Post-Genius Enactment: Legal Developments And Implications For Payment Stablecoin
- IJLLR Journal
- Mar 19
- 1 min read
Nishka Mangal, Hidayatullah National Law University
Alishba Sheikh, Hidayatullah National Law University
ABSTRACT
This study looks at stablecoins' quick development from erratic, cryptocurrency-backed experiments to a regulated cornerstone of the world's financial system. The study illustrates the crucial requirement for high- quality, fiat-backed liquid reserves to maintain price parity by examining the past shortcomings of algorithmic and crypto-collateralized models, such as BitUSD, NuBits, and Terra USD-LUNA.
The Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act of 2025, which created the first federal statutory framework for payment stablecoins and successfully settled jurisdictional disputes between the SEC and CFTC, is thoroughly examined in this study. It also examines the technical and regulatory guidelines established by CFTC Staff Letters 25-39, 25-40, and 26-05, which elucidate the function of national trust banks and tokenized assets in the ecosystem of digital assets.
Finally, the study takes a comparative perspective, assessing the different regulatory paths followed by the UAE and Japan. The UAE uses a layered regime under the Central Bank's Payment Token Services Regulation (PTSR), as demonstrated by the 2026 launch of the DDSC stablecoin, whereas Japan incorporates stablecoins as electronic payment instruments into its Payment Services Act.
Keywords: Payment stablecoin, tokenized assets, CFTC letters, GENIUS Act, stablecoin reserves.
