On July 18, 2025, President Donald Trump signed the GENIUS Act (Guiding and Establishing National Innovation for Stablecoins) into law, establishing the first federal regulatory framework for U.S. dollar-backed stablecoins. The legislation mandates issuer licensing, reserve requirements with a 1:1 backing, audits, consumer protections, and bans interest-bearing stablecoin tokens. The law aims to create a secure and clear regulatory environment for stablecoins, facilitating their use as reliable tools for everyday finance, including instant and low-cost global transfers. The GENIUS Act is viewed as a major milestone for the cryptocurrency industry, promoting innovation and securing the U.S. dollar's dominance as the world's reserve currency. The bill was passed by Congress shortly before the signing ceremony, which was attended by industry leaders and included acknowledgments to major crypto firms such as Coinbase, Kraken, Circle, Tether, Visa, Robinhood, and Gemini. The legislation is expected to take effect by early 2027 and is seen as a pivotal step toward mainstream adoption of digital assets in the U.S. financial system. Senate leaders including Tim Scott, Bill Hagerty, and Cynthia Lummis were noted for their roles in advancing the bill. The signing marks a significant shift in U.S. digital asset policy, positioning America to lead the global digital currency revolution and enhance its status as the crypto capital of the world.
The GENIUS Act: A New Era for Stablecoins Begins – What the Fintech, Investment and Banking Industry Sectors Need to Know? https://t.co/YAFEdSCBoH | by @Baker_Donelson
The Genius Act is now law. ▪️ Stablecoins must be fully backed ▪️ Regular audits are mandatory ▪️ Regulatory clarity finally in place This is the equivalent of the Bitcoin ETF moment, but for stablecoins. And $260B+ of them are already circulating. Now imagine version 2.
Congress Enacts Comprehensive Stablecoin Legislation: Key Provisions and Implications of the GENIUS Act https://t.co/jr7JZedUsL