The GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins Act), signed into law by President Trump in July 2025, establishes the first comprehensive U.S. federal framework for stablecoins. These are digital tokens pegged to fiat currencies like the U.S. dollar. Though not directed at the sports sector, its effects are likely to ripple across industries, offering new opportunities in payments, sponsorships, and fan engagement for sports organisations.
Stablecoins are blockchain-based digital assets designed to maintain a stable value, typically 1:1 with the U.S. dollar, enabling fast, low-cost global transactions. Their rapid growth and role in global finance prompted regulation to ensure market stability and consumer protection, following past failures such as TerraUSD (go look it up!). The GENIUS Act provides regulatory clarity, integrating stablecoins into the U.S. financial system and reinforcing the dollar’s global dominance in digital finance.
The Act defines payment stablecoins as fully backed, redeemable digital tokens used for payments or settlements. It distinguishes compliant, asset-backed tokens from algorithmic or partially collateralised ones, excluding the latter from its protections. Under the Act, stablecoins are not classified as securities, deposits, or commodities, ending years of legal ambiguity.
Only certain entities may issue stablecoins: (1) subsidiaries of federally regulated banks or credit unions, (2) federally licensed nonbank issuers supervised by the OCC, and (3) state-qualified issuers under strict conditions.
The Act prohibits the use of reserves for lending or speculation and enforces strong supervision, penalties, and transparency requirements to maintain trust and market stability.
So, why is this important?
For sports organisations, regulated stablecoins open up transformative possibilities. In international operations, clubs can settle cross-border player transfers, salaries, and media contracts faster and with reduced currency risk.
In treasury management, stablecoins provide a secure, dollar-backed digital cash equivalent for managing liquidity.
For fan engagement, they enable instant, low-cost payments for tickets, merchandise, and microtransactions while supporting loyalty and rewards systems.
Finally, in sponsorships, regulated issuers can partner with clubs as credible “official digital payment” brands, thus avoiding the reputational risks of earlier crypto deals.
In essence, the GENIUS Act legitimises stablecoins as a trusted, regulated payment medium. For the sports industry, it marks the beginning of a new financial era—where digital dollars can power global commerce, enhance fan experiences, and create innovative revenue opportunities.