‘Genius Stable coin Act’ Passed! What’s Essential Now? : Online Identity Verification Cuts Over 50% of Operating Costs

Online Identity Verification Cuts Over 50% of Operating Costs with Online Authentication Services

On Tuesday, the U.S. Senate passed the “Genius Act” with 68 votes in favor and 30 against. This groundbreaking legislation allows private companies to establish federal-level safeguards for stable coins and issue digital dollars with the approval of the U.S. government.

The bill marks a historic turning point in the cryptocurrency industry. Backed by approximately $250 million in campaign contributions from the crypto sector during the 2024 U.S. elections, the industry has succeeded in forming the most pro-crypto congressional coalition in American history. This milestone also aligns with the broader vision of building a digital asset empire, heavily championed by former President Donald Trump.

Senator Kirsten Gillibrand of New York emphasized, “The Genius Act will protect consumers, promote responsible innovation, and defend the dominance of the U.S. dollar.”

While it remains uncertain whether the House of Representatives will pass the bill, the act is already seen as a pivotal moment in both technical and policy developments related to digital assets.

The term “GENIUS” stands for Guidelines for National Innovation and U.S. Stable coins, offering a comprehensive regulatory framework for the stable coin industry. Key provisions of the bill include:

• Full-reserve issuance requirements

• Mandatory monthly audits

• Strict compliance with Anti-Money Laundering (AML) regulations

Moreover, the bill opens the door for a variety of private entities including banks, fintech firms, and major retailers to issue their own stable coins or integrate them into existing payment systems.

This legislation holds significance for both the cryptocurrency and traditional financial sectors, and is expected to serve as a key instrument in solidifying the global dominance of the U.S. dollar in the digital economy.

What Is a Stable coin?

A stable coin is a type of digital asset designed to minimize price volatility by pegging its value to a legal tender (e.g., USD, EUR) or other assets such as gold or securities.
Unlike traditional cryptocurrencies like Bitcoin or Ethereum, stable coins maintain relative price stability and are widely used as a foundational currency within payment systems and virtual asset ecosystems.

Development Stages of Stable coins

1. First Generation: Fiat-collateralized stable coins backed 1:1 by legal tender
   Example: Tether (USDT)

2. Second Generation: Algorithmic stable coins
   Example: Terra (LUNA/UST)

3. Third Generation: Regulatory-compliant stable coins, often discussed alongside Central Bank Digital Currencies (CBDCs)

In recent years, as financial regulations around digital assets tighten, the importance of transparency and regulatory oversight has grown. Stable coin issuers are now expected to meet increasingly stringent compliance standards.

If You Are a Company Issuing Stable coins

You will need to address the following:

• Regulatory review and approval processes

• Securing transparency in asset backing structures (e.g., deposits, reserves)

• Clear documentation of issuance, burn, and redemption mechanisms

• Implementation of real-time reporting and integrated accounting systems

For Companies Handling Stable coins (Wallets, Payment Platforms, Exchanges)

• Inspect trading structures involving stable coins

• Identify and filter stable coins subject to specific regulatory requirements

As stable coins become a central component of the digital finance landscape, adherence to regulatory frameworks and robust transparency practices will be critical for ecosystem trust and operational continuity.

Why Is eKYC solutions Essential Now?

With the issuance of stable coins and digital dollars accelerating, eKYC (Electronic Know Your Customer) is no longer an option it's an essential infrastructure for the digital asset ecosystem. Here's why:

• A Core Tool for AML Compliance
  eKYC helps block illicit funds by verifying users’ real-name information and meeting Anti-Money Laundering (AML) standards.

• Secure Ownership and Traceability of Digital Assets
  By clearly identifying transaction participants, eKYC helps reduce fraud, multi-account abuse, and money laundering risks.

• The Foundation of online Finance
  Since most global fintech and crypto services operate remotely, a secure user identification system is indispensable.

• Earning Regulatory Trust and Approval
  Government-backed stable coins must meet KYC requirements set by regulatory authorities eKYC enables this quickly and efficiently.

Now that the digital dollar era is underway and regulatory frameworks are being solidified, eKYC is a core pillar of digital trust, security, and compliance. It is the identity infrastructure of the digital age.

Global Identity Verification Is Done Right at ARGOS

ARGOS’s ID check offers a robust eKYC-based identity verification solution that enables businesses to perform customer authentication safely and efficiently.

Unlike solutions that only rely on OCR (optical character recognition), ARGOS ID check applies AI-powered document authenticity checks and liveness detection to effectively block identity forgery and fraud.

All in One eKYC Technology

Many companies piece together different solutions for ID verification, face recognition, and liveness detection often resulting in fragmented and costly systems.
ARGOS provides a unified, end-to-end service for online identity authentication, enabling businesses to cut costs and deploy faster.

The Key Advantage: Reduce Total Cost of Ownership (TCO) by Over 50%

Why is this possible?

Because once identity services go live, real world operational issues like policy changes, exception handling, and customer support inevitably arise.
ARGOS’s solution goes beyond simple API integration and supports the full lifecycle: from policy design to exception management and real-time operational response.

Trusted by Financial Institutions and Virtual Asset Operators

ARGOS’s eKYC technology supports the development of secure and compliant customer identification systems for businesses that require regulatory approval especially those in digital finance and crypto.

If you're looking to implement a safer, faster, and more cost-effective self-authentication system, ARGOS ID check is your best solution.

Start your journey with ARGOS today!