A new federal regulatory framework for payment stablecoins marks a pivotal moment for digital assets in the United States by establishing a legal definition and oversight by banking regulators that may enable commercial scaling. The new GENIUS framework provides several pathways for institutions to become issuers, with regulatory oversight based on the issuer’s legal entity structure. It will create opportunities for a wider range of issuers in the U.S., including non-banks. The requirements generally take effect in late 2026 or early 2027, depending in part on when regulators issue implementation guidance. The GENIUS Act’s requirements will affect not only banks, but also non-bank issuers, payment processors, digital asset service providers, corporates, and customers. Each group faces unique operational, compliance, and business model decisions as they navigate the new framework and position themselves in the evolving stablecoin market. Each group also needs to consider risks in areas such as operations, cybersecurity, fraud, tax, regulation, and reputation. Subsidiaries of federally and state-chartered banks, non-bank entities, and uninsured national banks are among the entities eligible to become payment stablecoin issuers under the new regulatory framework. Issuers will be required to comply with prudential standards similar to those for traditional banks and to maintain one-to-one reserves of high-quality liquid assets, publish monthly attestation reports, and adhere to rigorous risk management and compliance measures. The act prohibits payment stablecoins from paying interest, although rewards may be offered by other parties. The requirements of the GENIUS Act will likely drive strategic decisions, significant operational changes, and new compliance processes regarding whether and how to participate in the stablecoin market. Companies that facilitate the transfer, settlement, or processing of payments also face strategic decisions about whether, when, and how to begin or scale payment stablecoin transactions. After evaluating the risks and opportunities, companies can take proactive measures to comply with the new regulatory framework now that payment stablecoins have been legitimized for use by financial institutions. Exchanges, custodians, and wallet providers will need to adjust their operations to meet the new regulatory standards, particularly related to risk management, reporting, and customer protection. They should prepare for the transition period by updating their compliance and risk management frameworks so that they only support or list stablecoins issued by entities that meet the new law’s standards. These providers should also monitor regulatory developments and adapt their offerings to remain compliant and competitive.