Trump Signs GENIUS Act to Regulate Stablecoins

President Donald Trump officially signed the GENIUS Act into law on July 18, 2025, establishing a federal regulatory framework for stablecoins in Washington, D.C.

The GENIUS Act serves as the first federal law regulating stablecoins, aimed at securing USD’s position in global markets and increasing treasuries demand.

The GENIUS Act, officially signed by President Donald Trump, introduces a regulatory framework for stablecoins. All stablecoins must be backed 1:1 by liquid assets and adhere to strict standards. The legislation underscores federal leadership in the evolving financial landscape.

The newly enacted law outlines precise reserve and disclosure guidelines for stablecoin issuers. Treasury Secretary Scott Bessent emphasized its role in strengthening the dollar and increasing US Treasuries’ demand. Financial markets anticipate significant impacts from this legislative action.

The act seeks to benefit USD-backed stablecoins like USDC and USDT, prompting a shift in stablecoin reserve capital toward U.S. Treasuries. Analysts predict heightened stablecoin issuance, aligning with industry stakeholders’ support for pro-crypto policies.

Industry reactions hint at burgeoning activities in USD-backed stablecoin sectors, with investments channeled into new platforms and technologies. The GENIUS Act is marked by its pioneering stance in federal finance regulation, offering clarity and encouraging stablecoin adoption.

Some foresee regulatory actions potentially reshaping the current crypto market dynamics. Insights predict compliance-driven growth in stablecoin-related infrastructures, leveraging regulatory backing and novel economic opportunities in the global financial ecosystem.

Donald Trump, President of the United States, “This could be perhaps the greatest revolution in financial technology since the birth of the Internet itself. A lot of people are saying that. I don’t know… I’m saying yes. I think it’s great that you’re involved.” Source