For Niall Dennehy, co-founder of Nestifi, the GENIUS Act represents a defining regulatory moment, transforming stablecoins from a grey-area innovation into a legitimate financial tool supported by clear federal standards.
Enacted in July 2025, the legislation introduces the first comprehensive U.S. framework for “payment stablecoins” or digital tokens fully backed 1:1 by reserves like cash or U.S. Treasuries and pegged to national currencies. Under the Act, only licensed and regulated entities are permitted to issue stablecoins, and issuers must adhere to strict requirements including full reserve backing, monthly disclosures, and compliance with U.S. law.
Dennehy sees this not as a constraint, but as long-overdue infrastructure. 
“This is one of the most transformative moments in fintech regulation for over a decade.”
The GENIUS Act closes a critical gap that left startups and developers uncertain about how to legally build with stablecoins in the U.S. It introduces a rulebook that supports innovation by removing ambiguity and elevating trust.
“Until now, stablecoin issuers operated in a grey area. The GENIUS framework changes that.”
Transparency is a core feature of the new regime. While some may view mandatory disclosures as a compliance burden, Dennehy frames it as a strategic advantage.
“This is the dawn of truly transparent money. For the first time, we have a payment rail where any user can verify the system’s solvency in real time.”
That transparency sets stablecoins apart from traditional payment systems, where financial opacity remains the norm. It enables use cases that require real-time trust, particularly in cross-border payments, programmable finance, and embedded financial applications.
The GENIUS Act also helps resolve regulatory arbitrage. Under the new rules, offshore stablecoin providers can no longer operate in the U.S. without oversight, creating a level playing field and enabling stronger collaboration between startups and institutions.
“Stablecoin market cap is climbing, and even traditionally cautious players are now embracing digital currency innovation.”
Dennehy points to the increasing participation of major financial brands and technology platforms as further validation. From PayPal to fintech infrastructure providers, the stablecoin ecosystem is maturing fast.
But for startups, regulatory compliance brings a new strategic question: build or partner? Dennehy’s advice is clear.
“Your competitive advantage isn’t going to come from running a compliant financial institution. Let partners handle the regulatory overhead so you can focus entirely on product, growth, and your core mission.”
With platforms like Nestifi focused on unlocking the potential of regulated digital money, the GENIUS Act opens the door to faster experimentation, greater interoperability, and deeper trust.
For entrepreneurs, the message is straightforward: regulation is no longer the barrier. It’s the foundation. The question now is not can you build, but what will you build next?
