President Donald Trump today signed into law a groundbreaking bill establishing the first federal regulatory framework for stablecoins, marking a pivotal moment for the cryptocurrency industry in the United States. The “Guiding and Establishing National Innovation for U.S. Stablecoins,” or GENIUS Act, as it’s officially known, was signed by the President in a ceremony on Friday afternoon.
“This afternoon, we take a giant step to cement American dominance of global finance and crypto technology as we sign the landmark GENIUS Act into law,” Trump stated at the signing. He also took a jab at the previous administration, remarking, “They’ve come a long way since the Biden administration, when they had no idea what were you all talking about and half of you were under arrest for no reason.” The President hailed the signing as a “massive validation” for the burgeoning crypto sector.
Key Provisions of the GENIUS Act
The GENIUS Act introduces a comprehensive federal regulatory structure for stablecoins, digital currencies pegged to the value of traditional assets like the U.S. dollar. Key requirements of the new law include:
Full Backing: Stablecoins must be fully backed by U.S. dollars or similarly liquid assets.
Annual Audits: Issuers with a market capitalization exceeding $50 billion will be mandated to conduct annual audits.
Foreign Issuance Guidelines: The bill also establishes clear guidelines for the issuance of stablecoins by foreign entities.
Legislative Journey and Industry Acclaim
The GENIUS Act cleared its final hurdle on Thursday, passing the U.S. House of Representatives with a vote of 308-122, after having already secured passage in the Senate. The legislative journey for GENIUS, along with other significant crypto-related bills concerning market structure and central bank digital currencies, encountered some resistance from certain Republicans who voted against procedural motions.
The signing ceremony was attended by prominent figures in the crypto world, including Tether CEO Paolo Ardoino and Coinbase CEO Brian Armstrong. Industry leaders expressed their enthusiasm on social media platform X ahead of the event.
Jeremy Allaire, CEO of Circle, whose USDC stablecoin accounts for approximately $63 billion of the total stablecoin supply (compared to Tether’s $162 billion USDT as of July 18), posted, “En route to the @WhiteHouse for the historic signing of the GENIUS Act, one of the most transformative pieces of legislation in decades. Global financial system, welcome to the Internet!”
Nathan McCauley, CEO of Anchorage Digital, shared similar sentiments, stating, “GENIUS is the first major digital asset legislation to clear Congress after years of public and private effort led to this bipartisan milestone. Taking a moment to appreciate what it took to get here and excited for what is coming next.” Executives from Coinbase, including CEO Armstrong, Chief Legal Officer Paul Grewal, and Chief Policy Officer Faryar Shirzad, also confirmed their attendance on X.
