On Friday, July 18, 2025, President Donald Trump signed into law the GENIUS Act, marking the first major federal legislation regulating the cryptocurrency industry in the United States. The bill, which establishes a clear regulatory framework for stablecoins—digital currencies pegged to stable assets like the U.S. dollar—was hailed by Trump as "perhaps the greatest revolution in financial technology since the birth of the internet itself." The signing ceremony, held in the White House's East Room, gathered congressional leaders, industry executives, and crypto pioneers, underscoring the significance of this milestone for the digital currency sector.
The GENIUS Act, an acronym for Guiding and Establishing National Innovation for U.S. Stablecoins, aims to provide guardrails and consumer protections for stablecoin issuers. By creating a legal category for stablecoins and defining clear boundaries around their issuance, the law facilitates banks, credit unions, and other financial institutions to enter the market more confidently. This move is expected to increase public trust, fuel industry growth, and potentially transform how money moves in the U.S. economy.
President Trump, who once dismissed cryptocurrency as a "scam" but has since embraced it passionately during his 2024 campaign and second term, emphasized the administration’s commitment to making the United States the "crypto capital of the world." At the signing, he declared, "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." Trump also joked about the bill’s name, saying, "The GENIUS Act. They named it after me, you know."
The path to the bill’s enactment was far from smooth. After passing the Senate by a 68-30 vote in late June, the GENIUS Act faced hurdles in the House of Representatives. A group of hardline Republicans initially blocked a procedural vote, demanding stronger provisions against the creation of a central bank digital currency (CBDC). After intense negotiations, including late-night calls from the president and Vice President JD Vance, a compromise was reached to incorporate anti-CBDC language into related legislation, allowing the GENIUS Act to proceed. The House ultimately approved the bill on July 17 by a 308-122 vote, with bipartisan support including 102 Democrats.
Alongside the GENIUS Act, the House also passed two other cryptocurrency-related bills: the Digital Asset Market Clarity Act, which clarifies regulatory oversight between the Securities and Exchange Commission and the Commodity Futures Trading Commission, and the Anti-CBDC Surveillance State Act, which aims to prevent the Federal Reserve from issuing retail central bank digital currency. However, only the GENIUS Act reached Trump’s desk on Friday, with the other two bills awaiting Senate action.
Stablecoins, the focus of the GENIUS Act, are cryptocurrencies designed to maintain a stable value by being fully backed one-to-one by liquid assets such as U.S. dollars or short-term Treasury bills. This stability allows for rapid, low-cost transactions that settle almost instantly, a feature that could revolutionize payments for businesses and consumers alike. Dante Disparte, global head of policy at Circle—the largest U.S. stablecoin issuer—noted that dollar-based stablecoins "have really introduced quite a lot of new ways of moving money that don't take bank holidays," highlighting their potential to modernize financial transactions.
The stablecoin market is already substantial, valued at over $260 billion according to crypto data provider CoinGecko, and is projected by Standard Chartered Bank to grow to $2 trillion by 2028 under the new regulatory framework. The GENIUS Act requires issuers to maintain full reserves and publicly disclose their reserve compositions monthly, enhancing transparency and consumer confidence.
Despite widespread support, the legislation has drawn criticism, particularly over concerns of conflicts of interest involving the Trump family. The Trump-affiliated company World Liberty Financial holds a 60% stake in a crypto venture that launched USD1, a stablecoin pegged to the U.S. dollar. Critics, including Democratic Representative Maxine Waters and Senator Elizabeth Warren, have expressed alarm that the bill does not adequately address potential conflicts arising from the president’s and his family’s deepening ties to cryptocurrency ventures.
Warren warned that "through his crypto business, Trump has created an efficient means to trade presidential favors like tariff exemptions, pardons and government appointments for hundreds of millions, perhaps billions of dollars from foreign governments, from billionaires and from large corporations." She charged that the GENIUS Act "not only blesses this corruption, but actively facilitates its expansion." The White House has countered these allegations by stating that Trump’s assets are held in a trust managed by his children and that there are no conflicts of interest.
Trump’s crypto ventures extend beyond stablecoins. Earlier in 2025, he launched his own meme coin, $TRUMP, and established a bitcoin mining firm and a crypto reserve. He also signed an executive order creating a Strategic Bitcoin Reserve capitalized with bitcoins seized by the U.S. Treasury. At the signing, Trump praised the resilience of the crypto community, saying, "For years, you were mocked and dismissed and counted out. You were counted out as little as a year and a half ago. But this signing is a massive validation." Prominent crypto figures such as Cameron and Tyler Winklevoss and Brian Armstrong, who faced investigations under the previous Biden administration, were present at the ceremony, underscoring the administration’s shift toward a more crypto-friendly stance.
The Biden administration had taken a stricter approach toward cryptocurrency regulation, with former SEC Chair Gary Gensler pursuing numerous enforcement actions and establishing a special Department of Justice enforcement team targeting crypto firms. Since taking office for a second term in January 2025, Trump ended several of these investigations and suspended the enforcement team, signaling a pivot in policy.
Industry insiders see the GENIUS Act as a landmark step toward comprehensive crypto legislation in the U.S. Former House Financial Services Chair Patrick McHenry called it "the first step in deep crypto legislating," noting that it demonstrates Congress’s ability to enact significant policy despite political divisions. He also highlighted the bipartisan support for the bill as a hopeful sign for future crypto regulation.
However, concerns remain about the law’s loopholes. Transparency International’s Scott Greytak cautioned that the GENIUS Act "risks making the U.S. financial system a global haven for criminals and adversarial regimes to exploit" due to insufficient anti-money laundering protections and failure to block foreign stablecoin issuers. Critics also worry that the legislation could empower large corporations to issue their own private cryptocurrencies, potentially destabilizing the financial system.
Despite these controversies, the Trump administration and crypto advocates are optimistic about the future. The White House and key Republican senators aim to pass additional crypto market structure legislation by the end of September 2025, continuing the momentum generated by the GENIUS Act. As the law takes effect, federal regulators have six months to develop detailed rules, setting the stage for a new era in digital finance.
As the U.S. embraces this "exciting new frontier," the GENIUS Act’s passage signals that digital currencies are moving closer to mainstream acceptance. Whether the law will deliver on its promise to revolutionize payments while safeguarding consumers and the financial system remains to be seen, but for now, the crypto industry has secured a historic victory.
