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President Donald Trump on Friday signed the GENIUS Act, the first major federal legislation regulating cryptocurrency, marking a pivotal moment for the fast-growing industry and setting the U.S. on a path to become, in Trump’s words, “the crypto capital of the world.”
The bill, which focuses on the regulation of stablecoins—digital currencies pegged to assets like the U.S. dollar—passed the House with bipartisan support Thursday, following earlier Senate approval. It represents a significant policy win for Trump, who has reversed his prior skepticism of cryptocurrency and has recently promoted his administration’s role in crypto innovation.
“I pledged that we would bring back American liberty and leadership and make the United States the crypto capital of the world. And that’s what we’ve done under the Trump administration,” Trump said during the signing ceremony.
Background: From Skeptic to Advocate
Once a vocal critic of crypto, Trump has in recent years embraced digital currencies as part of his broader message of deregulation and financial freedom. In 2024, he launched his own meme coin, $TRUMP, and began describing crypto as a “very powerful industry” where the U.S. has “dominated.”
Stablecoins serve as a gateway for buyers to enter the crypto space, offering a more stable alternative to volatile coins like Bitcoin. The GENIUS Act streamlines the process for banks and other financial entities to issue and manage stablecoins, aiming to bolster consumer trust and expand mainstream adoption.
Legal Framework and Industry Expectations
Under the new law, regulators have six months to craft the detailed rules that will govern stablecoin issuance and oversight. Supporters say the law will modernize U.S. financial regulations, attract innovation, and give legitimacy to a previously underregulated sector.
“Our years of diligent work in Congress to bring clarity to payment stablecoins have reached a historic turning point,” said Rep. French Hill (R-Ark.), chair of the House Financial Services Committee. “President Trump called on Congress to send him landmark legislation by August, and we delivered.”
The law’s passage follows a lengthy stalemate among House Republicans, with the bill stalling for nine hours before advancing to debate.
Conflict Allegations and Political Backlash
Despite bipartisan backing, the bill has drawn criticism over potential conflicts of interest involving the Trump family’s crypto ventures. Democratic Rep. Maxine Waters, ranking member on the House Financial Services Committee, raised concerns about World Liberty Financial—a firm with apparent Trump family ties—which launched a stablecoin called USD1 earlier this year.
Waters warned the GENIUS Act “creates the appearance of a federal framework for stablecoins, but it does not provide the federal government with the full authority it needs.” She also pointed to the Trump family’s 60% stake in World Liberty Financial, whose website previously referred to Trump as “chief crypto advocate” and now lists him as “co-founder emeritus.”
World Liberty Financial has denied any official connection to the U.S. government, stating it is “a private company with no ties to the U.S. government.”
The White House also pushed back on conflict-of-interest claims, saying the president’s assets are held in a trust managed by his children.
Broader Crypto Legislation Moves Forward
In addition to the GENIUS Act, the House passed the CLARITY Act, a broader market structure bill that delineates oversight between the Securities and Exchange Commission (SEC) and the Commodities Futures Trading Commission (CFTC) for various digital assets. That bill now heads to the Senate.
While the GENIUS Act focuses on stablecoins, the CLARITY Act seeks to resolve years of regulatory uncertainty about how crypto assets are classified and governed.
Next Steps: Implementation and Oversight
The law gives federal regulators six months to implement rules around licensing, reserve requirements, consumer protections, and transparency for stablecoin issuers. Crypto firms, banks, and watchdog groups alike will be watching closely as agencies roll out the framework.
For now, Trump and his allies are hailing the legislation as a milestone—one that may solidify his legacy in the digital economy, even as ethical questions swirl around his personal stake in the industry’s future.
“America leads, or America follows,” Rep. Hill said. “With this law, we lead.”
