Trump signs historic legislation, marking the U.S. officially entering a new era of cryptocurrency regulation.
U.S. President Trump officially signed the (GENIUS Act) on Friday in the White House East Room, marking the first federal law targeting digital assets in U.S. history, symbolizing a new milestone in cryptocurrency regulation in the United States.
During the signing ceremony, Trump stated, 'This afternoon, we took a giant step toward consolidating America’s dominance in global finance and crypto technology.'
The bill passed the House with an overwhelming vote of 308 in favor and 122 against, garnering bipartisan support from 206 Republican members and 102 Democratic members. The Senate had previously passed the bill with a vote of 68 in favor and 30 against.
Trump joked, 'This bill is called the (GENIUS Act), and I think it’s named after me.'
Source: Bitcoin Magazine Trump signs the (GENIUS Act) under the watchful eyes of many.
The signing ceremony was attended by many heavyweight figures from the cryptocurrency industry, including: Coinbase CEO Brian Armstrong, Tether CEO Paolo Ardoino, Circle CEO Jeremy Allaire, Gemini co-founders Cameron and Tyler Winklevoss, and Kraken co-CEO Dave Ripley.
Trump told the cryptocurrency community present: 'For years, the entire crypto community has been mocked, ignored, and underestimated, and even considered hopeless a year and a half ago, but today’s signing is a tremendous recognition of your hard work and pioneering spirit.'
The (GENIUS Act) establishes a complete regulatory framework for stablecoins, requiring 100% reserves.
The (GENIUS Act) establishes a federal regulatory framework for the $267 billion stablecoin market. The bill requires stablecoin issuers to be 100% fully backed by dollars or equivalent liquid assets, and issuers with a market capitalization exceeding $50 billion need to undergo annual audits. The bill designates the Federal Reserve (Fed) and the Office of the Comptroller of the Currency (OCC) as the primary regulatory agencies, with the Fed overseeing large bank issuers and the OCC regulating non-bank issuers with issuance exceeding $10 billion.
According to the bill, stablecoin reserves must be held in the form of U.S. currency, demand deposits, U.S. Treasury securities, and other 'approved assets.' Issuers are also required to regularly share their reserve information and segregate reserve assets from other assets unless customers explicitly agree to repledge them. The bill explicitly prohibits algorithmic stablecoins and requires issuers to guarantee consumers the ability to redeem at par within a specified timeframe.
White House cryptocurrency and AI czar David Sacks stated at the ceremony: 'The (GENIUS Act) will unleash America's dominance in the crypto industry by establishing clear rules of the game. It will update outdated payment rails with revolutionary new payment systems and expand the global dominance of the dollar by creating a digital dollar that people around the world can use.'
The industry celebrates the arrival of regulatory clarity, and stock prices rise in response.
The passage of the (GENIUS Act) has left the long-desired regulatory clarity cryptocurrency industry ecstatic. Circle CEO Jeremy Allaire tweeted on his way to the White House: 'Heading to the White House for the historic signing of the (GENIUS Act), one of the most transformative pieces of legislation in decades. Welcome to the internet age, global financial system!'
Source: X/@jerallaire Circle CEO Jeremy Allaire posted to congratulate the global financial system on entering the internet age.
Driven by the positive news of the bill's passage, shares of Circle, which issues the $USDC stablecoin, surged 18.2% this week. Currently, the stablecoin market is mainly dominated by Tether's $USDT (market cap $162 billion) and Circle's $USDC (market cap $63 billion).
Coinbase CEO Brian Armstrong described this as a 'surreal moment' and stated, 'The signing of the first federal cryptocurrency law opens a new era for cryptocurrency, applicable to stablecoins starting today. Market structure will be the next step, and we are committed to collaborating with the White House by the September 30 deadline.'
Source: X/@brian_armstrong Coinbase CEO Brian Armstrong described this as a 'surreal moment.'
Senate Banking Committee ranking member Tim Scott referred to the bill as 'regulatory clarity for the stablecoin industry' and stated that faster, cheaper payments will 'consolidate the dollar's dominance worldwide.' Treasury Secretary Scott Bessent also expressed gratitude to House Republicans for their 'actions of fulfilling promises,' making the U.S. the 'cryptocurrency capital of the world.'
More cryptocurrency bills are pending, Trump promises to sign market structure bills by the end of the year.
In addition to the (GENIUS Act), the House also passed the (CLARITY Act) and the (Anti-CBDC Act) this week, which are currently being sent to the Senate for review. Trump pledged during the signing ceremony to sign broader cryptocurrency market structure legislation by the end of the year.
Further Reading
A New Era of Cryptocurrency in the U.S. Opens! Three Key Bills Passed, Major Impact on the Industry at a Glance
The (CLARITY Act) aims to clarify the regulatory authority of the SEC and CFTC and organize the classification of cryptocurrencies as securities and commodities. The bill passed the House with a vote of 294 in favor and 134 against, receiving support from 78 Democratic members. House Financial Services Committee Chairman French Hill urged the Senate to adopt the bill directly and amend it rather than redraft legislation.
Senate Banking Committee Chairman Tim Scott has set September 30 as the deadline for Senate action. However, some Senate Democrats are expected to raise objections to these bills, claiming that Trump may gain personal benefits, especially considering the cryptocurrency business World Liberty Financial supported by the Trump family and its $USD1 stablecoin.
Trump summarized the measures launched since he took office in January to address the demands of the cryptocurrency industry during the ceremony, including the pardon of Silk Road founder Ross Ulbricht, the establishment of a national Bitcoin reserve, and the nomination of Paul Atkins as SEC Chairman.
He stated, 'Cryptocurrency has outperformed any stock. Cryptocurrency makes the dollar look good. Cryptocurrency benefits both the dollar and the nation.'
'Finally realized the dream! Trump officially signs the GENIUS Act, the first regulation law for stablecoins in the U.S.' This article was first published in 'Crypto City.'
