Trump Signs Landmark GENIUS Act for Digital Currency Regulation

On Friday, President Donald Trump enacted the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, establishing federal guidelines for digital currency.

Prior to signing, Trump reflected on his commitment to position the U.S. as the “crypto capital of the planet,” a promise he made at a bitcoin conference in Nashville, Tennessee in July 2024. He emphasized that the regulations developed during his administration would be shaped by supporters of the industry.

“I promised to restore American freedom and leadership, making the United States the world’s crypto hub,” Trump stated. “And we have achieved that, pushing this vision even further under my administration.”

Stablecoins, which are digital currencies linked to stable assets like gold or the U.S. dollar, aim to maintain consistent pricing. “As I assured last year, the GENIUS Act offers a straightforward regulatory framework to unlock the massive potential of dollar-backed stablecoins,” Trump explained. “This could be the most significant advancement in financial technology since the internet’s inception.”

The GENIUS Act mandates public monthly disclosures of reserve competition and annual audits for issuers with market capitalizations exceeding $50 billion, as highlighted by the Senate Banking Committee that led the initiative.

The House approved the GENIUS Act with a vote of 308–122 following its Senate clearance in June with a 68–30 vote. Majority Whip Tom Emmer, R-Minn., stated that for too long, the digital asset industry in America has suffered from vague regulations and the Biden administration’s anti-crypto stance. “However, President Trump and this Congress are making significant strides to unleash America’s digital asset potential,” he said.

Twelve Republicans opposed the legislation, which has raised concerns, especially from lawmakers like Rep. Maxine Waters, D-Calif., regarding potential conflicts of interest given Trump’s promotion of a digital currency named $TRUMP. Waters warned that the approval of this bill could suggest Congress is accepting corruption and foreign influence.

In addition to the GENIUS Act, the House also passed two other bills on Thursday: the Digital Asset Market Clarity Act (CLARITY Act) to provide further regulatory clarity for digital assets, and the Anti-CBDC Surveillance State Act, targeting centralized digital currencies to protect individual privacy.