Trump Signs GENIUS Act: US Establishes Federal Stablecoin Framework

The signing of the GENIUS Act into law by President Donald Trump marks a pivotal moment for the cryptocurrency industry in the United States, establishing the first comprehensive federal framework for stablecoins. This legislative action not only formalizes the legal standing of these digital assets but also underscores the escalating influence of the crypto sector within Washington, integrating its operations into official U.S. policy and signaling a significant shift in the regulatory landscape.

• The GENIUS Act, signed by President Trump, establishes the first federal regulatory framework for stablecoins in the U.S.
• President Trump lauded the Act as potentially the “greatest revolution in financial technology since the birth of the internet itself.”
• Key Republican lawmakers and prominent industry leaders attended the signing, signaling strong alignment.
• Democratic lawmakers, notably Senator Elizabeth Warren, raised concerns over potential conflicts of interest related to President Trump’s reported crypto earnings.
• The Republican-controlled House has also advanced other pro-crypto legislation, including bills preventing a CBDC and reducing SEC authority over crypto.

The GENIUS Act: A New Regulatory Foundation

The newly enacted GENIUS Act specifically provides a defined legal structure for stablecoins, positioning them within a clearer regulatory environment. During the signing ceremony at the White House, President Trump characterized this development as potentially the “greatest revolution in financial technology since the birth of the internet itself,” signaling his administration’s strong endorsement of the digital asset space. He emphasized that the bill is beneficial for both the U.S. dollar and the broader economy, while also acknowledging its role in garnering support from crypto voters.

Industry Alignment and Political Backing

The signing ceremony was attended by key Republican figures instrumental in the bill’s passage, including Senator Bill Hagerty, who authored the legislation, along with Representatives French Hill and Tom Emmer, and Speaker Mike Johnson. Prominent industry leaders, such as Coinbase CEO Brian Armstrong, Circle CEO Jeremy Allaire, and Tether CEO Paolo Ardoino, were also present, reflecting the deep alignment between the administration and major players in the crypto ecosystem. This convergence highlights a strategic embrace of pro-crypto policies by the current administration, a stance that notably contrasts with previous approaches.

Scrutiny and Ethical Concerns

However, the bill has not been met with universal acclaim. Democratic lawmakers, led by Senator Elizabeth Warren, have voiced significant concerns, alleging potential conflicts of interest stemming from President Trump’s reported personal financial involvement in various crypto ventures. According to Bloomberg, the President has reportedly earned approximately $620 million from crypto projects during his second term, including an estimated $460 million from World Liberty Financial, a decentralized finance firm with which his family reportedly holds a financial stake. Furthermore, Reuters reported that the $TRUMP meme coin generated about $320 million in fees, though the exact portion flowing directly to entities controlled by the President remains unspecified. Senator Warren explicitly stated that the GENIUS Act could “accelerate Trump’s corruption” by expanding the stablecoin market and potentially making the President “the regulator of his own financial product.”

Broader Legislative Landscape and Future Outlook

Beyond the GENIUS Act, the Republican-controlled House has advanced other crypto-centric legislation. A bill preventing the Federal Reserve from developing a central bank digital currency (CBDC) passed with a 219-210 vote, largely without Democratic support. Additionally, the Clarity Act, aimed at reducing the Securities and Exchange Commission’s (SEC) authority over crypto, garnered significant bipartisan backing, passing 294-134 with 78 House Democrats voting in favor. These legislative efforts collectively underscore a broader strategy to foster a more permissive regulatory environment for digital assets. President Trump concluded the signing ceremony by reiterating his commitment to the industry’s expansion, affirming, “We’re going to be growing it even more, more than anyone ever thought.”