bank issuers, while also eyeing partnerships. 
• Real estate: Faster, stablecoin-enabled settlements could eventually streamline property transactions and escrow. 
• Professional services: Expect new client demand for tax, assurance and advisory support as companies navigate unfamiliar territory. 

What clients should be doing now 

The GENIUS Act doesn’t require every business to take immediate action—but it does mean companies should start preparing. We recommend: 

1. Map your exposure: Identify where stablecoins could intersect with your operations, even indirectly (payments, payroll, vendor transactions, investments). 
2. Stay alert on compliance: If you touch stablecoin flows, be ready to assess AML/KYC obligations, data security, and risk monitoring. 
3. Evaluate opportunities: Consider where faster payments, lower costs or new customer offerings could give you an edge. 
4. Educate stakeholders: Boards, audit committees and treasury teams should be briefed on both risks and potential benefits. 
5. Plan for change: Even if you’re not adopting stablecoins today, having a road map will help you move quickly if conditions shift. 

Looking ahead 

The GENIUS Act is not the end of the story – it’s the beginning of a broader digital asset framework in the U.S. In the next three to five years, we expect: 

• Consolidation of stablecoin issuers, as only the best-capitalized survive under new standards. 
• New reporting norms for companies using digital assets, likely driven by investor expectations and regulators. 
• Potential ripple effects in taxation, cross-border payments and even monetary policy. 
• States are experimenting too. Wyoming, for example, has already launched a state-backed stablecoin, showing how innovation can emerge outside Washington and potentially set competing standards. 

For businesses, the message is clear: Don’t tune this out. Stablecoins may not disrupt your industry today or tomorrow, but they’re on a trajectory to reshape how money moves in the global economy. 

How Baker Tilly can help 

At Baker Tilly, we are actively helping clients assess the risks and opportunities created by the GENIUS Act. From tax planning and assurance support to compliance frameworks and strategic road maps, our advisors can help you prepare for this new digital currency landscape. 

The GENIUS Act may be new, but the questions it raises – about risk, growth and innovation – are not. The difference now is the scale and the urgency. Baker Tilly brings the experience, perspective and foresight to help you navigate this evolving landscape with confidence – and turn uncertainty into opportunity. 

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