President Donald Trump signed the GENIUS Act into regulation on July 18, pledging that the measure will safe “international dominance” in crypto expertise.
The laws offers the US its first federal framework for greenback‑backed stablecoins. Trump celebrated the passing of the invoice, saying:
“Crypto has gone up greater than any inventory. Crypto makes the greenback look good. Crypto is nice for the greenback, the nation.”
He added that the GENIUS Act positions the nation to guide the sector and vowed to approve broader crypto market construction laws earlier than the tip of the yr.
Senate Banking Committee rating member Tim Scott known as the statute “regulatory readability for the stablecoin business” and stated quicker, cheaper funds would “solidify the US greenback’s dominance internationally.”
Treasury Secretary Scott Bessent echoed the theme in an X publish, thanking Home Republicans for “actions that hold the promise” to make America the “crypto capital of the world.”
Stablecoin framework
The GENIUS Act creates a federal framework for issuing and overseeing cost stablecoins.
It assigns the Federal Reserve to license and supervise national-level, insured depository establishments, whereas allowing eligible, state-chartered corporations to mint dollar-pegged tokens in the event that they meet equal requirements on reserves, disclosures, redemptions, and threat controls.
Issuers should again each token with high-quality liquid belongings, akin to money, Treasury payments, or different short-dated authorities securities, that match their excellent liabilities and supply common attestation experiences.
The regulation additionally directs financial institution regulators to set examination schedules, ensures customers the fitting to redeem at face worth inside particular time frames, and requires that reserve belongings stay segregated until clients give specific consent for rehypothecation.
Final stretch
The Home cleared the GENIUS Act 307‑122 on July 17, someday after adopting a 215‑211 movement to rethink a procedural package deal that mixed the GENIUS Act with the CLARITY Act and the Anti‑CBDC Surveillance Act.
Lawmakers first bundled the three measures on July 16 to expedite flooring motion, however that decision didn’t represent enrollable textual content. Committee workers then ready the GENIUS language as a stand‑alone invoice that each chambers might go in equivalent kind.
The Senate permitted the consolidated model late on July 17, finishing the bicameral course of required for enrollment and presentation to the White Home.