- Main event impacts U.S. financial systems
- Stablecoins must be backed 1:1 by dollars
- Issuers require federal approval by 2026
President Trump signed the GENIUS Act on July 18, 2025, enacting the first federal stablecoin regulations in the United States.
The GENIUS Act offers regulatory clarity, potentially boosting U.S. financial market stability and global crypto leadership.
President Trump’s signing of the GENIUS Act marks a shift in U.S. stablecoin policy. The act stipulates 1:1 dollar backing for stablecoins, promising rigorous financial oversight.
Stablecoin issuers will need federal approval and the policy phases in by 2026. The act contrasts past U.S. regulatory stances and aligns with Trump’s emphasis on global financial leadership.
The GENIUS Act is set to affect major stablecoin issuers like USDT and USDC, as it mandates compliance with new federal rules.
Financial markets may anticipate shifts as issuers comply or exit, while consumers gain protections through regulatory clarity and enforced standards.
Industry reaction is cautiously optimistic, expecting increased potential for regulated stablecoin use and institutional investment.
Historically, regulatory clarity boosts investor confidence and may lead to higher market participation. The GENIUS Act follows international precedents, echoing impacts seen from EU and Japan’s stablecoin regulations.
“This afternoon, we take a giant step to cement American dominance of global finance and crypto technology as we sign the landmark GENIUS Act into law.”
— Donald Trump, President, United States
