US President Donald Trump signed the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act. The bill creates a federal regulatory framework for stablecoins and is the first significant crypto-related legislation to be signed into law.
The bill passed in the US House of Representatives with a resounding 308-122 vote, with nearly half the Democratic members supporting the initiative.
President Trump Signs The GENIUS Act
US President Donald Trump signed a law creating a regulatory framework for stablecoins, paving the way for the mainstream adoption of digital currencies. The bill, called the GENIUS Act, passed the House with overwhelming support and had already passed the Senate. President Trump stated while signing the bill,
“This afternoon, we take a giant step to cement American dominance of global finance and crypto technology as we sign the landmark GENIUS Act into law. They’ve come a long way since the Biden administration, when they had no idea what you were all talking about and half of you were under arrest for no reason.”
A Huge Win For Crypto
The GENIUS Act is being viewed as a huge win for the crypto industry, which has lobbied for a clear regulatory framework to gain legitimacy since 2009. The industry’s early days were marked by volatility, speculative chaos, and innovation. President Trump stated,
“This signing is a massive validation of your hard work and pioneering spirit. It’s good for the dollar and it’s good for the country.”
The bill creates a federal regulatory framework for stablecoins, requiring them to be fully backed by the US Dollar or similar liquid assets. It also mandates annual audits for issuers with a market capitalization exceeding $50 billion and establishes guidelines for foreign issuances. Prominent figures in the crypto ecosystem believe legislation like the GENIUS Act will enhance the credibility of stablecoins, making banks, retailers, and consumers more open to using them for fund transfers.
According to estimates, the stablecoin market, currently valued at around $260 billion, is expected to grow to $2 trillion by 2028, thanks to the new law. The law’s passing is the culmination of lobbying efforts by the industry, which donated millions to pro-crypto candidates and President Trump’s campaign. Trump thanked crypto executives present in the room for their support during the 2024 Presidential elections, stating,
“I pledged that we would bring back American liberty and leadership and make the United States the crypto capital of the world, and that’s what we’ve done.”
Criticism Of The Bill
Democratic lawmakers have been voicing concerns about the bill and the Trump family’s crypto project, World Liberty Financial. The project’s USD1 stablecoin has become one of the largest stablecoins in the world. Top Democrat in the House Financial Services Committee, Maxine Waters, flagged the potential conflict of interest on Thursday, and also highlighted concerns about foreign issuers. Waters stated,
“It leaves the door open for foreign firms that present a major national security threat, including targets of sanctions, all to appease those in the Trump family’s inner circle, which has ties to those shady entities.”
Democratic lawmakers also stated that the bill should have blocked big tech companies from issuing their own stablecoins. Scott Greytak, deputy executive director of Transparency International US, stated,
“By failing to close known loopholes and protect America’s digital dollar infrastructure, Congress has risked making the U.S. financial system a global haven for criminals and adversarial regimes to exploit.”
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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