The GENIUS Act: What Businesses Need to Know About Accepting Crypto Payments

Written by: Matthew Gross
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Introduction

On July 18, 2025, the GENIUS Act—formally titled the Guiding and Establishing National Innovation for U.S. Stablecoins Act (S.1582)—was signed into law with bipartisan support.[1] This landmark legislation establishes a comprehensive federal framework for the issuance, regulation, and use of payment stablecoins in the United States. For businesses considering the acceptance of cryptocurrency payments, particularly stablecoins, the GENIUS Act represents a critical turning point.

This article explores the law’s core provisions, examines its implications for businesses, and offers practical guidance for how companies can move forward with greater confidence. Drawing on The Beckage Firm’s experience advising clients on digital asset strategy, crypto compliance, and asset recovery, we offer analysis, commentary, and practical considerations for those navigating the evolving digital payments ecosystem.

Understanding the GENIUS Act

Stablecoins are digital assets that aim to maintain a stable value by pegging their worth to fiat currencies such as the U.S. dollar.[2]  These instruments offer considerable promise for faster, lower-cost, and cross-border payments. However, prior to the GENIUS Act, stablecoins operated in a fragmented regulatory landscape governed primarily by state-level regimes, informal industry standards, and limited federal oversight.[3] The GENIUS Act seeks to change that by introducing a unified framework at the national level.

At its core, the Act is designed to promote responsible innovation. It fosters the growth of blockchain-based financial tools while prioritizing consumer protection, transparency, and financial stability.

Core Provisions of the GENIUS Act:

The Act’s key provisions include:

• Federal Oversight of Issuers: Both banks and non-bank financial institutions are authorized to issue payment stablecoins under the Act, but must first obtain approval from, and remain subject to supervision by, designated federal regulators. Non-bank issuers must register with the U.S. Treasury and demonstrate compliance with operational, risk management, and financial requirements.[4]
• Reserve Backing Requirements: All issuers must maintain reserves equal to 100% of the value of the stablecoins in circulation. Qualifying reserves include highly liquid, low-risk assets like cash and short-term U.S. Treasury securities. These provisions are designed to ensure liquidity, reduce counterparty risk, and prevent the kind of instability observed in previous crypto market failures.[5]
• Mandatory Consumer Disclosures: All issuers must provide clear, and accessible disclosures about the nature of the stablecoin, how it is backed, redemption rights, and the legal structure supporting the token. This is meant to ensure that consumers understand the risks and mechanics involved in transacting with stablecoins.[6]
• Ban on Algorithmic Stablecoins: The Act specifically prohibits the issuance of algorithmic stablecoins that are not fully backed by tangible reserves. This provision addresses vulnerabilities in models that rely on software code or supply adjustments, which have historically proven susceptible to crashes and manipulation.[7]
• Federal-State Coordination: While establishing a uniform federal baseline, the GENIUS Act preserves a role for state-regulated entities to operate nationwide, provided they meet federal standards. This dual approach aims to harmonize oversight while respecting existing regulatory frameworks.[8]

Together, these provisions aim to enhance public trust and institutional participation in the use of digital dollars.

Implications for Businesses

For businesses evaluating whether to accept crypto payments, the GENIUS Act significantly reduces the legal ambiguity surrounding stablecoins.  By providing a federal framework with defined oversight, disclosure, and reserve requirements, the Act offers a pathway for businesses to adopt crypto payments with greater assurance.

This new framework introduces both opportunities and obligations.

On the opportunity side, businesses may benefit from reduced payment processing fees, faster settlement times, and greater access to international markets. Stablecoins allow for real-time transfers without dependence on traditional banking rails, which is especially useful for businesses operating in global supply chains or with high-volume e-commerce operations.

Adopting stablecoins may also enhance a company’s reputation as forward-looking and technologically sophisticated, attributes that may resonate with younger or digitally fluent customer bases. In certain industries, early adoption of stablecoin payments could become a strategic differentiator. But these benefits do not come without responsibility. Businesses must understand how accepting crypto payments may expose them to regulatory obligations, ranging from money transmission licensing and Know Your Customer (KYC) requirements to tax reporting and financial recordkeeping. Even with the GENIUS Act in place, the broader regulatory environment remains complex and evolving.

Operationally, companies will also need to consider issues such as wallet custody, asset volatility, reconciliation procedures, and cybersecurity safeguards. While stablecoins are generally less volatile than other cryptocurrencies, they are not entirely immune to price fluctuations or liquidity constraints during market stress.[9]

Building a Compliant Crypto Payment Program

Businesses seeking to accept stablecoins should take a structured, compliance-forward approach to implementation.

The first step is conducting a legal and regulatory assessment. This involves reviewing your corporate structure, customer base, and transaction volume to determine whether accepting stablecoins might qualify as money transmission or trigger other licensing obligations. Businesses operating in multiple states or jurisdictions should pay particular attention to cross-border compliance.

