Executive Letter: WBA Remains Engaged on Digital Currency Policy
By Rose Oswald Poels
President Trump’s signing of the GENIUS Act into law last Friday marks a significant development in the evolving conversation around digital currencies at the federal level. The new law, which passed broadly with bipartisan support in both the Senate and House, establishes a federal regulatory framework for payment stablecoins in the United States. Among other requirements, the GENIUS Act mandates that stablecoin issuers maintain reserves on a 1:1 basis with the value of outstanding stablecoins, using assets such as cash, government securities, or other highly liquid assets including deposits held at insured banks and credit unions. The law also requires stablecoin issuers to follow BSA and tailored AML rules.
As policymakers continue to outline and debate the market structure of and other issues related to digital assets with the CLARITY Act passing the House last week and moving to the Senate, the Wisconsin Bankers Association remains committed to making sure the voice of traditional banking is heard clearly. We remain closely engaged with these conversations in order to advocate for balanced policy that preserves the strength of traditional banking.
WBA staff is currently developing resources to help our members better understand the effects of the GENIUS Act — more specifically how stablecoin and digital assets fit into the world of traditional banking—and what it may signal for future regulation. Also in the works: both banker-related and consumer-facing information pieces regarding the Act, opportunities and considerations in the evolving market, and digital currency overall. These materials will be available in the weeks ahead, and we encourage you to watch for updates in the Wisconsin Banker Daily and our website.
Digital asset issues are not limited to Washington, D.C. WBA remains engaged at the state level as well to ensure the industry is represented during cryptocurrency discussions.
WBA will continue to keep members informed as the digital assets landscape evolves. Please do not hesitate to let me or others on the WBA team know what additional education or resources would be helpful as we navigate this emerging payment method.
