US President Donald Trump has signed the GENIUS Act, the first major federal law regulating cryptocurrency in the United States, signalling a significant shift in national policy and reinforcing his administration’s support for the digital currency sector. The law notably streamlines the process for financial institutions to issue stablecoins.
Passed with strong bipartisan backing in both chambers of Congress by a vote of 308-122, the GENIUS Act establishes a clear federal regulatory framework, providing much-needed clarity for the burgeoning stablecoin market, which is estimated to be worth $250 billion. The legislation requires stablecoins to be fully backed by liquid assets such as US dollars or short-term Treasury bills, along with monthly public disclosures of reserves, measures intended to protect consumers and ensure stability.
The GENIUS Act’s passage followed a nine-hour delay in the House due to intra-party disagreements, but eventually moved forward after compromise. Alongside this bill, the House also approved the CLARITY Act, which proposes regulatory guidelines for various crypto assets and will next be considered by the Senate.
Federal regulators are now tasked with developing detailed rules within six months to implement the new law. While immediate effects for consumers may be limited, supporters believe the GENIUS Act lays a foundation for greater mainstream adoption, innovation, and stability within the US crypto ecosystem.
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