The GENIUS Act has established a legal framework for stablecoins in the US, providing long-sought clarity for issuers. This legislation defines payment stablecoins, sets reserve expectations, and creates a federal framework, moving the sector out of a regulatory gray zone. However, as the Treasury, OCC, and FDIC implement the act, the focus on compliance may favor large firms with existing financial infrastructure. The Treasury's proposed rules emphasize anti-money laundering and sanctions compliance, requiring issuers to adopt rigorous financial controls. The OCC and FDIC are crafting guidelines that could transform stablecoin issuance into a supervised payments business, potentially sidelining smaller issuers unable to meet the high compliance costs. This shift may lead to a market split between crypto-native stablecoins and bank-grade stablecoins, with the latter becoming more integrated into traditional financial systems.