The GENIUS Act, signed by Trump on July 18, 2025, officially recognizes stablecoins such as USDT and USDC as legitimate digital assets for payments. This legislation mandates a 1:1 reserve in USD or US Treasuries, aiming to modernize the US dollar and enhance stability in digital transactions. Stablecoins have gained traction for their convenience and security, particularly in cross-border transfers, offering lower fees and faster processing than traditional banking. By 2025, daily stablecoin transactions surpassed $100 billion, exceeding the volumes of Visa and Mastercard. The act also enforces anti-money laundering measures, aligning with global regulations like the EU's MiCA and Hong Kong's Stablecoin Ordinance.