Donald Trump Signs Landmark GENIUS Act Regulating Stablecoins

President Donald Trump has enacted the GENIUS Act, a legislation that sets forth guidelines for stablecoins, marking a significant regulatory milestone for the cryptocurrency sector in the United States.

On July 17, the House of Representatives approved the bill, alongside two other pieces of legislation concerning digital assets: the CLARITY Act and the Anti-CBDC Act.

The GENIUS Act mandates that «stablecoins» be fully backed by liquid assets and requires annual audits for issuers with a market capitalization exceeding $50 billion. The law prohibits interest payments or any form of returns to stablecoin holders, while also establishing guidelines for foreign firms operating in this market.

«GENIUS Act creates a clear and straightforward regulatory framework for the development and realization of the vast potential of dollar-backed stablecoins,» Trump remarked during the signing ceremony.

Attending the event were notable industry figures, including Gemini co-founders Cameron and Tyler Winklevoss, Circle CEO Jeremy Allaire, Tether’s Paolo Ardoino, and Robinhood’s Vlad Tenev.

«You, the entire crypto community, have faced ridicule and skepticism for years… but this signing is a significant recognition of your hard work and pioneering spirit,» the President addressed the attendees.

The GENIUS Act will come into effect six months or 120 days after regulators issue the necessary implementation rules.

According to CoinGecko, Tether’s USDT continues to dominate the stablecoin market, with a market cap nearing $161 billion. Circle’s USDC has reached nearly $65 billion.

Among the largest stablecoins is USD1, launched by the DeFi platform World Liberty Financial, which is linked to the Trump family. Critics of the President have frequently pointed to potential conflicts of interest due to his ties with various crypto projects, including the TRUMP meme coin.

It’s worth noting that on July 15, the House initially rejected a vote on all three digital asset-related bills.