President Donald Trump recently signed the “Genius Act,” marking a significant step in the regulation of stablecoin cryptocurrencies. The signing took place at the White House in Washington, D.C., on July 18, 2025. This law aims to develop a regulatory framework for stablecoins, which are digital currencies linked to a stable asset like the U.S. dollar, while also expanding oversight of the cryptocurrency industry.
With bipartisan support, the House of Representatives passed the GENIUS Act, a bill that President Trump has highlighted as a key priority for his administration. Just a month prior, it successfully cleared the Senate. The legislation is designed to make stablecoins more accessible and encourage their integration into the mainstream financial system.
President Trump’s stance on cryptocurrencies has evolved significantly over time. Once critical of the digital currency trend, he now presents himself as a supporter, advocating for the U.S. to lead in the cryptocurrency space. Recently, he launched his own crypto meme coin and stated that he views cryptocurrencies as a powerful industry that the United States has excelled in, hence, he aims to position the country as the global crypto capital.
The passage of the GENIUS Act is intended to enhance public trust in stablecoins and facilitate their issuance by banks and similar entities, potentially stimulating growth in the digital currency market. Rep. French Hill, chairman of the House Financial Services Committee, emphasized that their efforts in Congress aimed to provide clarity regarding payment stablecoins, marking a historic moment with the passing of this legislation.
Despite the bipartisan support, some concerns were raised by Democrats, including Rep. Maxine Waters, regarding the implications of the bill. Critics argue that it may not sufficiently prevent public officials from profiting off their personal cryptocurrencies or handle issues related to anonymous transactions adequately.
Trump’s connection to the cryptocurrency world has deepened, as his family reportedly owns a significant stake in a firm that recently launched a stablecoin, further blurring the lines between his political actions and personal financial interests. However, the White House maintains that there are no conflicts of interest due to the management of Trump’s assets in a trust handled by his children.
It will take time for the effects of the bill to materialize, as federal regulators are tasked with creating specific regulations over the next six months. In conjunction with the GENIUS Act, the House also passed the CLARITY Act, which sets the groundwork for a clear market structure by determining oversight between the Securities and Exchange Commission and the Commodities Futures Trading Commission for various assets.
This legislative development could pave the way for innovation and growth in the cryptocurrency industry, signaling hope for a more structured market environment where stablecoins can thrive.