A Major Milestone in US Crypto Regulation: GENIUS Act Passed
On July 19, President Donald Trump signed the historic GENIUS Act, giving the US its first ever federal framework for stablecoin’s regulations and clarity. This could be a changing phase for both US and outer worlds as the states count in top economies and traders.
During the signing ceremony, held in the White House, Trump called it a “giant step” and described it as “ This could be the greatest financial technology revolution since the birth of the internet.”
The signing of the GENIUS Act was the outcome of the “Crypto Week”, a dedicated 7 days packed sessions focusing on major crypto Bills.
Source: X
Breaking Down the GENIUS Act
Looking at first it appears as a regulation paper dedicated only for dollar backed stablecoins, the significant law is designed to boost public credentials, assist financial systems, and of course, preserve the status of the dollar in global terms. The new law states:
-
It binds the Stablecoins issuing under the strict rules and regulations. Only registered entities can create and manage Dollar-backed-coins.
-
The stablecoins must be equally valued with real dollars making a 1:1 ratio. The company has to have an equal number of dollars to the stablecoins it is issuing.
-
The whole circulation is under the Government authorities for the inspections and avoiding frauds, according to the GENIUS Act.
A law with Broad Political Support, and Debate
Although there was a time when Trump thought of digital currencies as a risky factor, now switched to a big supporter of it. Showing anonymous trust in the assets and even owning a family backed Crypto business. Along with him key figures from top industries including Brian Armstrong (Coinbase), Vlad Teneve (Robinhood), Chris Pavlovski (Rumble) and the Winklevoss twins (Gemini), were presented to show their support.
Even if the bill passed with bipartisan support, this was not an easy path. Conservatives try their best to ban digital dollar issuing from the Fed and on the other hand Democrats bid to block lawmakers from investing in stablecoin firms although they failed.
Tether and Circle CEOs Respond with Big Plans
Shortly after the announcement, CEOs of two stablecoin Giants, Tether and Circle, shared their strategic plans
Tether CEO Paolo Ardoino confirmed USDT, the world’s leading stablecoin, will register under the GENIUS Act “foreign issuer” route. USDT is issued out of El Salvador, but Tether intends to fully comply with US regulations and conduct new audits. The company also plans to introduce a new stablecoin specific to the United States for local users, while USDT would be utilized primarily for remittances and cross-border payments.
Source: X
Meanwhile, Circle CEO Jeremy Allaire welcomed the law by saying it is similar to his business’s ethics. USDC, the dollar-backed coin of Circle, is famous for public audits and regulatory openness.
The two officials, usually thought of as rivals, stood close to one another at the White House indicating how serious the industry is about this new era.
What comes next?
With the passing of this most popular GENIUS Act bill, US Firms now have a clear path to legally develop their framework in the crypto aspect too. Big companies like Tether and Circle will compete more directly and open opportunities for others also. This could lead to the mainstream adoption of digital dollars, making the US a global hub for stablecoin innovation.
