GENIUS Act Passes Senate: What Stablecoin Regulation Means for Amazon, Walmart, and Banks

R Tamara de Silva

In June 2025, the U.S. Senate passed the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act by a bipartisan vote of 68–30. This groundbreaking bill marks the first time federal legislation explicitly addresses stablecoins—digital tokens pegged to the U.S. dollar. Its passage brings stablecoins under a clear regulatory framework. Specifically, the GENIUS Act recognizes "payment stablecoins" in federal law and creates rules similar to those governing traditional financial products. Senator Bill Hagerty, the bill’s sponsor, praised the Act, stating that it positions the United States as a global leader in crypto and enables near-instant payments for both individuals and businesses. Although the GENIUS Act must still clear the House of Representatives and receive presidential approval, its Senate passage clearly signals Congress’s seriousness about integrating stablecoins into the mainstream financial system.

From a legal standpoint, the GENIUS Act accomplishes two key goals. First, it creates clear rules for stablecoins. Instead of existing in a patchwork of state licenses and uncertain regulations, stablecoins now gain official status as legitimate payment tools under U.S. law. Second, the Act clarifies oversight responsibilities. It explicitly defines how federal agencies (like the Treasury and Federal Reserve) will coordinate with state regulators to supervise stablecoin issuers. In other words, the Act answers the long-standing question of “who’s in charge” of USD stablecoins. This newfound clarity may accelerate stablecoin adoption. As Senator Hagerty noted, businesses of all sizes could soon settle payments almost instantly using legally recognized stablecoins. Ultimately, the GENIUS Act moves stablecoins from an unregulated niche into the mainstream financial system, treating them as important instruments deserving thoughtful regulation.

What the GENIUS Act Requires from Stablecoin Issuers

The GENIUS Act doesn’t just legalize stablecoins, it imposes robust standards to protect consumers and financial stability. Who can issue a stablecoin under the Act? In broad terms, banks, fintech companies, and qualified state-regulated institutions would all be eligible to issue payment stablecoins if they meet the Act’s requirements. This means federally insured banks could launch stablecoins (with regulators’ blessing), and non-bank companies (from fintech startups to possibly large tech firms) could also issue stablecoins provided they obtain a license either federally or via a state with equivalent standards. The inclusion of state-qualified entities is important; it lets trusted state-chartered firms (for example, trust companies in states like New York that have existing stablecoin oversight regimes) continue operating under state supervision, as long as those regimes are “substantially similar” to federal rules. In effect, GENIUS Act creates pathways for both traditional financial institutions and new entrants to participate in the stablecoin market – but with guardrails.

The GENIUS Act’s guardrails are thorough. Issuers must fully back every stablecoin with high-quality reserves, on a strict 1:1 basis. Practically, this means issuers must hold one real U.S. dollar, or an equally safe asset, such as a short-term Treasury bill, for each digital dollar in circulation. Fractional reserves or speculative investments like corporate bonds, stocks, or exotic assets are strictly prohibited. This prevents the risk that holders might be unable to redeem their stablecoins during a crisis, as has happened previously with poorly backed digital tokens.

Transparency and auditing form another key component. Every stablecoin issuer must disclose the composition of their reserves publicly each month. Users and regulators can then verify exactly what assets, cash, Treasury bills, or equivalents, support the stablecoins. Additionally, larger issuers (those with more than $50 billion outstanding) must undergo yearly audits by registered accounting firms. Regular audits and disclosures increase accountability. They also reduce the risk that issuers might conceal financial instability or mislead the public about their tokens’ safety.

The Act also explicitly requires issuers to follow strict financial crime regulations. All stablecoin issuers must implement anti-money-laundering (AML) programs and comply fully with U.S. sanctions laws, just as banks do. Issuers must also possess the technology to freeze or seize tokens involved in illegal activities when ordered by law enforcement. This power to intervene in transactions is a significant shift from cryptocurrency’s early, largely unregulated era. Stablecoin transactions are no longer assumed irreversible. Instead, the GENIUS Act requires issuers operating in the U.S. to block illicitly obtained funds when lawfully directed just like traditional banks. Finally, the Act grants the Treasury Department authority to bar foreign stablecoins whose issuers refuse to comply with U.S. legal orders. This provision prevents potential loopholes, where offshore tokens might otherwise evade U.S. laws.

Other safeguards in the law further protect consumers. For example, stablecoin issuers cannot pay interest on tokens. This rule maintains a clear distinction from traditional bank deposits and prevents issuers from taking excessive risks. Additionally, issuers can't require customers to buy other products or services as a condition of using their stablecoin. If an issuer becomes bankrupt, stablecoin holders have a senior claim to the reserve assets, giving them priority protection.

