Key Insights:
- Trump signed the GENIUS Act, the first major U.S. law regulating dollar-pegged stablecoins.
- Stablecoin issuers must now hold liquid assets and disclose reserves monthly under the new law.
- The stablecoin market could grow to $2 trillion by 2028, according to Standard Chartered estimates.
U.S. President Donald Trump has signed the GENIUS Act into law which is the first regulatory framework of stablecoins in the country. This act set some strict regulations around U.S-dollar-pegged digital assets that seek to add legitimacy, transparency, and accountability to stablecoins issuers. The step also put the U.S. in the lead in the international competition to regulate digital assets.
Donald Trump Signs Stablecoin Bill GENIUS Act Into Law
In recent crypto news, President Donald Trump signed the GENIUS Act during a ceremony held at the White House. This is the initial United States domestic law to target regulation of dollar-backed stablecoins. There was a solid bipartisan support of the bill with 308 members voting in its favor.
Stablecoin issuers will be put under obligation by the GENIUS Act to collateralize tokens at full with liquid assets like U.S. dollars and short-term Treasury bills. These issuers must also disclose the composition of their reserves monthly to increase transparency and public confidence.
The goal is to encourage mainstream use of stablecoins for payments and fund transfers.
Crypto Industry Secures Regulatory Milestone
The signing follows a prolonged period of uncertainty in the crypto industry, which has repeatedly called for clear regulatory guidelines. Industry players believe clear crypto regulations will enable stablecoins to play a role in consumers making daily financial transactions.
According to Standard Chartered, the stablecoin market, currently valued at $260 billion, could grow to $2 trillion by 2028 under the new law. The GENIUS Act may also stimulate demand for Treasury bills, as issuers will need to maintain large reserves.
JPMorgan has projected that stablecoin issuers could become among the top three buyers of T-bills in the coming years.
Trump described the signing as a “validation” of the crypto industry’s efforts and expressed support for making the U.S. a global hub for blockchain innovation. The administration noted that the bill gives the U.S. an edge over China and Europe in regulating digital assets.
CLARITY and Anti-CBDC Acts Await Senate Review
The GENIUS Act is part of a broader legislative effort that includes the CLARITY Act and the Anti-CBDC Act. While the stablecoin framework has now been signed into law, the other two bills still require Senate approval.
The CLARITY Act seeks to define digital assets and their classification, while the Anti-CBDC Act would limit the issuance of central bank digital currencies.
Crypto advocates and several lawmakers are pushing for the quick passage of these bills. They argue the complete legislative package will form the basis for a competitive and secure digital financial system in the U.S.
Notably, President Donald Trump also signed an executive order in earlier this year creating a strategic Bitcoin reserve.
Lawmakers and Industry Leaders React to GENIUS Act News
Following the GENIUS Act news, pro-crypto Senator Cynthia Lummis congratulated the move, calling it a breakthrough for the U.S. digital economy. She said the GENIUS Act reinforced the dollar’s leadership in global finance and supports America’s digital future.
Coinbase CEO Brian Armstrong also commented on the bill’s enactment. He noted that the new legal foundation for stablecoins initiates a fresh phase for crypto in the U.S. Armstrong highlighted that work now turns to building the full market structure before the administration’s September 30 deadline.
Despite previous opposition, the GENIUS Act passed with broad support, indicating a growing consensus in Washington to embrace digital asset oversight.
