President Donald Trump on Friday signed into law the nation’s first piece of landmark legislation to regulate stablecoins, as leaders work to position the United States as the crypto capital of the world.
The Guiding and Establishing National Innovation for U.S. Stablecoins, or GENIUS Act, S. 1582, will establish a regulatory framework for payment stablecoins, which are digital assets pegged to the US dollar. It sets forth which entities can issue stablecoins, including banks and insured depository institutions; nonbank entities, some uninsured national banks; and federal branches approved by the Office of the Comptroller of the Currency; among others. It also lays out requirements for issuing stablecoins, including those related to risk management, capital, and liquidity.
“President Trump was crystal clear on the campaign trail: under his leadership, the United States will be the crypto capital of the world. With his signature on the GENIUS Act, we’ve made history and have delivered important regulatory clarity for the stablecoin industry,” said U.S. Sen. Tim Scott (R-SC), chairman of the Senate Banking, Housing, and Urban Affairs Committee.
“I’m grateful to the president and my colleagues for their tireless efforts and leadership on this legislation, which will not only support working families, small businesses, and communities across America with faster, cheaper, and more accessible payments but will also solidify the U.S. dollar’s dominance across the world,” Scott said.
The GENIUS Act was passed by the U.S. House of Representatives on July 17 by a vote of 308 to 122, while the U.S. Senate passed the bill on June 17.
“President Trump’s signature on the GENIUS Act marks the turning point in years of collaboration between Congress, the Executive Branch, and stakeholders,” House Committee on Financial Services Chairman French Hill (R-AR) said. “This is a historic day for American innovation and consumer protection as payment stablecoin legislation is now law. Our efforts don’t stop here, and I’ll continue to work with President Trump and the Senate to ensure critical market structure legislation will reach the President’s desk.”
The House on July 17 also passed two other cryptocurrency bills, including the Digital Assets Market Clarity Act, or CLARITY Act, which passed out of the House on a 294 to 134 vote. The CLARITY Act would establish a framework for cryptocurrency regulation with oversight by the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) for the sale of digital assets.
The Anti-CBDC Surveillance State Act, H.R. 1919, would prevent the Federal Reserve from issuing a central bank digital currency. That bill was approved by the House in a 219-210 vote.
Both bills now move to the U.S. Senate for confirmation.
“Today is a landmark moment for our industry,” said Blockchain Association CEO Summer Mersinger. “By signing the GENIUS Act into law, President Trump has enacted the most consequential digital asset legislation in United States history. This move cements America’s commitment to innovation, strengthens the role of the U.S. dollar globally, and provides critical clarity for developers, consumers, and financial institutions. We are grateful to the bipartisan coalition in Congress and to the President for recognizing that America must lead in digital asset innovation. This is a major step forward in ensuring the United States writes the rules for the financial technologies that will define the next generation.”