Yesterday, President Donald Trump signed the GENIUS Act into law during a ceremony at the White House. This marks a major step for his administration in its goals to set clear regulations for cryptocurrencies, especially stablecoins
The event took place in the East Room of the White House and was attended by Vice President JD Vance, House Speaker Mike Johnson, and top crypto executives, including Coinbase CEO Brian Armstrong, Circle CEO Jeremy Allaire, Tether CEO Paolo Ardoino, and Gemini co-founders Cameron and Tyler Winklevoss.
The GENUIS Act, which is short for “Guiding and Establishing National Innovation for US Stablecoins,” sets up the first official rulebook for stablecoin payment in the United States. The law passed the Senate last month and cleared the House on Thursday.
It aims to create a system where stablecoin companies will be regulated by either federal banking officials or state-level authorities, depending on their size and structure. Only approved issuers, which are called Permitted Payment Stablecoin Issuers (PPSIs), can legally issue stablecoins in the country.
Trump joked at the start of the event, “It’s a very important act, the GENIUS Act. They named it after me.” He added, “This is a hell of an act.” He later said the law would help “cement American dominance in global finance and crypto technology.”
Under the law, companies issuing stablecoins must keep full reserves, follow strict transparency rules, and complete regular audits. If a company fails or goes bankrupt, customers will be the first to get their money back. The law also requires companies to follow anti-money laundering and anti-terrorism rules. These changes will be rolled out over the next 18 months, with full enforcement expected by November 2026.
SEC Commissioner Hester Peirce explained that the law makes it clear that “payment stablecoins are not securities” if they are backed by real U.S. dollars or short-term safe investments. “People have voted with their dollars—privately issued stablecoins already enjoy broad use as a payments mechanism.” She said.
During the event, the president also mentioned support for the crypto industry, including his decision to pardon Silk Road founder Ross Ulbricht and create a national Bitcoin reserve. “The entire crypto community, for years, you were mocked and dismissed… but this signing is a massive validation,” he said.
The GENIUS Act is one of three bills being pushed by Republicans. The other two, the CLARITY Act and the Anti-CBDC Act, are still waiting to be approved by the Senate.
Also Read: Tether CEO Plans U.S. Stablecoin Push, Circle CEO Fires Back
