WASHINGTON (AP) — President Donald Trump on Friday signed into law the GENIUS Act, establishing the first comprehensive U.S. regulations for stablecoins, marking a significant milestone for the cryptocurrency industry. The move reflects both the sector’s rising political clout and Trump’s commitment to positioning the U.S. as the global leader in digital finance.
The GENIUS Act — short for Guiding and Establishing National Innovation for U.S. Stablecoins — passed both chambers of Congress with strong bipartisan support. The legislation introduces foundational guardrails and consumer protections for stablecoins, digital tokens tied to assets like the U.S. dollar, designed to minimize volatility compared to other cryptocurrencies.
Speaking at a White House signing ceremony attended by about 200 people, including top GOP lawmakers and crypto executives, Trump praised the industry’s rise:
“For years you were mocked and dismissed and counted out,” he said. “This signing is a massive validation of your hard work and your pioneering spirit.”
Once a skeptic of digital currencies, Trump has embraced the sector as both a financial innovation and a political opportunity. He emphasized that helping the crypto industry is “good for the dollar and good for the country,” and joked that the law’s acronym might have been a nod to him:
“I also did it for the votes,” he quipped, drawing laughter from the crowd.
Trump’s administration has taken steps to roll back regulatory crackdowns on crypto, including the SEC dropping enforcement actions against major firms. His vocal support is seen as a reward for the industry’s significant financial backing in his 2024 presidential campaign.
The crypto sector, which had long claimed it was unfairly targeted under the Biden administration, spent aggressively on lobbying and campaign donations to help secure Trump’s return to office.
A Rapidly Growing Industry
The use of stablecoins has surged in recent years. U.S.-based Circle, issuer of one of the most prominent stablecoins, recently debuted on the New York Stock Exchange, drawing strong investor interest and quickly gaining market value. Stablecoin issuers earn revenue from interest on the assets they hold to back their coins.
A provision in the GENIUS Act bans members of Congress and their families from profiting off stablecoins — though notably, this restriction does not apply to the president or his family. Trump’s family holds a substantial stake in World Liberty Financial, a crypto project that launched its own stablecoin earlier this year, with backing from a UAE-based investment fund.
Broader Crypto Legislation Advancing
In addition to the GENIUS Act, the House passed two other pro-crypto bills on Thursday. One creates a new regulatory framework for digital assets, while the other prohibits the Federal Reserve from issuing a central bank digital currency (CBDC). Both measures now await action in the Senate.
The GENIUS Act’s passage marks a major step in the institutionalization of crypto — and a clear signal that digital finance will remain a central issue in Washington’s evolving economic and political landscape.
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