Trump Signs GENIUS Act, Transforming U.S. Crypto Regulation

A landmark regulation, the GENIUS Act, aims to expand U.S. leadership in digital assets, boosting institutional trust and potentially reshaping the financial technology landscape.

Lauded by industry executives, the GENIUS Act represents a bold step for U.S. crypto regulation. President Trump, once a crypto skeptic, celebrated its signing as a financial technology revolution. This act targets stablecoin regulation specifically, creating a compliance framework that promises to enhance trust and liquidity in these digital assets.

In a ceremony attended by key Republican lawmakers, Trump stated, “I pledged that we would bring back American liberty and leadership.” The legislation’s framework is designed to facilitate U.S. banks and financial institutions in stablecoin issuance. This shift is expected to increase the market liquidity and pave the way for more mainstream crypto adoption in commerce.

Affecting digital assets like USDC, USDT, and USDP, the act opens new avenues for institutional funding. Industry insiders anticipate shifts towards compliance-focused stablecoin protocols, enhancing their market share. Though no immediate regulatory responses are published, experts expect an increase in oversight and innovation.

The act impacts the $250 billion stablecoin market significantly. As U.S.-issued stablecoins gain clarity, experts forecast increased capital inflows and stability in regulated products. Historical parallels, such as the EU’s MiCA framework, suggest potential price stability and inflows to leading protocols. These changes could benefit major networks like Ethereum and Solana, which host stablecoin activity. Experts are watching closely, predicting substantial financial and regulatory transformations that might redefine U.S. crypto leadership globally.

This could be perhaps the greatest revolution in financial technology since the birth of the Internet itself,” said President Donald Trump.