President Donald Trump signed the GENIUS Act on Friday, the first U.S. federal law regulating stablecoins. Celebrated at a White House ceremony, Trump called it “a giant step to cement American dominance of global finance and crypto technology,” praising it as a revolution akin to the birth of the internet.
The legislation requires issuers of US dollar-backed stablecoins to maintain dollar-for-dollar reserves in cash or short-term Treasury securities, overseen by state or federal regulators. Treasury officials said this framework will ensure stability, encourage innovation, and reinforce the global dominance of the U.S. dollar. Trump emphasized that maintaining the dollar’s reserve currency status was essential, comparing its loss to “losing a world war.”
The GENIUS Act represents a dramatic shift for Trump, who was once skeptical of crypto. Now an advocate, he declared a “Crypto Week,” attracting tech and crypto leaders including Coinbase’s Brian Armstrong, Robinhood’s Vlad Tenev, the Winklevoss twins, and Rumble’s Chris Pavlovski to the signing. Trump credited them with pioneering spirit and resilience, noting, “I got you guys out of so much trouble.”
The law passed Congress with bipartisan support after conservatives dropped demands to ban the Federal Reserve from issuing digital currency—an issue promised to be addressed in a defense bill later. Democrats failed to include a clause barring elected officials and their families from stablecoin ventures, which might have impacted Trump’s own ties to platforms like World Liberty Financial, according to news agencies.
Proponents believe the law brings legitimacy and predictability to the digital asset space after scandals like FTX’s collapse. Critics argue it lacks sufficient consumer protections and may expose taxpayers to bailouts.
Trump has further embraced crypto through executive actions, including creating a Strategic Bitcoin Reserve, appointing venture capitalist David Sacks as the first AI and crypto czar, and ending regulatory actions against firms like Coinbase and Robinhood.
