In a historic development for the cryptocurrency industry, U.S. President Donald Trump on Friday officially signed into law a bill that creates a regulatory framework for stablecoins — a class of dollar-pegged digital assets. Known as the GENIUS Act, the legislation garnered strong bipartisan support, passing the House of Representatives with 308 votes in favor to 122 against, including backing from nearly half of Democrats and most Republicans. The U.S. Senate had previously cleared the bill as well.
“This signing is a massive validation of your hard work and pioneering spirit,”
said U.S. President Donald Trump at the signing ceremony attended by crypto executives, lawmakers, and government officials.
“It’s good for the dollar and it’s good for the country.”
The moment was celebrated by the crypto industry as a critical milestone toward mainstream adoption, ending years of uncertainty and calls for legal clarity.
The new legislation mandates stablecoins to be backed by liquid assets such as U.S. dollars and short-term Treasury bills. It also requires issuers to publicly disclose the composition of their reserves every month, a move designed to enhance credibility and consumer trust.
Stablecoins — digital tokens meant to maintain a constant value (usually 1:1 with the U.S. dollar) — have seen explosive growth in recent years. Initially used primarily by crypto traders for quick fund transfers between tokens, stablecoins are now poised to become mainstream tools for payments and money transfers, thanks to this new law.
According to CoinGecko, the stablecoin market is currently valued at over $260 billion. However, analysts at Standard Chartered estimate this could rise to a staggering $2 trillion by 2028, driven by regulatory clarity and institutional adoption.
The crypto industry, which donated over $245 million during the last U.S. elections to support pro-crypto candidates including Trump, sees the law as a huge leap toward financial integration.
Treasury Secretary Scott Bessent said,
“The new technology would buttress the dollar’s status as the global reserve currency, expand access to the dollar economy and boost demand for U.S. Treasuries, which back stablecoins.”
This suggests the law could have broader macroeconomic benefits, including strengthening the demand for U.S. government debt.
Several stablecoin firms such as Circle and Ripple are now seeking banking licenses to reduce costs and operate more efficiently without intermediaries.
President Trump has consistently shown support for cryptocurrency innovation. In March, he signed an executive order to create a strategic bitcoin reserve, and in January, he launched his own meme coin called $TRUMP. Trump also holds a partial stake in crypto firm World Liberty Financial.
“I pledged that we would bring back American liberty and leadership and make the United States the crypto capital of the world, and that’s what we’ve done,”
said Trump, addressing industry leaders.
Despite the wide praise, not everyone is on board.
“By failing to close known loopholes and protect America’s digital dollar infrastructure, Congress has risked making the U.S. financial system a global haven for criminals and adversarial regimes to exploit,”
warned Scott Greytak, Deputy Executive Director of Transparency International U.S.
Critics argue that the law should have included stronger anti-money laundering (AML) safeguards and restrictions on tech giants issuing their own stablecoins, which could give disproportionate power to already dominant firms.
While many large U.S. banks remain cautious, several are reportedly internally debating entry into the stablecoin and digital asset space. Initial moves could include pilot projects and strategic partnerships, particularly now that regulators are providing clearer support for crypto-based financial tools.
The signing of the GENIUS Act by President Donald Trump marks a pivotal moment for the future of digital finance in the United States. With bipartisan support, this new law provides the long-awaited regulatory clarity that could enable stablecoins to enter the mainstream economy.
By ensuring that stablecoins are backed by secure, liquid assets and requiring transparency from issuers, the law boosts confidence among consumers, financial institutions, and investors.
Trump’s strategic support for cryptocurrencies—backed by significant industry contributions—positions the U.S. as a global leader in the evolving digital currency space. The law may also increase demand for U.S. Treasuries and strengthen the dollar's position as the world’s reserve currency.
While concerns about AML gaps and tech monopolies persist, the GENIUS Act represents a monumental shift in how digital assets are perceived and regulated. It sets the stage for an era where crypto becomes a seamless part of everyday financial transactions.