New Stablecoin Law Enshrines Loopholes for Money Laundering and Sanctions Evasion
A statement from Transparency International U.S.
July 18, 2025
WASHINGTON, D.C. — Today President Trump signed into law the Guaranteeing Enforceable Necessary Inspections and Uniform Safeguards Act (“GENIUS Act”), a bill intended to establish new regulatory standards for stablecoin issuers and digital asset markets.
Scott Greytak, Deputy Executive Director of Transparency International U.S. (TI US), issued the following statement on the signing of the GENIUS Act into law:
The GENIUS Act risks now opening the door to a new era of illicit finance, enabling corrupt officials, America’s adversaries, and criminals around the world to abuse the U.S. stablecoin ecosystem to launder money, finance corruption, and evade U.S. sanctions. By failing to close known loopholes and protect America’s digital dollar infrastructure, Congress has risked making the U.S. financial system a global haven for criminals and adversarial regimes to exploit.
Transparency International U.S. and its partners urged Congress to incorporate sensible solutions into the GENIUS Act. Congress’s failure to include commonsense anti-money laundering and anti-sanctions evasion safeguards has now created a blueprint for those seeking to finance or conceal their crimes through stablecoins with impunity.
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Transparency International U.S. is part of the world’s largest coalition against corruption. In collaboration with national chapters in more than 100 countries, we are leading the fight to turn our vision of a world free from corruption into reality.
Related Resources
- Read the GENIUS Act as signed into law;
- Read a letter to Congressional leadership from organizations and individuals working to combat kleptocracy highlighting how the GENIUS Act would allow serious vulnerabilities in the U.S. financial system.
Media Contact
Gary Kalman, Executive Director, Transparency International U.S.
Telephone: +1 215-439-7090
Email: gkalman@us.transparency.org
Twitter: @TransparencyUSA
