President Trump Signs GENIUS Act, Marking Historic Win for U.S. Crypto Industry

President Donald Trump signed the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act into law on July 18, 2025, establishing the first major federal regulatory framework for cryptocurrencies in the United States. The legislation, focused on regulating stablecoins—digital currencies pegged to stable assets like the U.S. dollar—represents a significant milestone for the crypto industry, which has long sought clarity to foster mainstream adoption. The signing, celebrated at a White House ceremony attended by industry leaders and lawmakers, aligns with Trump’s campaign pledge to make the U.S. the “crypto capital of the world.”

Key Provisions of the GENIUS Act

The GENIUS Act introduces a federal framework for stablecoins, which currently dominate a $267 billion market led by issuers like Tether and Circle. Key components include:

• Regulatory Oversight: The Federal Reserve will oversee major bank issuers, while the Office of the Comptroller of the Currency (OCC) will regulate nonbank issuers managing over $10 billion in stablecoins. State regulators may oversee smaller issuers meeting specific criteria.
• Consumer Protections: Stablecoin issuers must maintain one-to-one reserves with low-risk assets, conduct monthly disclosures, and comply with annual audits and anti-money-laundering measures to ensure transparency and stability.
• Market Expansion: The law enables banks, fintechs, and retailers to issue stablecoins, potentially integrating them into mainstream payment systems and reducing transaction costs compared to traditional methods like credit cards or wire transfers.

The bipartisan bill passed the Senate in June with a 68-30 vote and the House on July 17 with a 308-122 margin, reflecting broad support despite initial resistance from conservative Republicans and some Democrats.

A Turning Point for Crypto

The GENIUS Act is the cornerstone of what House Republicans dubbed “Crypto Week,” which also saw the passage of two other bills: the Clarity Act, defining regulatory roles for digital assets, and the Anti-CBDC Surveillance State Act, barring the Federal Reserve from issuing a central bank digital currency (CBDC). These bills await Senate approval. Trump hailed the legislation as a “massive validation” of the crypto industry, joking that the acronym GENIUS was named after him. “This is a hell of an act,” he said at the signing, attended by executives from firms like Robinhood, Tether, and Gemini.

Proponents, including House Financial Services Chairman French Hill, argue the law will bolster consumer confidence, foster innovation, and strengthen the U.S. dollar’s global dominance by enabling digital transactions with lower fees and instant settlement. Treasury Secretary Scott Bessent projected the stablecoin market could grow to $2 trillion by 2030.

Controversy and Criticism

The legislation faced criticism from Democrats like Rep. Maxine Waters and Sen. Elizabeth Warren, who labeled it a “light-touch concession” that fails to address conflicts of interest, particularly Trump’s ties to World Liberty Financial, a crypto venture in which his family holds a 60% stake. The firm launched USD1, a stablecoin, in spring 2025, and Trump reported earning $57.35 million from token sales in 2024. Critics argue the bill’s provision banning Congress members and their families from profiting off stablecoins does not extend to the president, raising concerns about potential self-enrichment.

Sen. Jeff Merkley accused Republicans of “rubberstamping Trump’s crypto corruption,” while consumer advocacy groups warned that the bill’s “weak” regulations could mislead consumers into perceiving stablecoins as safer than they are. Despite these concerns, 102 House Democrats and 18 Senate Democrats supported the bill, viewing it as a necessary step to regulate the “Wild West” crypto market.

Industry and Market Impact

The crypto industry, which invested over $250 million in the 2024 election cycle to back pro-crypto candidates, celebrated the GENIUS Act as a step toward legitimacy. Bitcoin prices, near $118,000 after hitting a record $120,000, and Ether, up 2% at $3,500, reflect market optimism. Industry leaders like Coinbase’s Kara Calvert and Aptos Labs’ Avery Ching predict the law will spur innovation, attract institutional investment, and position the U.S. as a leader in digital finance.

However, some X users expressed mixed sentiments, with @ArtificialCZ noting the law favors large players over decentralized finance (DeFi) innovators, while @SoniaTheCrypto warned of potential market volatility pending the signing’s impact.

Looking Ahead

The GENIUS Act is seen as a first step in broader crypto regulation, with the Clarity Act potentially addressing conflicts of interest and market structure. Trump’s administration, supported by crypto-friendly appointees like SEC Chairman Paul Atkins, is poised to further loosen restrictions, including dropping enforcement actions against major crypto firms. As the industry anticipates more legislative wins, critics urge stronger safeguards to protect consumers and address ethical concerns surrounding political ties to crypto ventures.