The GENIUS Act, passed in July 2025, is the U.S.’s first law focused on regulating payment stablecoins. Unlike broader crypto legislation, it is focused on stablecoins used as a means of settlement.That means GENIUS regulates the digital dollars people use to move value through the system, not the entire crypto ecosystem.
For Re, this focus matters because our users bring third party USD stablecoins into the platform as their onramp capital. By imposing standards on how those stablecoins are issued, backed, and custodied, GENIUS makes the assets moving through the Re protocol more transparent, and standardized. At the same time, Re sits above that money layer. We do not issue payment stablecoins ourselves, and our receipt tokens are not designed to be payment stablecoins under the Act.
Focus on Payment Stablecoins
GENIUS creates a unified federal framework for payment stablecoin issuers and the coins they issue. Only stablecoins from approved banks, or state-chartered issuers that meet federal standards qualify as payment stablecoins. These coins have to be backed 1:1 by liquid assets like bank deposits. Issuers are constrained to issuing and redeeming stablecoins and managing the reserves. Payment stablecoins cannot be marketed as yield bearing products.
However, GENIUS does not regulate non-payment stablecoins such as algorithmic stablecoins, and it does not govern DeFi protocols, and tokenized RWAs. The Act is deliberately scoped to the digital cash layer of the crypto stack. Assets above that layer, like insurance-linked products, remain subject to existing securities, commodities, insurance, and other financial regulations.
What Re’s Platform Does
Re is a decentralized reinsurance platform that connects onchain capital to real world insurance programs. Today, users typically enter through third party USD payment stablecoins such as USDC or other regulated stablecoins. These coins are issued and backed by external entities that will now be governed by GENIUS. When a user deposits, those stablecoins become part of Re’s reinsurance capital pool, forming the collateral that backs reinsurance agreements.
Re then mints receipt tokens that represent the user’s position in the pool and the risk return profile they have chosen. reUSD is designed for principal protected exposure with stable yield, while reUSDe takes on higher risk for higher potential returns. These tokens track the economics of underlying insurance performance rather than a fixed $1 peg.
Re’s receipt tokens are not payment instruments. You do not use reUSD to buy coffee or pay salaries. You hold it as an onchain representation of reinsurance exposure. That distinction places reUSD and reUSDe outside what GENIUS is concerned with.
What GENIUS Means for Re
For Re, the most immediate impact of GENIUS is that the payment stablecoins our users deposit will be issued under more uniform rules. Issuers must hold 1:1 reserves in cash and liquid assets, and provide regular disclosures. That gives us greater confidence that each dollar denominated stablecoin entering our pools is truly backed.
The Act’s limits on what payment stablecoin issuers can do shows that Re operates on a different layer. Issuers are confined to issuance, redemption, and reserve management. They are not meant to act as broad investment platforms. Re does not issue payment stablecoins or compete with them. We transform payment stablecoins into reinsurance capital which are subject to insurance regulation.
Strengthens Re’s Vision
Re’s core business, reinsurance, is already regulated. Insurance and reinsurance markets operate under the oversight from state insurance departments and federal agencies. When an insurer cedes risk to a reinsurer, regulators look at how that risk is transferred, how collateral is posted, and how claims will be honored.
Blockchain does not replace any of this. Instead, blockchain infrastructure makes capital deployment, accounting, and transparency more efficient. In that sense, the GENIUS Acts fits within our company worldview. We believe clear regulation increases trust in both the crypto and reinsurance stacks, and makes it easier for institutional capital to participate and for risk managers to underwrite.
For Re, the GENIUS Act is a net positive. It strengthens and standardizes the stablecoin layer that our users rely on to move dollars into our capital pool.