President Donald Trump signed the GENIUS Act into law on Friday, establishing the first federal framework for dollar-backed stablecoins. The move is being hailed as one of the most significant victories yet for the cryptocurrency industry in Washington.
“I pledged that we would bring back American liberty and leadership and make the United States the crypto capital of the world, and that’s what we’ve done,” Trump declared during the White House signing ceremony.
The signing capped off what supporters have dubbed “Crypto Week,” during which two additional pro-crypto bills—the CBDC Anti-Surveillance State Act and the Clarity Act—also passed through the House. The former prohibits the development of central bank digital currencies, while the latter defines regulatory authority over most digital assets, excluding stablecoins, splitting oversight between the SEC and CFTC. Both bills now head to the Senate, where their futures remain uncertain.
Passage of the legislation followed weeks of internal GOP negotiations, as Republican leaders worked to overcome resistance within their ranks.
Trump’s ties to the industry have also grown more direct. He and his sons are backing a new crypto venture, World Liberty Financial, which recently launched its own dollar-pegged stablecoin, USD1, in collaboration with BitGo.
Anticipation around these legislative moves has sent shares of crypto-linked companies surging, including Coinbase (COIN), Robinhood (HOOD), and newly public stablecoin issuer Circle (CRCL).
The GENIUS Act outlines how U.S. companies can issue and operate stablecoins for payments, providing official recognition that could encourage broader adoption. The bill also includes a controversial clause: it bans members of Congress and their families from profiting off stablecoins, but does not extend that restriction to Trump and his family—a carveout that drew Democratic criticism and delayed the bill’s progress earlier this year.
“Banks and nonbanks have parity here, so I think the banks will be able to compete in this new payments regime,” said Patrick McHenry, former Republican congressman and Financial Services Committee chair, who helped shape an earlier version of the bill.
Big banks are already preparing to enter the space. JPMorgan Chase (JPM) and Citigroup (C) CEOs Jamie Dimon and Jane Fraser both confirmed plans this week to move into stablecoins. Dimon, once a crypto skeptic, now says the company must adapt to stay competitive. JPMorgan recently unveiled a deposit token called JPMD, a stablecoin-like asset for institutional clients.
“We’re going to be involved in both JPMorgan deposit coin and stablecoins to understand it, to be good at it,” Dimon said.
Citizens Financial Group (CFG) CEO Bruce Van Saun echoed a similar sentiment: “I think it’s real. I think it’s here to stay. I think it’s a little overhyped at this point, but we’ll figure out the best way that we can get involved.”
Amazon (AMZN) and Walmart (WMT) are also reportedly exploring stablecoin ventures, adding to the growing wave of traditional players entering the market. If merchants begin using stablecoins to bypass card networks like Visa (V) and Mastercard (MA), the payments industry could see major disruption.
The new law gives regulatory authority to the Federal Reserve and Office of the Comptroller of the Currency (OCC) over stablecoin issuers with $10 billion or more in assets, while smaller issuers will be overseen by state regulators.
“The OCC is prepared to work swiftly to implement this landmark legislation that expands the authority of the OCC to include nonbank payment stablecoin issuers,” said Comptroller of the Currency Jonathan Gould in a statement.
All issuers will be required to maintain reserves in cash or U.S. Treasurys, undergo regular audits, and publicly disclose their holdings and redemption processes. Like money market funds, the stablecoins must be redeemable at face value—but unlike them, they are barred from paying interest.
Proponents say stablecoins offer safe, dollar-pegged storage for crypto traders and enable faster, programmable transactions across borders. Still, skeptics warn of potential risks, including the threat of investor runs during times of market stress.
A senior Treasury official said the $260 billion stablecoin market could significantly impact global demand for U.S. debt and help reinforce the dollar’s dominance over time.
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