Posted on Monday, July 21, 2025
|
by Alan Jamison
|
0 Comments
|
President Donald Trump signed the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act into law over the weekend, the country’s first major federal cryptocurrency bill. The legislation is aimed at ensuring consumers and investors are protected from bad actors who attempt to manipulate the crypto market.
Stablecoins are a type of cryptocurrency tied to specific assets, such as the U.S. dollar or gold. They serve as an alternative to standard cryptocurrency that can be more volatile in value. Many in the crypto community believe that stablecoins are the wave of the future and could replace hard currency as a form of payment – but only if consumers are confident in the security of the novel technology.
At the signing ceremony for the bill, Trump reiterated his promise from the 2024 campaign trail to make the United States the world leader in cryptocurrency. “I pledged that we would bring back American liberty and leadership and make the United States the crypto capital of the world,” he said. “And that’s what we’ve done under the Trump administration.”
The White House released a statement providing the specifics of the law in greater detail, including a requirement for “100% reserve backing with liquid assets like U.S. dollars or short-term Treasuries and requires issuers to make monthly, public disclosures of the composition of reserves.”
Individuals or companies that issue stablecoins must also “comply with strict marketing rules to protect consumers from deceptive practices.” If a stablecoin becomes insolvent, the new law will prioritize “holders’ claims over all other creditors, ensuring a final backstop of consumer protection.”
The White House explained that the GENIUS Act will increase global demand for U.S. debt as well as bolster the U.S. Dollar’s position as the “global reserve currency by requiring stablecoin issuers to back their assets with Treasuries and U.S. dollars.”
Treasury Secretary Scott Bessent praised Trump and Congress for quickly passing the law and explained how it will impact the U.S. dollar’s dominance in a post on X.
“Stablecoins represent a revolution in digital finance,” Bessent said. “The dollar now has an internet native payment rail that is fast, frictionless, and free of middlemen. This groundbreaking technology will buttress the dollar’s status as a global reserve currency, expand access to the dollar economy for billions across the globe, and lead to a surge in demand for U.S. treasuries which back stablecoins.”
The law passed both chambers of Congress with bipartisan support. Democrats joined Republicans to vote for the law in both the Senate and the House. The bill passed through the Senate 68-30 with 18 Democrats joining Republicans to vote in the affirmative on June 17. In the House, 102 Democrats joined Republicans to send the bill to Trump’s desk in a 308-122 vote last Thursday.
Alan Jamison is the pen name of a political writer with extensive experience writing for several notable politicians and news outlets.
Read the full article here