- President Trump signed the GENIUS Act into law.
- The Act targets stablecoin regulatory clarity.
- Seeks to establish U.S. as a crypto leader.
Donald J. Trump officially signed the GENIUS Act into law on July 18, 2025, at the White House, aiming to overhaul U.S. stablecoin regulation.
The GENIUS Act signals a significant shift for U.S. crypto regulation, particularly regarding stablecoins. Immediate market reactions include potential increases in trust and adoption within crypto markets.
The GENIUS Act mandates a federal regulatory system for stablecoins, requiring 100% reserve backing and monthly disclosures. Trump, once a skeptic, declared the U.S. the crypto capital of the world during the signing event, witnessed by industry leaders.
The regulation affects stablecoins by requiring them to prove and disclose full reserves, aiming to enhance market trust. Key participants included executives from Robinhood, Tether, and Gemini, who were present at the ceremony.
Immediate industry effects include increased investor confidence and potential investment inflows. The regulatory framework promotes transparency and consumer protection, aiming to fortify the U.S. dollar’s reserve status and support national security.
The GENIUS Act is the first major U.S. law concerning cryptocurrency, providing a regulatory framework for stablecoins comparable to international precedents like the EU’s MiCA. Expected outcomes include enhanced trust and regulatory certainty, bolstering institutional confidence.
The Act could lead to improved on-chain activity as regulatory clarity drives institutional interest and stablecoin adoption. Historical trends suggest regulatory progress can attract capital to compliant assets, potentially benefiting protocols using U.S. stablecoins.
“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. The Genius Act creates a clear and simple regulatory framework to establish and unleash the immense promise of dollar-backed stablecoins.” – President Donald J. Trump
