President Trump enacts GENIUS Act, positioning the U.S. as a leader in digital currency regulations, impacting stablecoins significantly.
What to Know:
Trump signed GENIUS Act into law, impacting U.S. crypto regulations.
Signifies U.S. ambition to lead in digital currencies.
Shifts stablecoin regulatory landscape over three years.
President Donald Trump signed the GENIUS Act on July 18, 2025, in Washington, marking a landmark step in U.S. cryptocurrency regulation.
The GENIUS Act focuses on stablecoins, compelling issuers to comply with stringent reserve requirements, reshaping the U.S. crypto landscape.
GENIUS Act Introduced at Washington Signing Ceremony
On July 18, 2025, President Donald Trump enacted the GENIUS Act, marking the United States’ first substantial cryptocurrency regulation. The act was signed in Washington with major industry leaders present. Key figures like executives from Robinhood, Tether, and Gemini were in attendance. The act mandates strict reserve holding by stablecoin issuers, aiming to increase U.S. Treasury demand. As President Trump stated, “We worked hard. It’s a very important act, the GENIUS Act. They named it after me. I want to thank you. This is a hell of an act.”
Market Shifts as Stablecoin Issuers Face New Compliance
The GENIUS Act’s signing has stirred significant market shifts, particularly affecting payment stablecoins like USDT and USDC. Issuers now face a three-year compliance period to become approved or face U.S. market entry restrictions. This regulatory milestone intends to solidify the U.S. position in digital finance. For those interested in the detailed legislative text, the Text of BILLS-119s1582es provides comprehensive insights.
GENIUS Act Mirrors EU MiCA, Aiming for Market Stability
The GENIUS Act resembles the EU’s MiCA regulations, creating structured requirements for stablecoin issuers. Similar historic frameworks have caused liquidity migrations and issuer consolidation. Experts anticipate the GENIUS Act could lead to stabilized market conditions, driving compliance and integration among stablecoin developers, impacting liquidity dynamics aligned with historical trends. The CRS Product IN12583 gives a deeper analysis of the act’s potential impacts on market stability.
Disclaimer: The information on this website is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency markets are volatile, and investing involves risk. Always do your own research and consult a financial advisor.
