GENIUS Act Brings Stablecoin Regulation to U.S./ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ President Donald Trump signed the GENIUS Act into law Friday, establishing the first federal framework for stablecoin regulation in the U.S. The move marks a historic win for the crypto industry, introducing consumer protections and bipartisan support. Trump positioned the law as part of his push to make America the global leader in cryptocurrency.
Trump Signs Stablecoin Law: Quick Looks
- Trump signs GENIUS Act, first U.S. stablecoin regulation law
- Bill backed by bipartisan support in Congress
- Law introduces consumer protections and industry guardrails
- Trump: “This is good for the dollar, good for America”
- GENIUS Act excludes the president’s family from trading ban
- Trump family linked to stablecoin project via UAE fund
- Crypto industry praised Trump, citing shift from Biden-era scrutiny
- Trump jokes law was named after him
- New bills passed to support crypto market and block digital dollar
- Crypto industry gains more political clout in Washington
Deep Look: Trump Signs Stablecoin Law, a Pivotal Shift for U.S. Crypto Industry
Deep Look
WASHINGTON — President Donald Trump signed into law the GENIUS Act on Friday, a landmark move establishing the United States’ first national regulations for stablecoins—a type of cryptocurrency pegged to assets like the U.S. dollar. The decision marks a turning point for the rapidly growing digital asset sector, which has been pushing for legitimacy and favorable regulation in Washington.
Passed with bipartisan support in both chambers of Congress, the GENIUS Act—short for “Guiding and Establishing National Innovation for U.S. Stablecoins”—lays out guardrails for the issuance and management of stablecoins, aiming to boost consumer trust and stabilize the crypto ecosystem.
At a White House signing ceremony attended by crypto executives, Republican lawmakers, and policy leaders, Trump praised the industry for its persistence.
“For years, you were mocked and dismissed and counted out,” he said. “This signing is a massive validation of your hard work and your pioneering spirit.”
What the GENIUS Act Does
The GENIUS Act creates regulatory clarity for stablecoin issuers, requiring adequate reserve holdings, public audits, and transparency in operations. Key components include:
- Consumer protections for stablecoin holders
- Reserve backing requirements to reduce risk of collapse
- Periodic audits and disclosures to ensure issuer accountability
- Ban on congressional members and their families trading stablecoins
One notable omission: while the law restricts trading activity for members of Congress and their families, it does not apply to the president or the president’s family.
Trump Family’s Crypto Ties
The law’s signing comes amid reports that Trump’s family holds a significant financial stake in World Liberty Financial, a stablecoin project launched earlier this year. The company received early investment from a UAE-based fund and has benefited from political momentum.
Critics have raised conflict-of-interest concerns, though the administration maintains that Trump’s efforts are focused on creating a favorable economic environment for American innovation.
Still, the contrast is striking: while Congress is barred from profiting, the White House retains clearance to invest freely.
Political Wins and Crypto Strategy
Trump’s support for the GENIUS Act is the latest step in his administration’s effort to rebrand the U.S. as the “crypto capital of the world.” He has reversed many of the Biden-era regulatory crackdowns, including instructing the Securities and Exchange Commission (SEC) to drop multiple enforcement actions against major crypto firms.
“Helping the crypto industry is good for the dollar and it’s good for the country,” Trump said at the signing event, later adding with a smile, “And I also did it for the votes.”
The remark drew laughter from the crowd of over 200 guests, including Trump loyalists in Congress and leading figures from top blockchain firms.
David Sacks, White House crypto and AI czar, also spoke at the event, hailing the bill as “a milestone that will unlock trillions in economic value.”
Broader Crypto Legislation Moves
The GENIUS Act is just the beginning. On Thursday, the House passed two additional bills aimed at shaping the broader crypto landscape:
- A measure to create a national market structure for cryptocurrencies
- A bill to ban the Federal Reserve from issuing a central bank digital currency (CBDC)
Both pieces of legislation now move to the Senate, with strong backing from the crypto lobby and Trump administration.
Industry leaders say the suite of bills represents the most significant U.S. regulatory movement in crypto’s history.
Industry Response
Crypto advocates hailed the law as long-overdue recognition. Circle, a major U.S.-based stablecoin issuer, went public on the New York Stock Exchange earlier this year and has seen its valuation surge. Other firms are now considering IPOs or expanding U.S. operations thanks to the regulatory clarity.
Trump, once skeptical of digital assets, has become one of the industry’s most prominent political champions.
“Nobody has gained the respect in such a short period of time,” he said of crypto entrepreneurs.
The crypto sector has poured tens of millions into campaign contributions and lobbying, becoming a growing political force in Washington. Trump’s legislative win is seen not just as an economic boost, but as a sign of crypto’s institutional arrival in American governance.
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