News Summary
President Trump has signed the GENIUS Act, the first major federal legislation aimed at regulating stablecoins in the U.S. The law establishes a framework for stablecoin issuance by financial institutions, addressing consumer protection and innovation in digital payments. The act has garnered bipartisan support in Congress and aims to ensure the U.S. remains a leader in payment technology. However, concerns over market risks and potential consumer protection inadequacies have also been raised.
South Carolina—President Trump signed the GENIUS Act on July 18, 2025, marking the first major federal legislation to regulate cryptocurrencies in the United States. This groundbreaking law specifically focuses on the stablecoin market, which is valued at approximately $250 billion. The House of Representatives passed the bill the day prior, with a vote count of 308-122, supported by 206 Republicans and 102 Democrats. The Senate approved the measure last month, also with broad bipartisan support.
The GENIUS Act, which stands for Guiding and Establishing National Innovation for U.S. Stablecoins, establishes a legal framework for stablecoins, allowing financial institutions, including banks and credit unions, to issue their own stablecoins. This new legal category specifies which digital currencies qualify as stablecoins, designed to maintain low volatility by pegging their value to stable assets, typically the U.S. dollar.
Supporters of the legislation argue that stablecoins can streamline financial transactions by enabling faster and more affordable payments. For example, stablecoins are seen as a means to facilitate instantaneous payment settlements for businesses and consumers alike. Companies such as Citigroup and JPMorgan Chase are actively considering the integration of stablecoins into their operations, while retail giants like Walmart and Amazon are exploring opportunities to issue their own versions.
As part of its focus on consumer protection, the GENIUS Act introduces regulatory “guardrails” for stablecoin issuers. Notably, South Carolina Senator Tim Scott, a co-sponsor of the bill, characterized the legislation as crucial for maintaining America’s leadership in payment innovation while simultaneously safeguarding consumer interests and national security. Other prominent co-sponsors include Senators Bill Hagerty, Kirsten Gillibrand, Angela Alsobrooks, and Cynthia Lummis.
Despite the act’s aim to provide stability and security within the cryptocurrency realm, there are concerns regarding potential risks. Stablecoins, although designed to minimize price volatility, can still experience significant risks such as “depegging” from their underlying assets. Rating agency S&P Global has issued warnings that market volatility and liquidity issues may impact stablecoins adversely. Critics of the GENIUS Act caution that the legislation may inadequately protect consumers and could introduce systemic risks reminiscent of previous financial crises.
The signing ceremony for the GENIUS Act welcomed members of Congress, along with executives from various cryptocurrency and financial firms. During the event, President Trump emphasized the act’s significance, stating that it would position the U.S. ahead of global competitors like China and Europe. His administration has actively pursued a forward-thinking approach to cryptocurrency regulation, including commitments to maintain the government’s Bitcoin holdings. The GENIUS Act also accompanies two additional bills: the Clarity Act, which regulates digital commodities, and the Anti-CBDC Surveillance State Act, which prohibits the Federal Reserve from issuing a retail central bank digital currency.
Investor reaction to the legislation has been positive, with notable increases in cryptocurrency values immediately following the signing. As of July 17, 2025, Bitcoin saw a rise of 1.40% to $120,584.80, while Ethereum climbed by 3.41% to $3,486.86, and shares of Coinbase rose by 3.2% to $410.75. However, it is worth mentioning that Trump’s family has disclosed financial stakes in the cryptocurrency market, prompting discussions surrounding potential conflicts of interest connected to the legislation.
As the U.S. embarks on a new regulatory landscape for stablecoins, stakeholders and consumers alike will be closely monitoring the implementation and impacts of the GENIUS Act, assessing its effectiveness in shaping the future of the cryptocurrency market in the country.
Deeper Dive: News & Info About This Topic
- CBS News
- Wikipedia: Cryptocurrency
- Reuters
- Google Search: GENIUS Act
- NBC News
- Google Scholar: Stablecoins
- Axios
- Encyclopedia Britannica: Cryptocurrency
- Fox News
- Google News: Stablecoins Legislation
- USA Today
Author: HERE Greenwood
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