U.S. President Donald Trump signed into law the GENIUS Act, the first federal legislation to regulate stablecoins—cryptocurrencies pegged to the U.S. dollar or similar liquid assets. The Act was passed with strong bipartisan support in both the House and Senate, reflecting growing recognition of stablecoins’ significance in the evolving financial landscape. By requiring 100% reserve backing with liquid assets such as U.S. dollars and short-term Treasury bills, the law enhances consumer protection and promotes transparency through mandatory monthly disclosures of reserve compositions.
Trump praised the law as a “massive validation” for the crypto industry and a crucial step toward making the United States the global leader in digital assets. The GENIUS Act not only strengthens the dollar’s status as the world’s reserve currency by driving demand for U.S. Treasuries but also implements stringent anti-money laundering and sanctions compliance measures. Regulators will now have six months to develop detailed rules, ensuring stablecoin issuers can effectively mitigate illicit activities and protect consumers.
The new legislation is expected to unlock the stablecoin market’s potential, which is currently valued at more than $260 billion and could expand to $2 trillion by 2028, according to industry analysts. Stablecoins facilitate near-instant, low-cost transactions and hold promise to integrate cryptocurrencies into mainstream finance, including payments at retailers and transfers between consumers. By aligning federal and state regulations, the Act provides a clear and consistent framework to support responsible innovation and adoption across the U.S.
Despite widespread support, some critics raised concerns about potential conflicts of interest—especially in light of crypto ventures affiliated with the Trump family—and cautioned that the law does not give the government full authority over stablecoins. Nonetheless, the GENIUS Act marks a historic milestone in crypto regulation, fulfilling Trump’s campaign promise to make America the “crypto capital of the world” and setting the stage for accelerated growth and legitimacy in the digital currency market.