Stablecoin Law: Trump Signs GENIUS Act
President Donald Trump signs the Guiding and Establishing National Innovation for U.S.
President Donald Trump has signed the Guiding and Establishing National Innovation for U.S. Stablecoins Act, commonly known as the GENIUS Act. That gives the U.S. stablecoin market finally a federal regulatory framework. A historic step for crypto overall, and for stablecoins in particular.
“This afternoon we’re taking a huge step to strengthen American dominance in the global financial system and in crypto technology,” Trump said at the signing ceremony.
The president didn’t mince words. In a blunt jab at his predecessor, he told industry leaders: “You’ve come a long way since the Biden administration. They had no idea what they were talking about — half of you were arrested for no reason.” According to Trump, signing the law is a “massive endorsement” for the crypto sector.
Industry insiders also welcomed the move. Jeremy Allaire, CEO of stablecoin issuer Circle, called the law “one of the most important financial laws of the past decades” and added: “Welcome to the Internet era of the global financial system!”
What does the GENIUS Act say?
The law sets high standards for stablecoin issuers:
- Full coverage: every stablecoin must be 100% backed by U.S. dollars or equivalent liquid assets.
- Transparency: issuers with more than $50 billion in market value are required to undergo an annual audit.
- International issuance: strict guidelines for stablecoins operated from abroad.
Political path not without bumps
Although the law passed the House on Thursday with broad margins (308 for, 122 against) and had already cleared the Senate (68–30) earlier, it wasn’t a walk in the park. Within the Republican caucus, a few members voted against in procedural votes, stirring political tensions.
Additionally, some Democrats voiced concerns about the World Liberty Financial project — a crypto platform with close ties to the Trump family. Maxine Waters, chair of the House Financial Services Committee, spoke of possible conflicts of interest and raised critical questions about the role of foreign stablecoin issuers.
A new era for American crypto?
With the GENIUS Act taking effect, the U.S. positions itself strategically in the global stablecoin race. What was once a gray area is now a legally recognized playing field. The ball is now in the court of Circle, Paxos, and others to capitalize on these new frameworks or risk losing ground to countries like Singapore and the EU, where regulation has long existed.
