#StablecoinLaw US President Donald Trump signed the GENIUS Act into law on July 18, 2025, establishing a regulatory framework for stablecoins, which are cryptocurrencies pegged to assets like the US dollar.

The law requires stablecoins to be backed by liquid assets such as US dollars and short-term Treasury bills, and mandates that issuers publicly disclose the composition of their reserves monthly.

The bill passed the House of Representatives with a vote of 308 to 122, gaining support from nearly half of the Democratic members and most Republicans, following earlier approval by the Senate.

This legislation is seen as a significant step toward legitimizing the crypto industry, enabling stablecoins to become a regular mode of payment and money transfer.

Treasury Secretary Scott Bessent stated that the new technology would bolster the dollar’s status as the global reserve currency, expand access to the dollar economy, and boost demand for US Treasuries.

The stablecoin market, valued at over $260 billion according to crypto data provider CoinGecko, is projected to grow to $2 trillion by 2028 under the new law, as estimated by Standard Chartered Bank.

The passage of the law followed a significant lobbying effort by the crypto industry, which donated more than $245 million in the previous year’s elections to support pro-crypto candidates, including Trump.

Trump, who has launched his own meme coin, $TRUMP, and partly owns crypto company World Liberty Financial, expressed his commitment to making the United States the crypto capital of the world.

Critics, including some Democrats, argued that the law should have included provisions to block big tech companies from issuing their own stablecoins, stronger anti-money laundering protections, and prohibitions on foreign stablecoin issuers.

A provision in the GENIUS Act bans members of Congress from profiting off stablecoins but does not extend to the president and his family.