President Trump Signs GENIUS Act into Law: A Step for Cryptocurrency Regulation
New Federal Framework Regulates Stablecoins, Fostering Innovation While Enhancing Consumer Protections and Financial Stability
On July 18, 2025, President Donald J. Trump signed the Guiding and Establishing National Innovation for U.S. Stablecoins Act, commonly known as the GENIUS Act, into law at the White House. This marks the first major federal legislation in the United States specifically aimed at regulating stablecoins, a type of cryptocurrency designed to maintain a stable value by being pegged to assets like the U.S. dollar.
What is the GENIUS Act?
The GENIUS Act establishes a national framework for stablecoins, focusing on consumer protection, financial stability, and innovation. Key provisions include:
Requiring stablecoin issuers to back their coins with 100% reserves in liquid assets, such as cash or U.S. Treasuries.
Mandating compliance with anti-money laundering rules and sanctions under the Bank Secrecy Act to prevent illicit activities.
Requiring monthly public disclosures of reserves and prioritizing stablecoin holders in case of issuer insolvency.
Enhancing oversight by the Treasury Department and promoting interoperability among stablecoin issuers.
This law aims to protect consumers, ensure the U.S. dollar remains the global reserve currency in digital form, and position the United States as a leader in the cryptocurrency industry.
The Path to Passage
The GENIUS Act, introduced as S.1582 in the 119th Congress, began its journey in the Senate on May 1, 2025. It gained momentum amid growing calls for regulatory clarity in the crypto sector, especially after President Trump's executive order in January 2025 emphasizing digital asset innovation.
The bill advanced through congressional committees, with strong support from Republicans and some Democrats. On July 17, 2025, it passed the House of Representatives with a bipartisan vote of 294-134, including 78 Democrats joining the majority. The Senate had approved it earlier, paving the way for quick enactment.
House Financial Services Committee Chairman Patrick McHenry and others commended the bill's passage, highlighting its role in fostering innovation while combating fraud.
The Signing Ceremony
President Trump signed the bill during a ceremony in the East Room of the White House on July 18, 2025, surrounded by lawmakers, cryptocurrency industry leaders, and supporters. This fulfilled a campaign promise to boost the digital asset industry and reflected the administration's pro-crypto stance.
In a White House fact sheet, the administration described the act as a "watershed moment" for crypto, emphasizing its benefits for economic growth and national security. The signing coincided with a surge in crypto markets, with Bitcoin reaching new highs and the overall market cap approaching $4 trillion.
Looking Ahead
The GENIUS Act is seen as a foundational step toward broader crypto regulation, with industry experts noting it could pave the way for future bills like the CLARITY Act. While it focuses solely on stablecoins and does not address other cryptocurrencies like Bitcoin, it represents a significant win for the sector, promoting trust and mainstream adoption.
It’s only true freedom when there is no tax liabilities and only total ownership and value in favor of the owner. Otherwise it’s just another incentive to get more money to government.