Washington D.C. – President Donald Trump today signed the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act into law, marking the United States' first comprehensive federal regulatory framework for stablecoins. The landmark legislation, announced by Cointelegraph, aims to bring clarity and stability to the rapidly evolving digital asset market. "Today: President Trump signs the GENIUS Act into law, the first federal regulatory framework for stablecoins," stated the tweet from Cointelegraph.
The GENIUS Act establishes a robust regulatory environment designed to foster innovation while safeguarding consumers and the financial system. It defines payment stablecoins and sets clear requirements for issuers, including mandatory 100% reserve backing with highly liquid assets such as U.S. dollars or short-term Treasuries. This provision seeks to ensure the stability and reliability of these digital assets.
Key provisions of the new law mandate monthly public disclosures of reserve compositions and annual audited financial statements for larger issuers. Importantly, the Act clarifies that payment stablecoins are not to be classified as securities, providing a distinct regulatory path. It also subjects stablecoin issuers to anti-money laundering (AML) and counter-terrorist financing (CFT) obligations under the Bank Secrecy Act.
The legislation’s passage follows a period of intense debate and bipartisan effort, with the bill passing the Senate by a 68-30 vote and the House on July 17, 2025. Proponents argue the framework will strengthen the U.S. dollar's global dominance in the digital age and attract significant stablecoin activity to the country. It also outlines a dual federal and state oversight system, with states regulating issuers below a $10 billion market capitalization.
Despite broad support, the bill faced some opposition, particularly concerning potential conflicts of interest related to digital asset ventures by high-ranking officials and restrictions on large non-financial tech companies issuing stablecoins. The GENIUS Act is anticipated to significantly impact the future of digital payments and the integration of blockchain technology into mainstream finance.