President of the United States Donald Trump has officially signed the “Guidance and Establishment of National Innovations for US Stablecoins” (GENIUS) Act, which has become the first federal regulation aimed at governing and legalizing the issuance of stablecoins in the country.
This is reported by Finway
Key Provisions of the GENIUS Act
The new law establishes clear rules for stablecoin issuers, requiring them to fully back digital assets with liquid instruments, including the US dollar. It also mandates an annual audit for large companies with a market capitalization exceeding $50 billion. Special attention is given to foreign issuers: companies from jurisdictions under sanctions are prohibited from entering the US market.
At the signing ceremony, leaders from major cryptocurrency companies were present. Donald Trump emphasized the importance of this step for the country’s financial leadership and criticized the actions of former President Joseph Biden, who, according to him, hindered the industry’s development. He also humorously noted that the law is named in his honor, hinting at his own uniqueness.
“Today we are making a giant leap to cement America’s dominance in global finance and cryptocurrency by signing the landmark GENIUS Act,” Trump stated.
Reactions from Market Participants and Experts
The document received support from the majority in both chambers of the US Congress, although some Republicans expressed objections, and certain Democrats, including Congresswoman Maxine Waters, raised concerns about potential conflicts of interest due to Trump’s business interests in World Liberty Financial, which also operates with stablecoins.
Circle CEO Jeremy Allaire described GENIUS as “one of the transformative laws of the decade.” Meanwhile, Anchorage Digital CEO Nathan McCauley highlighted the industry’s achievement:
“GENIUS is the first major piece of legislation on digital assets approved by Congress after years of efforts from both the public and private sectors that led to this bipartisan milestone,” McCauley stated.
The ceremony was also attended by Coinbase CEO Brian Armstrong along with the company’s top management. The organization called the passage of GENIUS a “historic moment that will show the world that the US is ready to lead the future of money.”
Most leaders in the cryptocurrency industry believe that the new law sets modern standards for the market not only in the US but also globally. Analysts note that the GENIUS Act could intensify competition in the stablecoin market, particularly threatening Tether’s dominance in the country.