In a sweeping move that could reshape the global financial system, President Donald Trump signed the GENIUS Act into law on July 18, 2025, establishing the first major U.S. regulatory framework for stablecoins. The legislation, officially titled the Guiding and Establishing National Innovation for U.S. Stablecoins Act, passed the House with a bipartisan vote of 308–122 after weeks of intense debate and negotiations. At a packed White House ceremony, Trump held up the signed bill and declared, “This could be perhaps the greatest revolution in financial technology since the birth of the internet.”
The signing marks the centerpiece of what lawmakers and the media are calling “Crypto Week” on Capitol Hill, with three major bills advancing new rules for digital assets. Among them, the GENIUS Act stands out as the law that opens the door for banks, credit unions, and fintech firms to fully enter the stablecoin market with federal approval and oversight.
What the GENIUS Act Does
The GENIUS Act lays out a comprehensive legal structure for stablecoins, which are a type of cryptocurrency tied to a stable asset, such as the U.S. dollar or Treasury securities. These coins are designed to maintain a consistent value, making them more reliable for payments and savings than volatile assets like Bitcoin.
Under the new law, stablecoin issuers will be required to back their tokens one-for-one with real, liquid assets. For large issuers with more than $50 billion in circulation, annual audits will be mandatory. The act also imposes consumer protection requirements, anti-money laundering standards, and clear rules about which entities are allowed to issue stablecoins.
President Trump said the law “creates a clear and simple regulatory framework to establish and unleash the immense promise of dollar-backed stablecoins.” He added, “This could be, perhaps, the greatest revolution in financial technology since the birth of the internet itself. A lot of people are saying that.”
What Is a Stablecoin?
Stablecoins are digital currencies that aim to provide the benefits of crypto—such as fast, low-cost global transactions—without the wild price swings that plague other coins. They are pegged to stable, real-world assets and are viewed as a bridge between traditional finance and the crypto world.
According to the GENIUS Act, only coins that meet strict asset-backing and liquidity requirements will be legally considered stablecoins in the U.S. This distinction is designed to prevent confusion in the marketplace and protect consumers from risky or misleading products.
Trump’s Personal Involvement and Political Strategy
President Trump was not just a passive observer in the bill’s progress. When a group of conservative lawmakers threatened to block a key procedural vote, Trump personally called them. “Hello, Jim, how are you? ‘Sir, you have my vote.’ Boom. ‘Sir, you have my vote,’” he recalled at the signing event. “Unfortunately, it’s always the same 12 people. But we got it done.”
Venture capitalist David Sacks, now serving as Trump’s crypto and AI adviser, credited the president directly. “Trump stepped in and saved this bill,” Sacks said. “This is a historical legislative achievement that will ensure U.S. dominance in the industry.”
The president also joked about the bill’s name, saying, “It’s a very important act. The GENIUS Act. They named it after me,” to laughter from the audience.
Vice President J.D. Vance, who reportedly worked behind the scenes to sway votes, was praised by Trump for “helping push the legislation through late at night.”
A Broader Crypto Agenda
The GENIUS Act was the first of three major bills passed as part of a broader effort to reshape U.S. crypto policy. The second, the Clarity Act, sets rules for defining digital assets as commodities, securities, or stablecoins, and outlines who will regulate them. The Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) will now share oversight responsibilities.
The third bill, known as the Anti-CBDC Surveillance State Act, passed the House by a narrow 219–210 margin. It blocks the Federal Reserve from developing or issuing a central bank digital currency (CBDC) without congressional approval. Trump has long opposed CBDCs, saying in January 2024 that such a system “would give a federal government absolute control over your money. They could take your money, and you wouldn’t even know it was gone.”
At the signing ceremony, Trump reiterated his stance. “I look forward to signing legislation banning it and making it a permanent law.”
Support from Industry and Allies
Executives from major crypto companies like Coinbase, Tether, Circle, and Anchorage Digital attended the signing. Jeremy Allaire, CEO of Circle, said, “En route to the White House for the historic signing of the GENIUS Act, one of the most transformative pieces of legislation in decades.” Nathan McCauley, CEO of Anchorage, posted, “Taking a moment to appreciate what it took to get here and excited for what is coming next.”
Treasury Secretary Scott Bessent called the bill a win for economic stability. He said that stablecoins will increase demand for U.S. Treasurys, strengthen the dollar, and potentially lower interest rates. SEC Chairman Paul Atkins promised that regulators would “work diligently to achieve regulatory clarity” and “make America the center of crypto asset innovation.”
House Financial Services Committee Chair French Hill described the GENIUS Act as “a watershed victory” that will make the U.S. “an incredible leader globally in digital assets.”
Skepticism and Conflict of Interest Concerns
Despite its broad support, the GENIUS Act has raised concerns about potential conflicts of interest. Critics point to Trump’s deep financial ties to the crypto sector, especially a company called World Liberty Financial, which launched its own stablecoin called USD1. Trump and his family reportedly hold a 60 percent stake in the firm.
Rep. Maxine Waters, the top Democrat on the House Financial Services Committee, argued, “The Genius Act will accelerate Trump’s corruption by supercharging the size of the stablecoin market and the reach and profitability of Trump’s USD1.”
Senator Elizabeth Warren voiced similar concerns. “For the first time in American history, this bill will make our president, Donald Trump, the regulator of his own financial product,” she said.
The White House insists that there are no conflicts of interest, stating that Trump’s assets are held in a trust managed by his children.
Federal regulators now have six months to write the detailed rules that will enforce the GENIUS Act. During that time, banks and crypto companies are expected to begin positioning themselves to take advantage of the new legal clarity.
Meanwhile, the GENIUS Act’s impact on the broader crypto market remains to be seen. Although many industry leaders hailed the signing, Bitcoin prices dipped slightly at the end of the week, falling to about $118,000.
Still, Trump remains confident in the long-term future. “We’re going to be growing it even more,” he said. “More than anyone ever thought.”
With the GENIUS Act now law, America’s experiment with regulated crypto enters a new chapter. Whether it becomes the revolution Trump predicts or opens the door to new financial challenges will depend on how the law is implemented—and who benefits most from its promises.