#StablecoinLaw On July 18, 2025, the President of the United States, Donald Trump, enacted the GENIUS Act, establishing the first federal regulatory framework for stablecoins, cryptocurrencies backed by assets like the U.S. dollar. This legislation, officially called the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act), was passed in the House of Representatives with a vote of 308-122, garnering support from nearly half of Democratic legislators and the majority of Republicans.
The law facilitates banks' issuance of stablecoins and enhances transparency and accountability in the stablecoin market. It requires these currencies to be backed by liquid assets such as U.S. dollars or short-term Treasury bonds, and mandates their issuers to disclose the composition of their reserves monthly. The aim is to increase the credibility of stablecoins, making them more attractive for banks, retailers, and consumers to use in instant fund transfers.
