In a historic moment for digital assets, President Donald Trump on Friday signed into law the GENIUS Act, the first major piece of U.S. legislation to regulate stablecoins. The move caps off a flurry of crypto-focused activity on Capitol Hill during what industry insiders are calling “Crypto Week.”
The GENIUS Act, short for Guiding and Establishing National Innovation for U.S. Stablecoins, mandates full reserve backing, monthly audits, and strict anti-money laundering compliance for stablecoin issuers. It lays the regulatory foundation for U.S. dollar-pegged tokens to operate within the traditional financial system—potentially reshaping how payments and digital finance evolve in the years ahead.
“This afternoon, we take a giant step to cement American dominance in global finance and crypto technology,” Trump said at a White House signing ceremony.
The bill passed the House in a commanding 308–122 vote on Thursday, following the Senate’s approval in June. It joins two other landmark crypto measures passed by the House this week: the CLARITY Act, which outlines a market structure for digital assets, and the Anti-CBDC Surveillance State Act, which seeks to block the issuance of a U.S. central bank digital currency. The latter two now move to the Senate for debate.
Passage of the GENIUS Act came after intense negotiations, including a nine-hour standoff between House conservatives and committee leaders. At one point, Speaker Mike Johnson intervened directly to broker a late-night compromise that aligned the bills’ language and secured GOP unity.
While the GENIUS Act is being lauded as a pivotal step by many in the industry, some policy voices remain cautious. Senator Elizabeth Warren (D-MA) has warned that the broader package may open regulatory loopholes for large firms like Meta and Tesla to tokenize assets in ways that circumvent SEC oversight. Meanwhile, the Independent Community Bankers of America raised concerns about a potential “shadow banking” system and called for stricter limits on crypto platforms accessing Federal Reserve infrastructure.
Despite lingering skepticism, some analysts suggest the law could pave the way for increased cryptocurrency innovation and adoption. Greg Benhaim, executive vice president at digital asset manager 3iQ, said he doesn’t expect the legislation to have an immediate impact on Bitcoin prices, but acknowledged that it may catalyze long-term growth in the sector.
As Congress prepares to take up the remaining bills next week, the U.S. appears poised to finally anchor its digital asset sector with a regulatory framework—one that could accelerate crypto’s integration into the mainstream financial system.
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