President Donald Trump signed the GENIUS Act into law on Friday, marking a significant legislative milestone in the regulation of digital currency in the United States. The legislation, officially known as the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, aims to create a clear and straightforward regulatory framework for stablecoins—digital currencies designed to maintain price stability by being pegged to assets like gold or the U.S. dollar.
Trump’s signing of the bill aligns with his earlier pledge to transform the United States into the ‘crypto capital of the planet,’ a promise he made during a keynote address at a bitcoin conference in Nashville, Tennessee, in July 2024. In that speech, he emphasized that the regulations his administration would implement would be ‘written by people who love your industry, not hate your industry.’
‘I pledged that we would bring back American liberty and leadership and make the United States the crypto capital of the world,’ Trump stated during the signing ceremony. ‘And that’s what we’ve done. Under the Trump administration, this is only going further.’ His comments reflect the administration’s commitment to fostering innovation in the cryptocurrency sector while ensuring regulatory clarity and protection for consumers.
The GENIUS Act includes several key provisions designed to enhance transparency and accountability within the digital currency sector. These include mandatory monthly public disclosure of reserve competition and annual audited financial statements for stablecoin issuers with market capitalizations exceeding $50 billion. These measures are intended to ensure that stablecoins operate under a framework that promotes trust and confidence among users and investors.
The legislation also addresses broader concerns about the regulatory environment for digital assets, signaling a shift towards a more supportive stance by the U.S. government. The House passed the bill by a 308–122 vote on Thursday, following its approval by the Senate in June. This bipartisan support underscores the growing recognition of the importance of digital currencies in the evolving financial landscape.
Despite the broad support, the bill did not secure unanimous backing within the Republican Party, with twelve members voting against it. Critics, including Rep. Maxine Waters, D-Calif., have raised concerns about potential conflicts of interest, particularly due to Trump’s promotion of a digital currency called $TRUMP. Waters criticized the legislation during a House floor speech, stating that it would be ‘OK with corruption, OK with foreign companies buying influence, and OK with criminals buying Trump coins to seek pardons and beneficial treatment.’
In addition to the GENIUS Act, the House passed two other measures related to cryptocurrency. The Digital Asset Market Clarity Act (CLARITY Act) aims to provide additional regulatory clarity for digital assets, while the Anti-CBDC Surveillance State Act seeks to prevent the Federal Reserve from directly issuing central bank digital currency (CBDC) to individuals, thereby safeguarding privacy concerns. These developments highlight the growing interest in shaping the regulatory landscape for digital assets, with the U.S. emerging as a key player in this global shift.
As the U.S. continues to navigate the complexities of digital currency regulation, the passage of the GENIUS Act represents a pivotal moment in the evolution of financial technology. With a clear regulatory framework in place, the potential for innovation and growth in the cryptocurrency sector is expected to expand, positioning the United States as a leader in the global digital economy.