The New Era of Crypto Compliance in 2026: How Will the GENIUS Act Define the Future of Payment Stablecoins?

February 12, 2026, New York/Singapore — Since the official enactment of the “Guidance and Establishment of the U.S. Stablecoin National Innovation Act” (GENIUS Act) in July 2025, the U.S. digital asset regulatory landscape has undergone its most profound transformation since the advent of electronic banking. As the deadline for the final rules takes effect on July 18, 2026, federal regulators are accelerating efforts to fill in technical details within the legislative framework. For exchanges and stablecoin issuers, the GENIUS Act is no longer a future hypothetical but a tangible compliance cost that must be incorporated into strategic planning immediately.

Regulatory Acceleration: From “Framework” to “Implementation” Key Turning Point

This week, the U.S. Commodity Futures Trading Commission (CFTC) reissued Staff Letter No. 25-40, explicitly including national trust banks as qualified issuers of payment stablecoins. Although this revision appears subtle, it sends a strong signal: regulators are working to bridge the gap between the OCC-chartered custodial jurisdiction and the capital markets, allowing traditional asset service providers to enter the stablecoin issuance space through compliant structures.

Meanwhile, the Federal Deposit Insurance Corporation (FDIC) announced on February 6 that it would extend the comment period for the proposed rules (NPR) related to the GENIUS Act application process from the original deadline of February 17 to May 18. This move aims to gather more industry feedback on “bank subsidiary issuance of stablecoins,” especially regarding reserve custody, monthly audits, and bankruptcy segregation.

Notably, the White House has recently held two closed-door meetings focused on issues related to “yield loopholes” under the GENIUS Act framework. Although the law strictly prohibits issuers from directly paying interest, third-party platforms offering returns via points or rewards have sparked strong opposition from traditional banking sectors. The final resolution of this controversy will directly influence the future operational models of compliant stablecoins on centralized exchanges.

The Core “Red Line” of the GENIUS Act: 1:1 Reserves and Bankruptcy Priority

According to the law, the so-called GENIUS Act is not a mere reference but must meet the following rigid constraints simultaneously:

• Issuer Qualification: Must be a subsidiary of a depository institution, an OCC-licensed non-bank federal issuer, or a state-licensed issuer with a total issuance below $10 billion.
• Reserve Asset Quality: Must hold equivalent USD in cash, Federal Reserve deposits, or short-term U.S. Treasuries as full 1:1 backing, strictly prohibiting algorithmic or synthetic assets to support stablecoins.
• Operational Technical Capabilities: Issuers must have the technical ability to execute “legal orders” from the federal government, including address freezing or token burning.
• Bankruptcy Segregation: In bankruptcy proceedings, stablecoin holders have priority over other unsecured creditors for the repayment of reserve assets.

This means that top-market-cap stablecoins like USDT and USDC must complete comprehensive structural adjustments before the full implementation deadline in November 2026. Any stablecoin unable to meet the monthly public audit and 1:1 high-quality liquidity reserve requirements will gradually exit the compliant U.S. market.

Market Data Observation: Digital Gold and the Capital Battle over Compliance Narratives

The clarification of compliance regulation is reshaping valuation logic across the digital asset market. As of February 12, 2026, according to Gate.io’s trading terminal:

• Bitcoin (BTC) is priced at $67,425, with a 24-hour trading volume of $1.06 billion. Its market cap is $1.38 trillion, accounting for 55.93% of the market. BTC has decreased by 1.35% over the past 24 hours.
• Ethereum (ETH) is priced at $1,965.7, with a 24-hour trading volume of $249.39 million. Its market cap is $252.82 billion, with a market share of 10.04%. ETH has decreased by 2.29% over the past 24 hours.

From a market structure perspective, although BTC and ETH are under short-term pressure, the total market cap of compliant stablecoins is growing against the trend. Wedbush Securities predicts that driven by institutional entry prompted by the GENIUS Act, the global stablecoin market cap could surge from the current $310 billion to $500 billion by the end of 2026. This divergence—“risk assets retracing, payment infrastructure expanding”—confirms that capital is shifting from pure speculation to embedded financial scenario building.

For traders, BTC and ETH are increasingly important as collateral in arbitrage activities involving the minting and burning of compliant stablecoins. When the premium on compliant stablecoins rises, on-chain minting demand will drive ETH gas consumption and liquidity migration of BTC-pegged tokens.

Exchange Compliance Strategies: Gate’s Response Path

In response to the structural changes brought by the GENIUS Act, Gate.io remains committed to prioritizing user asset safety and compliant operations. Against the backdrop of clearer federal stablecoin regulations, Gate.io is adopting a three-pronged strategy:

• Listing Standards Upgrade: Only stablecoins with transparent reserve audits, clear issuer qualifications, and compliance with 1:1 backing will be eligible for trading pairs such as USDT/USDC and other compliant stablecoins.
• Transparency in Disclosure: Actively tracking and publicly sharing updates on the GENIUS Act progress of major stablecoin issuers to help users identify potential non-compliance risks.
• Reserve Asset Verification Tools: Leveraging Gate.io’s mature Merkle tree reserve proof system to provide users with verifiable asset verification tools. This not only demonstrates Gate’s responsibility to its users but also aligns with international compliance standards.

Conclusion: Compliance Is No Longer a Cost but a Competitive Barrier

The GENIUS Act marks the shift of stablecoins from “regulatory arbitrage tools” to “public financial infrastructure.” As FDIC, OCC, and CFTC release supporting detailed rules intensively in the first half of 2026, compliance capability will become the key differentiator between leading exchanges and fringe players.

For investors, understanding the GENIUS Act is no longer solely a legal team’s responsibility but a necessary part of evaluating the long-term value of crypto assets. In the era of digital dollars, only assets anchored in transparency, compliance, and liquidity efficiency can navigate the regulatory waves ahead.