Trump Signs the GENIUS Act, Marking the First Federal Cryptocurrency Legislation in the United States
On July 19, President Donald Trump officially signed the "Guidance and Establishment of the U.S. Stablecoin National Innovation Act," known as the "GENIUS Act," becoming the first federal legislation on cryptocurrency regulation in U.S. history to take effect.
It is noteworthy that this landmark legislation brings unprecedented changes to the stablecoin industry. The act not only establishes a national regulatory framework for stablecoins in the U.S. for the first time but also signifies that stablecoins are moving from a gray area to the edge of the mainstream financial system.
The passage of the GENIUS Act is attributed to bipartisan consensus, receiving support from nearly half of Democratic lawmakers and the vast majority of Republican lawmakers. At the signing ceremony, Trump emphasized that this is an affirmation of the spirit of innovation, reinforcing the position of the dollar and benefiting the nation and its people.
The new law requires stablecoin issuers to fully back their coins with high liquidity assets such as U.S. dollars and short-term Treasury bonds, and to publicly disclose their asset composition on a monthly basis. This transparent regulation will enhance market trust and encourage broader adoption of stablecoins by banks, retailers, and consumers.
This legislation not only has a profound impact on the U.S. cryptocurrency industry but has also sparked widespread discussion globally. Major financial centers like Hong Kong and the European Union are also accelerating their efforts in the stablecoin sector, reshaping the global stablecoin landscape. However, the act faces some criticisms, such as not restricting tech giants from issuing their own stablecoins, which may exacerbate monopolistic risks in the industry, as well as concerns about insufficient anti-money laundering measures.
Overall, the signing of the GENIUS Act injects legitimacy into the stablecoin industry, paves the way for digital assets to become everyday payment tools, and also triggers extensive discussions on future market competition and regulatory directions.
