On July 19, Beijing time, U.S. President Donald Trump officially signed the highly anticipated GENIUS Act in the East Room of the White House. This marks the completion of all legislative procedures for the bill, which is set to have a profound impact on the stablecoin industry. Notably, this is the first time in modern history that a U.S. president has signed a law specifically focused on cryptocurrency, ushering in a new chapter for the industry.
To commemorate this historic moment, the White House invited executives from prominent cryptocurrency companies such as Robinhood, Tether, and Gemini to witness the signing ceremony.
Earlier in the week, the U.S. Congress began deliberations on three major cryptocurrency bills led by the Republican Party: the GENIUS Act, the CLARITY Act, and the Anti-CBDC Act. Despite Trump’s public endorsement on Truth Social, the initial procedural vote on July 16 (Beijing time) failed with 196 votes in favor and 223 against, primarily due to opposition from 12 conservative Republican representatives who insisted on bundling the three bills together.
After 48 hours of negotiations, the legislative process resumed. Despite significant uncertainty—including a record 10-hour marathon vote on the Anti-CBDC Act—all three bills were ultimately passed on July 18. The GENIUS Act, the most pivotal of the three, was approved by the House with 308 votes in favor and 122 against, garnering rare bipartisan support. Meanwhile, the CLARITY Act passed with 294 votes in favor, and the Anti-CBDC Act narrowly passed with 219 votes.
As the GENIUS Act had already cleared the Senate, it was promptly sent to the White House for signing. The other two bills will proceed to the Senate for further review.
The GENIUS Act, formally titled the Guiding and Establishing National Innovation for US Stablecoins Act, was introduced on February 4 by Senators Bill Hagerty, Tim Scott, Kirsten Gillibrand, and Cynthia Lummis. It aims to establish a legal framework for the use of stablecoins in payments within the U.S. Key provisions include:
– **Definition of Payment Stablecoins**: Digital assets pegged to a fixed monetary value, backed 1:1 by USD or other highly liquid assets, and designed for payment settlements.
– **Dual Licensing**: Federal oversight for issuers with market caps exceeding $100 billion; state-level registration for smaller issuers (subject to federal-equivalent standards).
– **100% Reserve Requirement**: Reserves limited to cash, short-term U.S. Treasuries, or central bank deposits, segregated from operational funds. Monthly proof of reserve adequacy is mandatory.
– **Transparency and Disclosure**: Regular public reporting of reserve composition and redemption policies, with compliance audits by certified public accounting firms.
– **AML Compliance**: Issuers must adhere to Bank Secrecy Act requirements and fulfill anti-money laundering obligations.
– **User Protection**: Stablecoin holders are prioritized in bankruptcy proceedings.
– **Regulatory Clarity**: Payment stablecoins are explicitly excluded from securities, commodities, or investment company classifications.
The GENIUS Act represents a federal-level milestone for stablecoins, transitioning them from unregulated growth to a compliant financial instrument with legal backing. Symbolically, it also serves as a landmark endorsement for the broader cryptocurrency industry.
In an official statement, the White House praised the bill as “paving the way for the U.S. to lead the global digital currency revolution.” Trump echoed this sentiment during the signing ceremony, calling it “potentially the greatest revolution in financial technology since the inception of the internet.” He also acknowledged the cryptocurrency community’s long-standing challenges, stating, “You were once dismissed as insignificant, but this signing is a monumental validation.”
As the industry moves toward greater legitimacy, the future appears increasingly promising.
**Disclaimer**: The views expressed in this article are solely those of the author and do not constitute investment advice or legal recommendations. Readers are advised to comply with their local regulations.