Overall, the Act encourages stablecoins to flourish within strict, bank-like safety standards. At the same time, it closes doors to new forms of financial abuse. For potential issuers, whether established banks or fintech startups, the message is clear: maintain full reserves, openly disclose your financials, follow the law, and you can operate legally. This regulatory clarity will likely encourage more established companies to enter the stablecoin market. Corporate treasurers and compliance teams will no longer have to lose sleep over uncertain legal terrain.

Retail Giants Exploring Stablecoins to Cut Fees: Hype or Reality?

Perhaps the most striking development linked to the GENIUS Act involves Amazon and Walmart reportedly exploring their own USD stablecoins. According to a recent Wall Street Journal article, these retail giants are "considering issuing their own stablecoins" in the United States. Their goal is clear: bypass traditional payment channels. Currently, credit card networks and banks collect billions from merchants through processing fees. By adopting dollar-pegged digital tokens, Amazon and Walmart could settle payments directly, using blockchain rather than swiping cards. This would effectively eliminate fees from Visa, Mastercard, and banks.

But is this already happening, or is it merely speculative? For now, it seems both companies are in the research stage rather than actively rolling out new products. The WSJ notes that Amazon and Walmart are "early" in their planning. They might launch privately branded tokens or partner with established stablecoin providers. Importantly, these plans appear tied to regulatory clarity. The retailers seem unlikely to proceed until the GENIUS Act or similar regulation fully becomes law. Amazon won't launch an "AmazonCoin" until it's certain the move is legally sound. Senate passage of the GENIUS Act was crucial, but as of June 2025, the bill still awaits final approval.

Neither Amazon nor Walmart has officially confirmed these reports. A Walmart spokesperson declined comment, and Amazon has not responded to inquiries. Their silence strongly suggests no official project is currently underway. Yet the very fact that respected sources like the WSJ and multiple crypto news outlets report on these considerations indicates genuine corporate interest. At present, the stablecoin plans seem strategic and preliminary rather than finalized. Think of it as Amazon and Walmart carefully examining an emerging financial tool. Both retailers have previously experimented with proprietary payment methods—Walmart, for instance, already has its own MoneyCard and financing programs. What's different this time is the technology (blockchain tokens) and the sheer scale of ambition: redirecting potentially vast sums of U.S. consumer spending onto new payment rails.

To summarize clearly, the claim that "Amazon and Walmart are building their own stablecoins" is partly accurate but premature. Yes, they are reportedly exploring stablecoins to slash payment costs. But no evidence yet exists of a launched product or official confirmation. This is certainly a trend worth watching. If and when the GENIUS Act becomes law, these companies might quickly transition from exploration to action. For now, however, an Amazon or Walmart stablecoin remains firmly in the realm of corporate planning and informed speculation—not yet something consumers can spend

The Anatomy of Card Payment Fees – Why Merchants Seek Alternatives

To understand why Amazon and Walmart may consider stablecoins, it helps to appreciate the high cost of current card payments. Each time a consumer uses a credit or debit card, merchants pay a fee, typically 2% to 3% of the purchase amount. These fees add up quickly, costing U.S. merchants approximately $224 billion in 2023 alone.

The largest portion, called the interchange fee (about 1.5%–2%), goes directly to the customer’s card-issuing bank. Card networks like Visa and Mastercard take a smaller assessment fee (~0.1%), and payment processors such as Stripe or PayPal collect roughly 0.2%–0.5% plus a small fixed amount per transaction.

For example, on a $100 transaction, about $1.80 might go to the issuing bank, 10–20 cents to Visa or Mastercard, and about 40 cents to the processor. Because these fees are effectively built into consumer prices, major retailers continually look for ways to cut costs—and stablecoins could offer an attractive alternative.

How Stablecoins Could Reshape the Payments Cost Structure

Stablecoins offer a compelling alternative to traditional card payments. Instead of banks, card networks, and processors each taking a cut, stablecoin transactions can settle instantly and cheaply. Merchants could pay mere fractions of a cent per transaction, sharply reducing current processing costs of 2–3%.

The immediate benefit is clear: major savings. Large retailers like Amazon and Walmart could save billions annually by shifting from card payments to stablecoins. Transactions occur directly on blockchain ledgers without intermediaries, speeding settlement and improving merchants’ cash flow. Refunds and returns also become immediate, enhancing the customer experience.

Perhaps most significantly, stablecoins reduce reliance on banks. Currently, banks earn substantial revenue from interchange fees and benefit from holding merchant deposits. With stablecoins, companies like Amazon and Walmart could directly control payment flows, keeping more funds out of banks and limiting banks’ fee income.

Additionally, retailer-issued stablecoins provide businesses greater control over their payment experience. Like Starbucks’ successful prepaid app, stablecoins could create transferable digital currencies that extend beyond a single merchant's ecosystem. Retailers could also retain interest on stablecoin reserves, income currently captured by banks or third-party issuers.

Stablecoins may not replace Visa or Mastercard immediately, but their adoption could significantly disrupt financial dynamics. Merchants primarily aim to reduce interchange fees paid to banks, fundamentally altering payment economics. In short, stablecoins promise lower costs, faster transactions, and greater financial control for retailers, potentially shifting the balance of power away from traditional intermediaries.

