Genius Act Officially Enacted: A Historic Regulation for U.S. Stablecoins

The U.S. government has officially enacted the Guiding and Establishing National Innovation for U.S. Stablecoins Act (Genius Act) after President Donald Trump signed the regulation on July 18, 2025. This law represents a major milestone in the digital asset industry by establishing the first federal legal framework for stablecoins—cryptocurrencies pegged to stable assets such as the U.S. dollar. This move marks a new era of legitimacy for the crypto sector.

A New Regulatory Framework

The Genius Act governs the issuance of stablecoins by banks, fintech companies, and non-bank financial institutions under key provisions, including:

• 100% reserve requirements in liquid assets such as U.S. dollars or Treasury bonds.

• Monthly audits and reserve reports to enhance public transparency.

• Consumer protection measures, including priority claim rights during insolvency and a ban on misleading promotions.

Additionally, the regulation requires compliance with Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) rules. Regulators are also granted the authority to freeze or even burn stablecoins when necessary.

Fast Legislative Process with Bipartisan Support

The Genius Act bill passed the Senate with a 68–30 vote on June 17, 2025.
Subsequently, the House of Representatives approved it with 308–122 votes on July 17, 2025, following intense debates within conservative circles.

President’s Speech and Public Response

During the signing ceremony, President Trump described the Genius Act as “a hell of an act” and jokingly suggested the law was named in his honor.
The White House emphasized that this regulation is designed to strengthen the U.S.’s position as a global leader in digital assets, with a mission to foster innovation while safeguarding the stability of the U.S. dollar.

Paul Atkins, former SEC official, called the Genius Act a “landmark” regulation that provides clear rules of the road for stablecoins. He stressed that the law would enhance both efficiency and security in digital transactions.

Impact on the Crypto Market

Following the enactment of this regulation, global crypto market capitalization surged past US$4 trillion, with Ether gaining 19% and Bitcoin hitting a new record near US$123,000.
Citi analysts project the stablecoin market could reach US$3.7 trillion by 2030.

However, some observers have raised concerns about potential dominance by Big Tech and strict government oversight, which could stifle innovation and limit competition.

The Genius Act is more than just a regulation; it is a strategic foundation that protects consumers, strengthens financial security, and fosters innovation within the stablecoin sector. While debates over monopoly and digital authoritarianism persist, this law is expected to position the United States as the crypto capital of the world, unlocking significant opportunities for the fintech and global digital asset industries.