Trump's signing of the GENIUS Act for digital currencies
This week, U.S. President Donald Trump signed the "GENIUS Act", a historic legislation aimed at regulating stablecoins, a type of digital currency linked to stable assets like the U.S. dollar or Treasury bonds. The law was signed last Friday, July 18, 2025, after receiving broad support in Congress, passing the House of Representatives with a majority of 308 to 122 votes, and the Senate earlier.
Goals of the GENIUS Act
* Regulating stablecoins: The law establishes a comprehensive federal framework for regulating stablecoins, including full reserve requirements, regular disclosures, and regulatory oversight.
* Promoting transparency: The law requires stablecoin issuers to publish monthly reports on reserves to support market confidence.
* Protecting consumers: It aims to reduce the risks associated with stablecoins and ensure their financial stability.
* Enhancing the dollar's status: The law seeks to enhance the dollar's position as a global reserve currency by increasing demand for U.S. debt.
Importance of the law
* The GENIUS Act is considered the first comprehensive U.S. legislation on digital currencies, paving the way for the United States to become a global hub for cryptocurrency.
* Trump described the law as a "revolution in financial technology" and emphasized that it legitimizes stablecoins and integrates them into the broader financial system.
Controversy over the law
* Criticisms from Democrats: Some Democrats pointed out that the law may bolster Trump's personal interests, particularly with his involvement in digital currency projects like the $TRUMP meme coin, which has made significant profits.
* Central Bank Digital Currencies (CBDCs): The law sparked controversy over its impact on the development of government-issued digital currencies, as it prohibits the Federal Reserve from issuing a digital currency.
Accompanying laws
Alongside the GENIUS Act, Congress passed other laws such as the "CLARITY Act" aimed at broadly regulating the digital currency market, and a law prohibiting the Federal Reserve from issuing a new digital currency.
Conclusion
Trump's signing of the GENIUS Act represents a significant step towards regulating digital currencies in the United States, enhancing the dollar's status and protecting consumers. However, the law remains controversial due to its political and economic implications.