Real-World Stablecoin Initiatives: From Banks to Fintech

Stablecoins are already in active use by leading fintech firms and major banks. Several high-profile examples illustrate the diverse ways businesses leverage these digital dollars.

In December 2024, Ripple launched Ripple USD (RLUSD), a stablecoin approved by the New York Department of Financial Services. RLUSD is fully backed 1:1 by traditional USD assets like cash and Treasury bills. Ripple designed RLUSD as an enterprise-grade stablecoin for efficient global transfers, operating across Ethereum and Ripple’s own XRP Ledger. Its availability on exchanges like Bitstamp and Bitso targets both institutional and retail users, bridging crypto markets and traditional finance.

Major banks are also adopting stablecoins. JPMorgan Chase introduced JPMD, a deposit token representing bank deposits on blockchain infrastructure. JPMD, launched on Coinbase’s Ethereum-based Base network, allows institutional clients to instantly transfer funds and settle transactions. JPMorgan’s move demonstrates traditional banks embracing stablecoin technology for efficiency and speed.

Other prominent examples include PayPal’s stablecoin, PayPal USD (PYUSD), introduced in 2023. Issued by Paxos Trust, PYUSD facilitates instant payments and transfers for PayPal and Venmo users, with plans to expand globally. Circle’s widely used USDC stablecoin is another significant case. Visa has piloted USDC for cross-border settlements, and fintech firms like Robinhood and Stripe use USDC for rapid payments. Even Tether (USDT), historically offshore, is exploring U.S.-compliant products due to increasing regulatory clarity.

Together, these examples highlight stablecoins’ expanding role in retail payments (PayPal), institutional finance (JPMorgan), and crypto liquidity (Ripple, Circle). Stablecoins are no longer niche crypto experiments. Instead, they are strategic financial tools embraced by banks, fintechs, and regulated entities, poised for even broader adoption under clear frameworks like the GENIUS Act.

Stablecoins as Strategic Tools – Implications for Merchants, Consumers, and Finance

Stablecoins are not just another financial innovation in that they may significant economic implications. They may also represent a fundamental shift in how financial transactions.

Merchants, especially large retailers, currently pay over $100 billion annually in card fees. Stablecoins could substantially reduce these costs, improving profitability and enabling lower consumer prices. By adopting stablecoins, retailers could regain control over payment processing, much like companies previously brought logistics operations in-house to cut expenses.

For consumers, however, stablecoins initially lack the clear incentives that credit card rewards provide. Analysts predict retailers may bridge this gap by offering special discounts or loyalty rewards to encourage stablecoin use. Starbucks already demonstrates how successful a retailer-driven payment system can be when rewards align well with consumer behavior. As stablecoins take hold, traditional bank-funded reward points could diminish, replaced by merchant-specific incentives like exclusive discounts or credits.

On a broader scale, widespread stablecoin adoption would significantly impact the financial industry. Payment processing could become decentralized among tech companies and retailers but consolidated away from traditional banks. Banks, facing the loss of fee revenue and deposits, might respond by issuing their own stablecoins or partnering with merchants.

From a regulatory standpoint, increased stablecoin use will attract close scrutiny from policymakers and the Federal Reserve. While regulators may be wary of substantial funds sitting outside traditional banking channels, clear legal frameworks, such as those established by the GENIUS Act, may help manage risks by requiring full transparency and adequate reserves.

In short, stablecoins have moved beyond a technological novelty to become strategic tools in commerce and finance. The GENIUS Act’s progress shows policymakers recognize stablecoins’ potential benefits and seek to integrate them safely into the financial system. Retail giants eagerly await this clarity, positioning themselves to leverage stablecoins to reshape the payment landscape. For banks, fintech companies, and retailers alike, the decisions made now will define competitive opportunities for years to come.

If your business is exploring stablecoins, digital payments, or digital asset regulations, our firm can help. De Silva Law Offices has closely monitored this space since 2018, guiding clients through critical regulatory developments. Contact us to discuss how these changes may affect your business.

References:

U.S. Senate passes GENIUS Act stablecoin bill

Senate Banking Committee – GENIUS Act Myth vs. Fact  

Anton Golub (industry expert) on stablecoin issuance and fees  

WSJ "Walmart and Amazon Are Exploring Issuing Their Own Stablecoins

Coindesk  “Walmart, Amazon Mull Stablecoins to Bypass Card Fees”  

Investopedia  “Walmart and Amazon Consider Stablecoins to Cut Fees”  

Axios “Why retailers are looking into stablecoins”

NACS/MPC Data on 2023 card swipe fees ($143B interchange) 

The Defiant  “Ripple’s RLUSD approved by NYDFS”

Decrypt “JPMorgan’s JPMD deposit token on Base”

Stripe Explanation of merchant fee components

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