Washington D.C. – President Donald J. Trump signed the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act into law on July 18, 2025, marking the first major federal legislation to regulate cryptocurrencies in the United States. The bipartisan bill, which passed both the Senate and House, aims to establish a clear regulatory framework for payment stablecoins. This landmark act is intended to position the U.S. as a leader in the global digital asset landscape.
The GENIUS Act specifically mandates that stablecoins be backed one-to-one by low-risk assets, such as U.S. dollars, ensuring greater stability and transparency for users. This framework outlines stringent standards for reserves, audits, and redemption, addressing a long-standing regulatory gap in the rapidly evolving digital currency market. Proponents assert that the legislation will foster consumer protection and allow for the mainstream adoption of digital assets.
Supporters of the GENIUS Act, including various industry leaders, have applauded the measure as a crucial step towards legitimizing the cryptocurrency sector. They argue that the new regulations will provide much-needed clarity, encouraging conventional financial institutions to engage with digital currencies and expanding the overall digital currency market. The act is seen as a foundational element for integrating stablecoins into the broader financial system.
However, the legislation has also drawn criticism from various quarters. Some critics express concerns that the act could compromise the decentralized nature of cryptocurrencies or potentially enable corruption, particularly regarding the favoring of specific stablecoins under the new rules. Consumer advocacy groups have also voiced apprehension, suggesting that the bill may not offer sufficient consumer protections and could allow tech firms to engage in bank-like activities without equivalent oversight.
The global implications of the GENIUS Act are a subject of ongoing discussion among financial experts and digital asset strategists worldwide. As noted by Cointelegraph in a recent tweet, Sygnum Chief Investment Officer Fabian Dori and Savannah Fortis are among those analyzing the act's potential global impact. This ongoing dialogue highlights the need for international coordination as other regions, including the EU and Hong Kong, also advance their own stablecoin regulations.