US President Donald Trump Signs GENIUS Act; Establishing Framework for Dollar-Backed Stablecoins

US President Donald Trump has signed a law to create a regulatory regime for US-dollar-pegged cryptocurrencies known as stablecoins. The bill, dubbed the GENIUS Act, passed the House with strong bipartisan support, 308-122, receiving the support from nearly half the Democratic members and most Republicans and is seen as a major step toward U.S. leadership in crypto finance. This is a milestone that could pave the way for the digital assets to become an everyday way to make payments and move money.
 
     
The law allows major financial institutions to issue their own US dollar-backed stablecoins. These digital assets must be backed by liquid reserves, like cash or short-term Treasuries. Issuers must also publish monthly reports on their holdings. It is also the first of two major crypto bills the president has urged Congress to pass this year.        
 
President Trump, joined by top crypto CEOs, including those from Coinbase, Circle, Tether, and Gemini, said at the signing ceremony that this is a giant step to cement American dominance in global finance and crypto. Stablecoins are designed to maintain a constant value, usually a 1:1 U.S. dollar peg, and their use has exploded, notably by crypto traders moving funds between tokens.
 
The industry hopes they will enter mainstream use for sending and receiving payments instantly. The new law requires stablecoins to be backed by liquid assets – such as U.S. dollars and short-term Treasury bills – and for issuers to disclose publicly the composition of their reserves monthly. Crypto companies and executives have argued such legislation will enhance stablecoins’ credibility and make banks, retailers and consumers more willing to using them to transfer funds instantly.