Next, companies must select a reputable payment processor or platform. Today, several providers offer end-to-end crypto payment solutions that allow for stablecoin acceptance and automatic conversion to fiat currency. The best processors will include built-in compliance tools, support for a variety of tokens, and audit transparency.

Internally, businesses should develop formal policies and controls to govern crypto transactions. This includes defining user permissions for accessing wallets, outlining steps for transaction approval, and ensuring proper reconciliation with accounting systems.

Employee training is equally important. All stakeholders—from the finance team to IT to customer support—must understand how crypto payments work, what risks they entail, and how to recognize potential fraud indicators such as phishing attempts or spoofed wallet addresses.

Finally, businesses must commit to monitoring regulatory developments. Although the GENIUS Act provides structure, federal agencies like the Treasury, SEC, and CFTC may issue additional rules or guidance as the market evolves. Staying informed will be essential to ensuring long-term compliance.[10]

Addressing the Reality of Crypto Fraud

As crypto adoption grows, so too do threats from fraud and cybercrime. Even in a more regulated stablecoin environment, bad actors continue to target businesses and consumers alike through phishing attacks, wallet hacks, and social engineering tactics.

The Beckage Firm supports clients in navigating the aftermath of crypto fraud. Our attorneys and technologists work together to investigate losses, trace digital asset movements across blockchain networks, and assist in asset recovery.

Our firm holds advanced Chainalysis certifications, authorizing us to perform forensic blockchain analysis in collaboration with law enforcement. These credentials are reserved for highly vetted organizations and reflect our unique position at the intersection of legal expertise and technological capability.

When engaged, our team provides:

• Blockchain tracing and analytics to follow the movement of funds through wallets, exchanges, and mixers
• Behavioral and wallet analysis to detect fraud patterns and map potential perpetrator profiles
• Law enforcement liaison services, including preparing investigative reports and serving as expert witnesses
• Strategic legal guidance through asset recovery efforts, including preservation of claims and regulatory notifications

By combining legal acumen with technical proficiency, we provide comprehensive support for crypto fraud victims.

Conclusion

The GENIUS Act marks a defining moment in the evolution of U.S. digital asset policy. By bringing payment stablecoins under a coherent regulatory regime, it signals that crypto is not merely a passing trend but an increasingly integrated part of the financial landscape.

For businesses, the Act offers clarity, legitimacy, and a roadmap for participation—but also demands diligence. Accepting crypto payments is no longer an act of rebellion or novelty; it is a business decision that must be made with careful planning and compliance.

At The Beckage Firm, we have help companies meet this moment. Whether you are preparing to accept stablecoins, responding to a crypto fraud incident, or exploring compliance requirements, our team offers seasoned guidance at the convergence of law, cybersecurity, and blockchain innovation.

If your business is considering crypto, consider doing it the right way—with clarity, compliance, and confidence.

 

[1] Congress.gov, S.1582 – GENIUS Act, https://tax.thomsonreuters.com/blog/how-the-genius-act-impacts-stablecoin-tax-and-accounting-reporting-standards/h Congress (2025-2026): GENIUS Act | Congress.gov | Library of Congress.
[2] Thomson Reuters, How the GENIUS Act impacts stablecoin tax and accounting reporting standards (June 27, 2025), https://tax.thomsonreuters.com/blog/how-the-genius-act-impacts-stablecoin-tax-and-accounting-reporting-standards/ans for tax and accounting professionals.
[3] Thomson Reuters, Circle’s IPO and the new era of stablecoin regulation in the U.S. (June 12, 2025), https://www.reuters.com/legal/legalindustry/circles-ipo-new-era-stablecoin-regulation-us-2025-06-12/?utm_.
[4] Jack Forestell, The Potential Genius of GENIUS, Visa Perspectives (June 23, 2025), https://corporate.visa.com/en/sites/visa-perspectives/company-news/stablecoin-regulation-genius-act.html.
[5] Thomson Reuters Tax & Accounting, How the GENIUS Act Impacts Stablecoin Tax and Accounting Reporting Standards, Thomson Reuters (June 27, 2025), https://tax.thomsonreuters.com/blog/how-the-genius-act-impacts-stablecoin-tax-and-accounting-reporting-standards/.
[6] Id.
[7] Id.
[8] Id.
[9] Samuel O’Brient, Coinbase Stock Surges 16% on a Fresh Wave of Momentum from Landmark Crypto Bill, Markets Insider (June 18, 2025), https://markets.businessinsider.com/news/stocks/coinbase-stock-price-genius-act-stablecoins-cryptocurrency-btc-coin-2025-6.
[10] Samuel O’Brient, The Head of Crypto at Visa Tells Us Why the Payments Giant Isn’t Worried About Stablecoins, Business Insider (July 27, 2025), https://www.businessinsider.com/stablecoins-crypto-visa-emerging-markets-wmt-amzn-retail-consumers-2025-7.