Trump Signs Historic GENIUS Act, U.S. Enacts First Federal Crypto Law

Coinbase Co-founder and CEO Brian Armstrong praised the legislative milestone, emphasizing its significance for U.S. crypto leadership: “A big shoutout to President Trump and this entire Administration for getting such strong, bipartisan support to get these bills through. This is exactly what’s going to allow this technology to be built here in America and ensure that the dollar remains very strong.”

The bill’s passage came during what Capitol insiders have dubbed “Crypto Week.” In addition to the GENIUS Act, the House advanced two complementary measures: the Digital Asset Market Clarity Act and the Anti‑CBDC Surveillance State Act. The former proposes a legal framework to clearly delineate regulatory authority between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), a long-standing ambiguity that has stifled innovation and triggered legal disputes. The latter seeks to ban the Federal Reserve from issuing a retail central bank digital currency, citing concerns over mass surveillance and loss of financial privacy. Both bills await Senate action, with possible votes expected in the coming months.

The legislation prompted renewed interest from traditional financial institutions and corporate players. JPMorgan, Citibank, and Bank of America are reportedly exploring stablecoin issuance, while large retailers like Walmart and Amazon have signaled potential pilot programs. Analysts believe the law may spur a new wave of institutional-grade stablecoins anchored in regulatory clarity.

The new law is expected to boost consumer confidence by introducing clear regulatory standards, including reserve backing and audit requirements. While stablecoin holdings are not FDIC-insured like traditional bank deposits, the GENIUS Act’s transparency and registration mandates aim to reduce risk and improve accountability. As the market adapts, regulators are expected to build on these protections, helping ensure users benefit from greater clarity, safer redemption practices, and fairer terms under a maturing legal framework.

While the GENIUS Act marks a significant achievement, some critics argue it grants excessive discretionary authority to federal regulators. They contend that the law lacks robust provisions on user protection and may allow issuers to skirt traditional banking obligations.

Supporters of the GENIUS Act say it’s not just a win for crypto—it’s a strategic move to keep the U.S. dollar strong in a fast-changing digital world. By laying down clear rules for dollar-backed stablecoins, the law gives American innovation a head start over global rivals like China and the EU, who are racing to shape the future of digital finance. Still, lawmakers know the road ahead isn’t without risks. They’ve promised to keep a close watch as regulators put the law into action, aiming to strike the right balance between innovation and responsibility.

The U.S. Treasury and the Federal Reserve are now tasked with issuing final regulations to implement the law, a process that could take up to one year. Issuers, in turn, will have up to three years to fully comply, depending on the nature of the final rules. Meanwhile, the Digital Asset Market Clarity Act and the Anti‑CBDC Surveillance State Act are awaiting Senate debate, and could further reshape the country’s digital asset landscape if enacted.

With the signing of the GENIUS Act, the United States has taken a decisive step toward integrating stablecoins into the traditional financial system. The law is widely seen as a turning point that establishes clear rules for one of the most important innovations in digital finance.