Trump Has Officially Signed the GENIUS Act, Outlining Its Impact on the Cryptocurrency Sector.
The GENIUS Act: A New Era for Cryptocurrencies in the United States
The Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, the first U.S. legislation to regulate cryptocurrencies, was signed into law by President Donald Trump on July 18, 2025. This landmark Act aims to provide a comprehensive federal regulatory framework for stablecoins, setting key protections and regulations to ensure stability, transparency, and security in the crypto industry.
The GENIUS Act establishes strict licensing and issuer requirements, allowing only permitted payment stablecoin issuers to operate. These issuers include subsidiaries of insured depository institutions, federally qualified nonbank issuers, and Treasury-certified state-licensed entities.
One of the primary focuses of the Act is to ensure the stability of stablecoins. To achieve this, the Act mandates that stablecoins must be fully backed 1:1 by high-quality liquid assets such as U.S. dollars, Treasury securities, or Federal Reserve deposits.
Transparency and consumer protection are also key aspects of the GENIUS Act. Issuers are required to publish clear redemption policies, disclose monthly reserve compositions, submit monthly certifications, and undergo annual audits if their market capitalization exceeds $50 billion.
To combat money laundering and terrorist financing, the Act makes stablecoin issuers subject to the Bank Secrecy Act, requiring comprehensive anti-money laundering (AML) and sanctions compliance programs.
The GENIUS Act also introduces a tiered regulatory oversight regime. Issuers with more than $10 billion in stablecoins outstanding are federally regulated, while smaller issuers can opt for state supervision if the state is Treasury-certified.
While the Act has received bipartisan support, some concerns have been raised. House Democrats, including California Rep. Maxine Waters, have expressed concerns about the potential for foreign companies to buy influence. Democratic Senator Elizabeth Warren claims the Act doesn't go far enough in protecting consumers from financial risks. Other Senators, such as Jack Reed, have expressed similar concerns.
Despite these criticisms, the GENIUS Act is seen as a bold step forward by many. Republican Senator Tim Scott has praised the Act, stating that it could stoke the flames of a full-blown comeback for the crypto industry by providing more direction around how stablecoins can be used and offering protective measures to defend investors.
The Act could encourage wider adoption of stablecoins, and by extension, broader acceptance of crypto as a whole. Crypto companies such as Coinbase, Gemini, and Ripple have expressed their approval of the GENIUS Act. Additionally, crypto-focused PACs raised more than $197 million to elect pro-crypto politicians into office.
However, the potential loopholes in the GENIUS Act raise questions about whether it benefits everyday consumers or crypto leaders and their political allies. Notably, the Act does not prevent Trump's prior investment in World Liberty Financial, a family-backed crypto venture that earned him $57.4 million in income in 2024.
In summary, the GENIUS Act’s key protections for stablecoins and the crypto industry focus on regulated issuance, full asset backing, transparency, robust AML compliance, and a tiered regulatory oversight regime designed to safeguard consumers and the financial system while fostering innovation. While the Act has received bipartisan support, it remains to be seen how effectively it will address the concerns raised by its critics.
- The GENIUS Act, a landmark legislation in the United States, presents a new era for cryptocurrencies, with a focus on stablecoins, which are a key component of the finance and banking-and-insurance sectors.
- The Act introduces policy-and-legislation that ensures stability, transparency, and security in the crypto industry, mandating strict licensing and issuer requirements for stablecoin issuers.
- The real-estate and business sectors could see significant changes with the rise of stablecoins, as the GENIUS Act encourages their wider adoption and broader acceptance of crypto as a whole.
- The GENIUS Act also addresses general-news topics such as politics, with some criticism raised about potential foreign influence and the Act's effectiveness in protecting consumers from financial risks.
