Stablecoin Industry Wins Big as Trump Signs Law

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Stablecoin Industry Wins Big as Trump Signs Law \ Newslooks \ Washington DC \ Mary Sidiqi \ Evening Edition \ President Donald Trump has signed the GENIUS Act, marking the first major U.S. law regulating stablecoins. The bipartisan legislation is a major victory for the crypto industry, which backed Trump politically. The law strengthens consumer protections and reinforces Trump’s pledge to make the U.S. a global crypto hub.

Quick Looks

GENIUS Act signed into law by President Trump on Friday.
Establishes regulatory framework and consumer protections for U.S.-backed stablecoins.
Passed with bipartisan support in both House and Senate.
Trump calls the law a “validation” for crypto pioneers.
Crypto industry spent heavily to support Trump’s 2024 campaign.
SEC under Trump has dropped several enforcement cases against crypto firms.
GENIUS Act bars Congress members—but not the president—from profiting off stablecoins.
Trump’s family holds major stake in World Liberty Financial’s new stablecoin.
Circle’s stablecoin surged after NYSE debut earlier this year.
Two additional crypto bills passed by the House now head to Senate.

Deep Look

In a landmark moment for digital finance and political influence, President Donald Trump signed into law the GENIUS Act on Friday, marking the first comprehensive federal regulation of stablecoins—cryptocurrencies pegged to fiat currencies like the U.S. dollar. The legislation is a sweeping affirmation of the crypto industry’s growing economic and political clout, and it further cements Trump’s pivot from crypto skeptic to the self-declared champion of a “digital dollar revolution.”

The GENIUS Act—formally named the Guiding and Establishing National Innovation for U.S. Stablecoins Act—passed with rare bipartisan support in both the House and Senate. Its provisions aim to legitimize and stabilize a volatile corner of the digital asset market by requiring stablecoin issuers to maintain full asset backing, adhere to specific transparency standards, and submit to routine audits. It also establishes licensing requirements through federal agencies, drawing a clear regulatory framework for an industry that has long operated in murky legal territory.

Crypto Comes of Age in Washington

At the White House signing ceremony, attended by over 200 crypto executives, investors, and Republican leaders, President Trump praised the industry’s rapid transformation from fringe technology to mainstream financial tool.

“For years you were mocked and dismissed and counted out,” Trump said. “This signing is a massive validation of your hard work and your pioneering spirit.”

Trump’s words resonated with an industry that once faced sharp resistance from federal regulators under former President Joe Biden. Biden’s tenure was marked by aggressive enforcement actions from the Securities and Exchange Commission (SEC), skepticism toward digital currencies, and vocal opposition to corporate crypto ventures. In contrast, Trump’s administration has taken deliberate steps to de-escalate regulatory pressure—most notably by ordering the SEC to drop several high-profile enforcement cases against large crypto firms.

The tone shift has not come without calculation. Crypto donors and lobbying organizations spent heavily during the 2024 election cycle, pouring tens of millions into Super PACs aligned with Trump and other pro-crypto candidates. According to Federal Election Commission filings, major industry players like Circle, Coinbase, and Binance-backed funds contributed significantly to campaigns that promised regulatory reform and innovation-friendly policies.

At the bill signing, Trump made a candid admission: “I also did it for the votes,” he joked, acknowledging the growing political influence of the tech-savvy, finance-driven crypto base. The remark drew laughter, but it underscored the realpolitik behind this legislative breakthrough.

Winners, Losers, and the Missing Rules

While the GENIUS Act represents a major win for stablecoin companies and investors, it also raises ethical questions. One of the law’s most controversial features is a provision that bans members of Congress and their families from investing in or profiting off stablecoins—but does not extend the same restriction to the president or the executive branch.

This loophole has drawn particular scrutiny given President Trump’s personal and family involvement in the cryptocurrency space. The Trump family holds a significant stake in World Liberty Financial, a new crypto project that launched its own U.S.-pegged stablecoin earlier this year. The company received early funding from a UAE sovereign wealth fund and has since rapidly grown in valuation, aided by increased visibility tied to the president’s public remarks and favorable regulatory climate.

Although legal under current law, the optics of a sitting president profiting from a market his administration is regulating are politically sensitive. Ethics groups have called for expanded transparency rules and potential amendments to the GENIUS Act to address this concern.

Nonetheless, stablecoin issuers like Circle—which recently debuted on the New York Stock Exchange—celebrated the bill’s passage. Circle’s market value surged following its IPO, fueled by investor optimism that regulatory clarity will drive broader adoption of dollar-backed crypto payments both domestically and internationally.

Stablecoins have become a cornerstone of the crypto economy, often used for cross-border transfers, decentralized finance (DeFi) protocols, and as a hedge against volatility in more speculative tokens like Bitcoin or Ethereum. By formalizing legal protections and regulatory oversight, the GENIUS Act may encourage institutional investors, banks, and even governments to integrate stablecoins into their financial systems.

New Bills Signal More to Come

The GENIUS Act may be just the first of a wave of crypto legislation under Trump’s second term. On Thursday, the House passed two additional crypto bills: one that would establish a comprehensive market structure for digital assets, and another that bans the Federal Reserve from launching a central bank digital currency (CBDC).

The proposed CBDC ban reflects a deeper ideological divide. While some economists and central bankers view government-issued digital currencies as a modern necessity for financial inclusion and global competitiveness, Trump and his allies see them as tools of government overreach and surveillance. By banning the Fed from issuing its own digital currency, the administration is making a clear bet on private-sector innovation—and tying its future to crypto-friendly finance.

Both bills now head to the Senate, where they are expected to face more resistance from Democratic lawmakers wary of excessive deregulation.

Political Capital, Financial Consequences

For Trump, the GENIUS Act is both a policy achievement and a political weapon. It allows him to deliver on a promise to make America “the crypto capital of the world,” while simultaneously using the issue to frame Democrats as backward, anti-innovation bureaucrats. His comments during the bill signing—emphasizing respect, power, and freedom—reflect a broader messaging strategy targeting younger, more technologically fluent voters.

For the crypto industry, the law provides the legitimacy it has long craved. With stablecoins now formally recognized under U.S. law, firms can begin scaling operations with more confidence, knowing they have federal backing and clearer compliance rules. This will likely open the door to greater involvement by Wall Street, commercial banks, and global institutions.

But critics warn that without proper safeguards—including independent oversight and conflict-of-interest laws—the close alliance between crypto executives and political leaders could erode public trust.

As one ethics analyst noted, “Crypto just got a seat at the grown-ups’ table. Now the question is whether they’ll act like grown-ups—or simply use their influence to rewrite the rules in their favor.”

For now, the GENIUS Act stands as a turning point: a symbol of how quickly the crypto industry has gone from fringe disruptor to establishment insider, and how President Trump has become its most powerful ally.