Launchy Regulatory Roundup #46 - GENIUS Act & The New Era for Stablecoins

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Welcome to our 46th edition of the regulatory roundup. If you know anybody who would benefit from this content, please help us spread the word!

In Today's Edition:

• Headline: GENIUS Act & The New Era for Stablecoins 🇺🇲 

• Global Legal Roundup

• Case Study: Citadel Pushes Back on Tokenized Equities 🔎 

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HEADLINE

GENIUS Act & The New Era for Stablecoins

State of play: On July 18, 2025, President Donald Trump signed the GENIUS Act (Guiding and Establishing National Innovation for US Stablecoins) into law, marking the first major piece of crypto legislation in US history.

• The act establishes a federal regulatory framework for fiat-backed stablecoins, requiring full reserves, regular audits, and licensing for issuers.

• It passed with overwhelming bipartisan support, 308–122 in the House and 68–30 in the Senate, and was celebrated by industry leaders.

• The GENIUS Act provides long-awaited regulatory clarity, especially for stablecoin issuers.

• Algorithmic and crypto-backed stablecoins remain outside the scope of this bill, with the former expected to be handled through separate legislation.

The law has already catalysed a rapid market response. Within a week, stablecoin supply surged by $4B, pushing the total market cap above $264B.

• Major financial institutions, including Bank of America and JPMorgan, have announced plans to launch stablecoin offerings under the new framework.

• Industry analysts say the GENIUS Act could boost US dollar dominance globally by reinforcing trust in dollar-backed digital assets.

• The bill also serves as a foundation for broader crypto regulation, with lawmakers now focusing on comprehensive market structure legislation.

What’s Next: The Senate is expected to act by September 30.

Why it Matters: The GENIUS Act brings long-awaited regulatory clarity to stablecoins, unlocking institutional participation and setting the stage for broader US crypto policy.

Our Take: The real test will be how effectively regulators implement the law and whether future legislation can balance innovation with systemic safeguards.

• For now, it’s a clear signal: US crypto policy is finally moving beyond headlines into structured action.

GLOBAL LEGAL ROUNDUP

America:

• 🇺🇲 US may charge Dragonfly over Tornado Cash ties.

• 🇺🇲 US DOJ drops probe into Kraken co-founder Jesse Powell.

• 🇺🇲 US crypto legislation drives $4B surge in stablecoin supply.

• 🇺🇲 SEC explores Ethereum token standard for compliant securities.

• 🇺🇲 Senate Republicans release crypto market structure discussion draft.

• 🇺🇲 FTX to begin $1.9B payouts in September as claims no longer disputed.

Europe:

• 🇪🇺 CoinShares secures EU-Wide MiCA license.

Middle East & Africa

• 🇬🇭 Ghana plans crypto firm licensing in response to growing demand.

• 🇳🇬 Nigeria opens doors to stablecoin firms under regulatory oversight.

APAC:

• 🇦🇺 Australian fintech Finder wins court battle over crypto yield product.

• 🇭🇰 Hong Kong to criminalize unlicensed stablecoin promotions from Aug. 1.

• 🇰🇷 S. Korea tells firms to cut exposure to crypto ETFs, Coinbase and Strategy.

CASE STUDY

Citadel Pushes Back on Tokenized Equities

Credits to The Block and Sarah Wynn for the original article

State of play: Citadel Securities has formally urged the SEC to reject regulatory exemptions for tokenized equities, arguing they should be subject to the same rules as traditional stocks.

• In a letter to the SEC Crypto Task Force, Citadel expressed concerns over liquidity fragmentation and investor confusion.

• Citadel emphasises that tokenization shouldn't be used for regulatory arbitrage.

• This comes as firms like Coinbase push to offer tokenized versions of traditional equities on blockchain platforms, potentially enabling 24/7 trading and disrupting legacy market structures.

Citadel’s resistance highlights the tension between Wall Street incumbents and crypto-native challengers. While the SEC is exploring an “innovation exception,” Citadel is calling for a cautious, rule-based process with full public input.

Our Take: The debate underscores a key regulatory question: should new technology inherit old rules, or be granted space to redefine them? The outcome could reshape how equities are traded in a blockchain-powered future.

Take a peek at our referral reward at the bottom of this issue. Share this newsletter and receive our comprehensive database of crypto regulations around the world👇

NOTEWORTHY READS & MEME

• Coin Center’s article on crypto tax reform.

• Haseeb’s read on Dragonfly and Tornado Cash.

• Amanda Tuminelli’s opinion on Tornado Cash and "valuable service".

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Disclaimer: All the information presented in this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice.