President Trump made history on Friday by signing the GENIUS Act into law, creating the first federal regulatory framework for dollar-backed stablecoins in the United States. During the White House signing ceremony, Trump declared his commitment to making America “the crypto capital of the world,” fulfilling a key campaign promise to the digital asset industry. This landmark legislation represents the culmination of what supporters have dubbed “Crypto Week,” following the passage of two additional crypto-friendly bills through the House of Representatives.
The new law establishes clear guidelines for how US companies can issue and manage dollar-backed stablecoins for payments, providing these digital assets with unprecedented federal legitimacy. Under the framework, stablecoin issuers must maintain reserves in cash or US Treasury securities, undergo regular audits, and publicly disclose their holdings and redemption processes. The Federal Reserve and Office of the Comptroller of the Currency will oversee larger issuers with $10 billion or more in assets, while state regulators will supervise smaller operators.
Wall Street has responded enthusiastically to the regulatory clarity, with major financial institutions signaling their intent to enter the stablecoin market. JPMorgan Chase CEO Jamie Dimon and Citigroup CEO Jane Fraser both announced plans to explore stablecoin offerings, marking a significant shift for traditional banking giants. Crypto-related stocks have surged in anticipation, with companies like oinbase">Coinbase, Robinhood, and Circle seeing substantial gains as investors bet on increased mainstream adoption.
The legislation is expected to catalyze significant growth in the $260 billion stablecoin market, with Treasury officials noting potential impacts on US dollar dominance and government debt demand. While proponents highlight benefits such as near-instant settlement and enhanced cross-border transactions, some concerns remain about potential risks including investor panic runs. The law notably prohibits Congress members from profiting from stablecoins while exempting Trump’s family, a provision that sparked debate during the legislative process.
