HKAN | Jul 19

Trump Signs ‘GENIUS Act’ to Regulate Stablecoins

On July 18, 2025, President Donald Trump signed the groundbreaking GENIUS Act into law, marking the first-ever federal regulatory framework for payment stablecoins—crypto assets pegged to assets like the U.S. dollar—at a White House ceremony attended by industry leaders from Coinbase, Kraken, Robinhood, Gemini, and others .

Key Highlights of the GENIUS Act

Requires payment stablecoins to be one-for-one backed and fully redeemable, with monthly reserve disclosures and annual audits .

Establishes clear supervision over issuers and custodians to enhance consumer protection and market stability .

Sets definitions for “payment stablecoins” and creates a joint federal–state oversight model, excluding the SEC and CFTC from primary stablecoin regulation .

Broad Industry & Policy Impact

The crypto market cap surged past $4 trillion following the news, driven by rallies in stablecoins, Ethereum, Solana, and XRP, while Bitcoin briefly reached a fresh all-time high .

Market experts view this as a major milestone for institutional and retail adoption, providing much-needed clarity after years of fragmented oversight .

Critics, including Sens. Elizabeth Warren and Josh Hawley, raised concerns about potential Big Tech influence, regulatory loopholes, and national security .

Final Take

With the GENIUS Act now signed into law, the U.S. has taken a historic step toward legitimizing stablecoins with federal guardrails, audit requirements, and accountability baked in. As stablecoin issuance ramps up, the long-awaited clarity may unlock new innovation—but not without continued scrutiny from skeptics.