FINTECH / by Javier Pérez Moreno
The Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act has taken a decisive step toward becoming the first comprehensive federal stablecoin law in the United States. On May 20, 2025, the U.S. Senate passed a key procedural vote (66–32), moving the bill into full debate, marking a pivotal moment in global financial regulation.
As the bill heads toward a final vote after the Memorial Day recess, its structure and intent send strong signals not only to U.S. markets but also to emerging fintech ecosystems in Latin America. For Mexico, the GENIUS Act serves as both a benchmark and a wake-up call.
What the GENIUS Act Proposes
Licensing of Issuers
Only U.S. domiciled banks, credit unions, and eligible nonbanks can issue “payment stablecoins.” Federal or state regulators oversee licensing depending on systemic importance.
Mandatory Reserves
Every stablecoin must be backed 1:1 by high-quality liquid assets like U.S. dollars or Treasuries.
Transparency & Oversight
Issuers with over $50 billion in market cap must undergo annual audits and provide monthly reserve disclosures.
AML/KYC Obligations
Stablecoin issuers must comply with strict anti-money laundering and identity verification protocols.
Consumer Protection
Advertising and terms of service must meet defined standards to protect users from hidden risks.
Latest Developments (May 21, 2025)
The GENIUS Act’s legislative momentum has already had a significant market impact. Bitcoin surged past $109,000 on May 21, driven by optimism over forthcoming regulatory clarity. Analysts now project that the stablecoin market could grow from $240 billion to $2 trillion by 2028, driven by institutional adoption enabled by a trusted legal framework.
Why Mexico Should Pay Attention
Given the deep economic linkages between the U.S. and Mexico, particularly the $60+ billion in annual remittances, the GENIUS Act will inevitably shape the dynamics of digital money movement across the region. It presents risks and opportunities:
Competitive Pressure
U.S.-regulated stablecoins may dominate regional use cases, sidelining Mexico-based solutions.
Innovation Drain
Fintechs may be incentivized to relocate to jurisdictions with clearer frameworks.
Cross-Border Compliance
U.S.-issued stablecoins could flow into Mexican systems, raising questions around interoperability, AML compliance, and monetary sovereignty.
Stablecoins and Remittances: A Critical Opportunity
One of the most promising applications of stablecoins lies in streamlining remittances. Mexico is the world’s second-largest recipient of remittances, and fintech startups have increasingly leveraged dollar-pegged stablecoins to reduce settlement times from days to seconds, while cutting costs compared to traditional intermediaries.
These digital rails allow for 24/7 processing, transparent fee structures, and real-time confirmation, benefits that help lower-income families dependent on monthly transfers. However, the lack of a stablecoin regulatory framework in Mexico creates legal uncertainty for firms building such solutions, even as U.S. law begins to clarify the path forward.
If stablecoins become a trusted and compliant medium of value transfer under U.S. law, they could dominate remittance corridors between the U.S. and Latin America, especially for players operating in fintech-friendly jurisdictions. Mexico has the chance to embrace these innovations by supporting local digital peso initiatives, or risk becoming merely a passive endpoint in the global stablecoin economy.
Banxico and CNBV: Current Landscape
Banxico maintains that stablecoins are not legal tender and that their issuance is restricted to regulated entities. The central bank has flagged the risk of monetary instability and unauthorized intermediation.
CNBV, Mexico’s financial regulator, currently lacks a tailored framework for stablecoins. However, its oversight of fintechs under the 2018 Fintech Law offers a possible foundation for expansion into digital asset regulation.
Both institutions have issued joint statements warning of the systemic and consumer risks associated with unregulated cryptoassets.
What Mexico Could Adopt
Regulatory Framework for Peso-Backed Stablecoins
Define requirements for reserve backing, licensing, and disclosures for digital tokens pegged to the Mexican peso.
Tiered Oversight
Use a proportional regulation model that could mirror the GENIUS Act to supervise small and systemically important stablecoin issuers.
Cross-Border Interoperability
Coordinate with U.S. regulators to ensure AML/KYC alignment and data-sharing protocols, especially in remittance channels.
Regulatory Sandboxes for Digital Peso Projects
Encourage experimentation via sandbox environments, including private sector trials of peso-linked stablecoins or tokenized payment networks.
Conclusion
The GENIUS Act may be U.S. legislation, but its consequences will be international. For Mexico, aligning with this regulatory trend is not only about compliance, it’s about remaining competitive in a digitizing economy and financial inclusion. Stablecoins could transform remittances and financial inclusion, but only if Mexico creates the legal structures to support innovation while protecting users.
Javier Pérez Moreno
Banking, Finance and Compliance Partner
Photo. Rights free.
For more information, contact us:
jperez@bgbg.mx
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