London - BY Crypto Insider - Nov 25,2025

Since the GENIUS Act was signed in July, the stablecoin market has kept expanding, reserves have continued to flow into dollars and short-term Treasuries, and the digital-dollar economy has started absorbing a larger share of the very instruments that fund U.S. government spending, yet the most important change is not the market growth but the institutional shift hidden inside the law itself.

The Act places non-bank stablecoin issuers under the authority of the Office of the Comptroller of the Currency, and that single decision quietly brings the Treasury much closer to the creation and oversight of digital dollars than the Federal Reserve, altering who sits at the control panel of the next generation of money. The Fed, which historically guarded the perimeter of dollar creation, is no longer the sole gatekeeper in this digital space because the Treasury now has a direct line into how these dollar-backed instruments are issued, supervised, and allowed to operate.

And as stablecoins continue to expand globally, pulling more liquidity into U.S. dollars and Treasuries, the long-term consequence is that the balance of monetary influence begins to tilt toward the institution that controls fiscal strategy and debt issuance, not the one that sets interest rates.

In other words, while the GENIUS Act was sold as crypto regulation, its stronger effect is a quiet re-wiring of monetary authority, a realignment that shifts the centre of power away from the Federal Reserve and toward the U.S. Treasury, and this realignment is already underway.