President Donald Trump signs the “Genius Act”, which will develop regulatory framework for stablecoin cryptocurrencies and expand oversight of the industry, at the White House in Washington, D.C., July 18, 2025.-Nathan Howard/Reuters
President Donald Trump has just signed the GENIUS Act, the first major federal law aimed at regulating cryptocurrency in the U.S.—and it’s a big win for the crypto industry. The law focuses on making stablecoins, a type of digital currency linked to the U.S. dollar, easier for banks and financial institutions to issue.
What Is the GENIUS Act?
Passed with strong bipartisan support, the GENIUS Act (short for Government-Enforced Nationwide Innovation in U.S. Stablecoins) is designed to bring clarity to how stablecoins are created and managed. In simple terms, it opens the door for banks and licensed entities to offer stablecoins more easily—helping make crypto feel more secure and legitimate for everyday users.
Stablecoins are digital tokens tied to a “stable” asset, like the U.S. dollar. People typically buy them with regular money, then use them to trade other cryptocurrencies like Bitcoin. Because they’re less volatile, they’re seen as a safer on-ramp into crypto.
Why It Matters
At the bill’s signing at the White House on Friday, Trump called crypto a “very powerful industry” and said the U.S. is leading the way. “We’re making America the crypto capital of the world,” he said.
Trump, who once doubted crypto, has now become one of its loudest supporters. In fact, his family is heavily involved in the space. A company linked to them, World Liberty Financial, launched its own stablecoin called USD1 earlier this year—and owns 60% of that venture.
Support and Criticism
Many Republicans celebrated the bill, saying it finally brings order to a fast-growing financial space. “It’s a historic moment,” said Rep. French Hill, who helped lead the effort.
But not everyone is on board. Some Democrats raised red flags, arguing that the bill doesn’t do enough to prevent public officials from profiting off personal crypto investments. Rep. Maxine Waters pointed out that companies tied to Trump could benefit financially under the new law.
Still, the White House insists there’s no conflict of interest. Trump’s crypto assets are reportedly in a trust managed by his children.
What Happens Next?
Don’t expect immediate changes. Federal regulators now have six months to draft detailed rules for how the law will be implemented. Meanwhile, the House has also passed another crypto-related bill called the CLARITY Act, which deals with how digital assets should be regulated by the SEC or CFTC. That bill is heading to the Senate next.
With this new law, the U.S. has taken a big step toward mainstreaming crypto—especially stablecoins—as part of the everyday financial system.
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