Washington D.C. – Paul S. Atkins, Chairman of the U.S. Securities and Exchange Commission (SEC), recently underscored the transformative potential of on-chain stablecoins in achieving instantaneous securities settlement. His remarks come on the heels of President Donald Trump signing the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act into law on July 18, 2025.
Chairman Atkins stated in a social media post, > "We can now move to an instantaneous, almost settlement payment versus delivery for securities, thanks to on-chain stablecoins." This statement reflects a significant shift towards embracing digital assets for core financial infrastructure. The SEC Chairman has previously directed his staff to explore guidance and rulemaking to accommodate SEC registrants utilizing payment stablecoins for settlement and margining.
The GENIUS Act, passed by the House on July 17 and the Senate on June 17, establishes a comprehensive regulatory framework for "payment stablecoins." These digital assets are defined as those used for payment or settlement, backed by low-risk reserves, and designed to maintain a fixed value relative to a national currency. Crucially, the Act clarifies that compliant payment stablecoins are explicitly not considered securities or commodities, thereby carving out their regulatory oversight from the SEC and CFTC.
This landmark legislation mandates that payment stablecoin issuers maintain 1:1 reserve backing, adhere to public disclosure requirements, and operate under federal or qualifying state regulatory supervision. The aim is to foster responsible innovation while ensuring consumer protection and financial stability. The Act is seen as a pivotal step towards integrating digital assets into traditional banking systems.
Industry experts anticipate that the GENIUS Act will accelerate the adoption of stablecoins as settlement rails, enabling "true atomic settlement" where both securities and cash move instantly on-chain. This could significantly enhance efficiency, reduce costs, and mitigate risks associated with the current multi-day settlement cycles in traditional securities markets. The new framework provides the regulatory clarity long sought by the digital asset sector.