President Donald Trump made history on July 18 by signing the GENIUS Act into law, marking a significant milestone in the United States’ journey towards securing global dominance in crypto technology. The legislation introduces the country’s first federal framework for dollar-backed stablecoins, a move that has been celebrated by Trump as a game-changer for the nation’s position in the crypto market.
In a statement following the signing of the bill, Trump expressed his confidence in the potential of crypto technology, stating that it has outperformed traditional stocks and has the ability to enhance the value of the US dollar. He emphasized the positive impact of crypto on the nation’s economy and reiterated his commitment to further advancing the country’s stance in the crypto sector by approving additional legislation before the year’s end.
Senate Banking Committee ranking member, Tim Scott, praised the GENIUS Act for providing much-needed regulatory clarity for the stablecoin industry. He highlighted the benefits of faster and more cost-effective payments, which he believes will strengthen the dominance of the US dollar on a global scale. Treasury Secretary Scott Bessent echoed these sentiments in a post, thanking House Republicans for their efforts in solidifying America’s position as the “crypto capital of the world.”
The GENIUS Act establishes a federal framework for the issuance and oversight of payment stablecoins. It designates the Federal Reserve to license and supervise national-level insured depository institutions, while allowing eligible state-chartered firms to mint dollar-pegged tokens if they meet specific criteria related to reserves, disclosures, redemptions, and risk controls. Issuers are required to back every token with high-quality liquid assets and provide regular attestation reports to ensure transparency and accountability.
Furthermore, the law mandates that bank regulators set examination schedules, guarantees consumers the right to redeem tokens at face value within specified time frames, and ensures that reserve assets remain segregated unless explicit consent is given for rehypothecation. The GENIUS Act passed the House by a significant margin of 307-122 and was later approved by the Senate, completing the necessary legislative process for enactment into law.
In conclusion, the signing of the GENIUS Act represents a significant step forward for the US in solidifying its position as a leader in the crypto technology sector. With a clear regulatory framework in place for stablecoins, the country is poised to capitalize on the benefits of crypto innovation and strengthen its global influence in the digital currency market.