US President Donald Trump on Friday signed the “GENIUS Act,” a new law aimed at regulating payment stablecoins, marking a significant step toward bringing legitimacy and oversight to the cryptocurrency industry. The law, officially titled “Guiding and Establishing National Innovation for US Stablecoins,” represents a major policy shift for digital assets in the US. The new law received strong support in both the House and Senate, passing with wide bipartisan backing.Speaking at a White House signing ceremony attended by around 200 people, including prominent crypto executives and top Republican lawmakers, Trump called the law a “massive validation” of the industry’s efforts.“For years you were mocked and dismissed and counted out,” he told the attendees.“This signing is a massive validation of your hard work and your pioneering spirit,” the US president added.Later, taking to Truth Social, he wrote “I pledged that we would bring back American liberty and leadership and make the US the crypto capital of the world—The Genius Act creates a clear and simple regulatory framework to establish and unleash the immense promise of dollar-backed stablecoins…”
What is Trump’s GENIUS Act?
The “Guiding and Establishing National Innovation for US Stablecoins” or GENIUS Act is a set of regulatory frameworks aimed at establishing oversight and consumer protections for stablecoins, cryptocurrencies tied to traditional assets like the US dollar to reduce price volatility. It lays down foundational rules for stablecoin issuers, aimed at improving consumer confidence in a segment of crypto that has seen explosive growth, as per AP.The new law is a big step for an industry that has quickly gained political influence in Washington, thanks to heavy lobbying and campaign donations.
Political stance
A notable provision in the new law prohibits members of Congress and their families from profiting off stablecoins, a move intended to address concerns over conflicts of interest, according to AP.However, the ban does not apply to the president or his family. Trump’s family is known to hold a significant stake in World Liberty Financial, a crypto firm that launched its own stablecoin earlier this year, backed in part by an investment fund from the United Arab Emirates.The House also advanced two additional crypto-related bills on Thursday. One proposes a new market structure for the broader cryptocurrency space, while the other seeks to block the Federal Reserve from issuing a central bank digital currency. Both measures now await consideration in the Senate.
