US Enacts Landmark GENIUS Act, Solidifying Pro-Innovation Stance

Washington D.C. – The United States has embarked on a new chapter in cryptocurrency regulation, marked by significant legislative action and a clear shift towards a pro-innovation stance. Eric.gemini.eth, a figure associated with the prominent cryptocurrency exchange Gemini, recently lauded these developments, stating, > "Immutable global permissionless ledgers are super useful. Congrats 🇺🇸 for being pro crypto. Proud that @Gemini could play a role in this moment." This sentiment reflects a growing optimism within the digital asset industry following a series of decisive governmental moves in 2025.

A pivotal moment arrived on July 18, 2025, when President Trump signed the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act into law. This bipartisan legislation establishes a uniform federal framework for dollar-backed stablecoins, mandating 100% reserve backing with high-quality liquid assets and requiring monthly reserve disclosures. The Act aims to integrate these instruments into existing payment systems, offering potential for faster and lower-cost transactions, while also providing token holders with priority claims on reserve assets in case of issuer insolvency.

Earlier in the year, on January 23, 2025, President Trump issued an Executive Order titled "Strengthening American Leadership in Digital Financial Technology." This order formally revoked prior digital asset policies, establishing a President’s Working Group on Digital Asset Markets, chaired by Special Advisor for AI and Crypto David Sacks. The executive action also notably prohibited the establishment of a U.S. Central Bank Digital Currency (CBDC), signaling a preference for private sector innovation in digital currency.

Further contributing to regulatory clarity, the Digital Asset Market CLARITY Act, passed by the House, seeks to define when a digital asset should be treated as a security versus a commodity, aiming to resolve long-standing jurisdictional disputes between the SEC and CFTC. Concurrently, the SEC, under Acting Chair Mark Uyeda, launched a "Crypto 2.0" task force, led by Commissioner Hester Peirce, to develop a comprehensive and clear regulatory framework, moving away from previous "regulation by enforcement" practices. This shift was underscored by the rescission of Staff Accounting Bulletin 121 (SAB 121) by SAB 122 on January 23, 2025, removing a significant barrier for traditional banks to offer digital asset custody services.

The collective legislative and executive actions signify a strong commitment from the U.S. government to foster responsible growth and innovation within the digital asset sector. This structured approach, moving from regulatory ambiguity to a codified framework, is expected to provide greater certainty for businesses and investors, positioning the United States as a leading hub for digital asset development and adoption.