President Donald Trump signed the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act into law, making it the first federal legislation to regulate stablecoins in the United States. The move sets a new precedent in digital asset regulation and signals a significant shift in U.S. crypto policy.
The new law mandates that all stablecoins must be fully backed by U.S. dollars or similarly liquid assets. Issuers with a market cap exceeding $50 billion are now required to conduct annual audits. It also outlines clear rules for foreign-issued stablecoins operating in U.S. markets.
During the signing event on Friday, Trump described the legislation as a pivotal moment for American leadership in financial technology. He contrasted the move with the previous administration’s approach, calling it disorganized and hostile to crypto innovation. The bill passed the House with a 308-122 vote after earlier clearing the Senate.
GENIUS Act Sets Federal Standards for Stablecoins in U.S.
With the GENIUS Act now law, the U.S. has implemented the first national framework for the issuance and management of stablecoins. The regulation aims to ensure transparency, protect consumers, and control foreign influence in the digital currency sector.
Major industry players attended the ceremony at the White House, including Tether CEO Paolo Ardoino, Circle CEO Jeremy Allaire, and Coinbase CEO Brian Armstrong. Allaire expressed his excitement on X, calling the bill one of the most significant financial updates in decades.
Executives from Anchorage Digital, Coinbase, and Circle echoed similar sentiments, applauding the long-awaited legislation. According to them, the GENIUS Act lays the foundation for responsible innovation and regulatory clarity in the crypto market.
“Honored to be in Washington today, heading to the @WhiteHouse as the GENIUS Act becomes law,” Anchorage Digital CEO Nathan McCauley posted on X. “GENIUS is the first major digital asset legislation to clear Congress after years of public and private effort led to this bipartisan milestone. Taking a moment to appreciate what it took to get here and excited for what is coming next.”
Concerns Over Trump-Linked Stablecoin and Foreign Risks
Despite bipartisan support, some Democrats voiced concerns over potential conflicts of interest. Representative Maxine Waters pointed to World Liberty Financial USD, a stablecoin reportedly tied to the Trump family, raising alarms about political and financial entanglements.
She also warned that the bill could enable sanctioned or high-risk foreign firms to access U.S. markets under lax oversight. According to her statement, the law favors entities with insider ties while risking national security.
According to data from The Block, Tether’s USDT currently leads the market with $162 billion in supply, while Circle’s USDC follows at $63 billion. The GENIUS Act will directly affect how these dominant stablecoins operate within U.S. jurisdictions.
Earlier this year, Trump repealed a controversial tax rule from the Biden administration requiring custodial brokers to report crypto user data. The move was widely welcomed within the industry and paved the way for broader reforms.
Conclusion
The GENIUS Act represents a significant shift in U.S. digital asset policy, establishing a federal legal structure for stablecoins. As the crypto sector reacts, the new law is expected to reshape global digital currency regulation and spark further policy debates.
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