GENIUS Act Signed Into Law: What It Means For Lorenzo, USD1+ OTF, And Stablecoins
The United States has taken a decisive step toward becoming the world’s leading hub for digital asset innovation. On Friday, President…
The United States has taken a decisive step toward becoming the world’s leading hub for digital asset innovation. On Friday, President Donald Trump signed the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act into law, marking the nation’s first comprehensive regulatory framework for U.S. dollar-backed stablecoins.
The legislation paves the way for traditional financial institutions, technology companies, and crypto-native issuers to develop compliant, fully backed stablecoins. It also provides the foundational legal clarity that many market participants have long awaited.
A senior Treasury official called the move “a profound shift” for both dollar dominance and U.S. debt demand, while SEC Chairman Paul S. Atkins described it as “a monumental step forward” that sends a clear message:
“America is ready to embrace crypto asset innovation.”
Lorenzo Protocol: Bridging Institutional Yield with Tokenized Finance
At Lorenzo Protocol, we view the GENIUS Act as a pivotal regulatory milestone that unlocks the full potential of tokenized finance, immediately expanding stablecoins’ present-day adoption potential.
As a YZi Labs (previously Binance Labs)–backed team with a strategic presence across the United States and Asia-Pacific, the Act’s legal clarity empowers our U.S.-based contributors to move faster and scale with confidence. With momentum building in both markets, we’re advancing our efforts to bridge Eastern and Western crypto economies by delivering institutional-grade yield products through secure, compliant on-chain infrastructure.
Our Financial Abstraction Layer (FAL) is designed to channel stablecoin capital into sophisticated CeFi strategies such as staking, arbitrage, and quant trading. These are structured into On‑Chain Traded Funds (OTFs), which package multiple yield sources into tradable tokens and make institutional-grade income strategies accessible to all types of users.
Our flagship USD1+ OTF product, now live on mainnet, is based on a triple-yield strategy that combines real-world assets, CeFi quantitative strategies, and DeFi returns.
All performance is settled in USD1, the U.S. dollar–pegged stablecoin issued by World Liberty Financial, a company inspired by the Trump family. By standardizing USD1 settlement across our products, we align with the GENIUS Act’s priorities: transparency, compliance, and robust financial infrastructure centered around stablecoin adoption.
More than a yield product, the USD1+ OTF supports our long-term vision to operate as an on‑chain investment bank serving both institutional and retail users. Looking ahead, we’re expanding our tokenized offerings across DeFi, quantitative strategies, RWAs, and more.
In this new era of regulatory certainty, we’re proud to be building in alignment with policy. By integrating with trusted infrastructure like USD1 and operating within evolving legal frameworks, Lorenzo Protocol is helping transform stablecoins into powerful engines of on-chain financial opportunity for Eastern and Western markets.
Institutional Clarity Unshackles Stablecoins
The GENIUS Act gives the Office of the Comptroller of the Currency (OCC) regulatory authority over stablecoin issuers and sets strict standards for reserve backing. Issuers must hold fully liquid assets such as cash or short-term U.S. Treasuries and submit to annual audits if they circulate more than $50 billion in tokens. The law also establishes a baseline for state and federal coordination, removing the fragmented regulatory patchwork that has long complicated U.S. stablecoin issuance.
Its impact is already visible. Executives at JPMorgan, Bank of America, and Citigroup have expressed interest in launching stablecoins, while companies like Amazon, Walmart, and Apple are reportedly exploring the integration of stablecoin payments and rewards.
The GENIUS Act elevates stablecoins to a legally recognized layer of the U.S. financial system. With clear standards and protections in place, businesses can now integrate stablecoin payments with confidence, institutions can unlock new efficiencies in settlement and treasury workflows, and consumers gain safer, more accessible digital dollars. This newfound clarity transforms stablecoins from speculative tools into core financial infrastructure, powering faster, cheaper, and more transparent financial services at scale.
In the words of SEC Chairman Atkins:
“Together we will make America the center of crypto asset innovation and strengthen the financial markets for the benefit of all Americans.”
A New Chapter for U.S. Digital Finance
The GENIUS Act represents more than legislation. It signals that the United States is prepared to help lead the next generation of financial infrastructure. Stablecoins now have a defined legal status, opening the door for participation by banks, fintechs, and decentralized platforms.
For builders like us, this moment presents a clear opportunity to grow with confidence.
We’re committed to helping shape this future by offering products that connect traditional capital with on-chain innovation, unlocking meaningful financial access for users worldwide.
