The GENIUS Act Is Now Law: What It Means for Web3

By VeVe Staff · August 11, 2025

On July 18, 2025, the United States took a giant step toward Web3 clarity. The GENIUS Act — short for Guiding and Establishing National Innovation for U.S. Stablecoins — is now officially law. For blockchain builders, digital artists, and yes, even collectors, this legislation is more than policy. It’s a signal: Web3 is growing up.

So what does the GENIUS Act mean for NFTs? For VeVe? For the future of collecting in a digital-first world?

Let’s break it down.

What Is the GENIUS Act?

In simple terms, the GENIUS Act establishes the first U.S. legal framework for payment stablecoins, which are digital assets like USDC and USDP that are designed to maintain a 1:1 peg to the U.S. dollar. These aren’t speculative tokens. They’re built to function like digital cash.

Under the new law:

• Stablecoins must be fully backed by U.S. dollars or short-term Treasury assets.
  
  
• Issuers must register with federal or qualified state regulators.
  
  
• Only approved entities such as banks, credit unions, or specially licensed firms can issue them.
  
  
• Coins must be auditable, transparent, and, if necessary, able to be frozen by court order.
  
  

In short, the wild west of stablecoins now has a rulebook. And that matters.

How Does the GENIUS Act Work?

Now that the GENIUS Act is in place, stablecoin issuers must go through an approval process with either federal or qualified state regulators. 

Larger issuers have to meet stricter oversight, while smaller ones may operate under a certified state framework. Regulators review applications, check financial health, and approve only those able to meet the law’s reserve and transparency standards.

After approval, issuers are monitored on an ongoing basis. They must submit monthly reserve reports, complete independent audits, and follow strict redemption policies so holders can exchange stablecoins for cash or equivalent assets at any time. 

Regulators also have authority to inspect operations, enforce compliance, and step in quickly if an issuer is at risk of failing.

If a failure does occur, the law puts stablecoin holders at the top of the repayment list in bankruptcy. Technical standards may also be introduced so stablecoins can work across different platforms. 

Together, these measures aim to keep stablecoins reliable, protect consumers, and create a safer environment for broader adoption.

Why The GENIUS Act Matters for Web3 and Digital Collectibles

While the GENIUS Act doesn’t regulate NFTs directly, it shapes the rails that many Web3 platforms run on.

Here’s how:

• Payments: Many marketplaces use stablecoins for seamless digital transactions.
  
  
• DeFi Infrastructure: Lending, staking, and liquidity often rely on stable assets.
  
  
• Cross-border Access: Stablecoins offer a global standard that is critical for international collectors.
  
  
• Legal Legitimacy: With compliance comes confidence, especially for mainstream adoption.
  
  

That last point is big. The GENIUS Act marks a shift from "experiment" to "infrastructure." As more of the world wakes up to digital ownership, clear rules give builders and collectors the confidence to go further.

What The GENIUS Act Could Mean for VeVe Collectors

Let’s be clear. VeVe’s collectibles are not stablecoins. They are non-fungible digital assets backed by blockchain technology, verified for authenticity, and powered by some of the biggest IP in the world. But we still pay attention when major Web3 legislation drops.

Because when regulation changes the way money moves through blockchain platforms, the entire digital ecosystem takes note.

As the U.S. tightens oversight around stablecoin activity, VeVe will continue to observe, evaluate, and adapt where needed — always with our collector community at the forefront.

We don’t make promises. But we do believe in staying sharp, staying curious, and staying connected to the evolution of this space.

The GENIUS Act could lead to:

• Greater payment flexibility if stablecoins become more widely accepted.
  
  
• Improved cross-border utility, especially for VeVe’s global collector base.
  
  
• Clearer pathways for compliance and innovation, allowing us to keep building with purpose.
  
  

Whether it’s through tokenization, wallet interoperability, or evolving regulatory clarity, the digital landscape is shifting. And we’re watching it closely.

Final Thoughts: Staying Ahead in a Changing Web3 Space

The GENIUS Act may be focused on stablecoins, but its ripple effects stretch across the entire Web3 ecosystem. That includes how we collect, pay, and connect online.

For VeVe collectors, this is a moment to stay informed.

As the world moves toward more regulated, trustworthy digital finance, the platforms that thrive will be those that combine innovation with integrity. That’s always been the heart of what we do at VeVe.

We’re not here to chase trends. We’re here to build the future of collecting together.

Want to learn more about how VeVe brings fandoms, blockchain, and innovation together? Explore the VeVe blog or jump into the app and see where your collecting journey takes you.

Everything you read here is written by fans, for fans. This article was created by VeVe and is not officially affiliated with or approved by Licensors. All content referenced belong to their respective rights holders.