A new era for digital payments: Stablecoins, the GENIUS Act, and a world of potential for sports organisations

Whilst the regulation of stablecoins and the newly enacted GENIUS Act in the United States does not specifically target the sports sector, its impact will likely be felt across every industry.  For sports clubs, leagues, and related organisations, the most immediate applications might arise in payments, fan engagement and sponsorship deals, especially at the intersect with global finance and digital innovation. Commercial teams at sports organisations will be interested to explore the new opportunities, while in-house legal teams will need to stay abreast of regulatory develops and sport-specific integration issues to assist commercial operations.  

This article explains what stablecoins are, how the new U.S. regulatory framework works, and the early-stage implications for sports organisations:

• Background
• Legislative process and context
• Overview of the GENIUS Act
  • Key definitions and characterization
  • Permitted issuers
  • Reserve and prudential requirements
  • Supervision and enforcement
  • Limitations on activities
• Implications for sports organizations
  • International operations
  • Treasury management and fan payments
  • Sponsorship and commercial deals