Donald Trump signs GENIUS Act, the first US stablecoin law, boosting crypto regulation while launching his own crypto ventures. Photo/X.
President Donald Trump on Friday signed the Guiding and Establishing National Innovation for US Stablecoins Act (GENIUS Act) into law, calling it a major win for the crypto industry and joking that it was named after him.
Speaking at a White House press conference, POTUS praised the bill and the crypto sector, saying, “it’s good for the dollar and it’s good for the country. That’s why I backed you at an early stage.” He then added candidly, “and I also did it for the votes,” drawing laughter from the audience.
Trump also lavished praise on crypto leaders, telling them, “nobody has gained the respect in such a short period of time.”
During his remarks, Trump repeated his claim that the GENIUS Act was “named after me,” referring to the bill’s acronym.
The GENIUS Act signed by POTUS establishes the first US federal regulatory framework for stablecoins, which is a type of cryptocurrency connected to traditional assets like the US dollar. According to crypto data provider CoinGecko, the stablecoin market is currently valued at more than $260 billion and with the new act in place analysts say it could grow to $2 trillion by 2028 under the new law.
The bill passed the House of Representatives by a vote of 308 to 122, gaining support from most Republicans and nearly half of the Democratic members.
Under the GENIUS Act:
Only Permitted Payment Stablecoin Issuers (PPSIs) can issue stablecoins. PPSIs must either be subsidiaries of insured banks, federally qualified nonbanks, or state-qualified issuers with $10 billion or less in issuance.
Issuers must hold 1:1 reserves in U.S. dollars or low-risk assets, publish monthly reserve reports, and undergo audits.
Issuers are required to disclose their redemption policies clearly.
Rehypothecation of reserves is banned except under strict conditions.
The Treasury, Federal Reserve, and Office of the Comptroller of the Currency (OCC) will oversee the system, with states certifying smaller issuers.
Foreign stablecoin issuers must register with the OCC and hold U.S. reserves if their home country’s regulations are deemed comparable by the Treasury.
After July 2028, stablecoins not issued by a PPSI will be banned in the United States.
Yield offerings for stablecoin holders are prohibited.
The law prevents members of Congress and their families from profiting off stablecoins, but the President is exempt from this restriction, raising concerns about Trump’s involvement with World Liberty Financial.
The GENIUS Act will take effect in January 2027, which is 18 months after the signing, or 120 days after the Treasury and Federal Reserve issue final regulations, whichever comes first.
At the signing ceremony, Trump addressed several crypto executives in attendance, saying, “this signing is a massive validation of your hard work and pioneering spirit.”
The bill’s passage marks the culmination of a long lobbying effort by the crypto industry, which donated more than $245 million during last year’s elections to support pro-crypto candidates, including Trump. This is according to data from the Federal Election Commission.
Throughout his campaign, Trump positioned himself as a supporter of digital assets, telling a crypto conference audience that he would make the United States “the crypto capital of the planet.”
Alongside policy moves, Trump has personally entered the digital assets space. In January, he launched a meme coin called $TRUMP and he partly owns World Liberty Financial, a crypto company.
President Trump signed an executive order in March creating a strategic Bitcoin reserve as part of his broader cryptocurrency agenda which he unveiled even before coming to the power for the second term.
These personal ventures have drawn criticism from Democrats in Congress, who have raised concerns about Trump and his family promoting their own crypto projects. At one point, this backlash threatened to derail the GENIUS Act.
The White House has defended the president’s actions, stating that there are no conflicts of interest because Trump’s assets are in a trust managed by his children.
Also Read: Donald Trump Files Lawsuit Over Wall Street Journal On Epstein Letter Story
Zubair Amin is a Senior Journalist at NewsX with over seven years of experience in reporting and editorial work. He has written for leading national and international publications, including Foreign Policy Magazine, Al Jazeera, The Economic Times, The Indian Express, The Wire, Article 14, Mongabay, News9, among others. His primary focus is on international affairs, with a strong interest in US politics and policy. He also writes on West Asia, Indian polity, and constitutional issues. Zubair tweets at zubaiyr.amin
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