The U.S. has passed its first comprehensive cryptocurrency legislation, the Genius Act, establishing federal oversight for stablecoins digital tokens pegged to assets like the U.S. dollar.
President Donald Trump is set to sign the bill into law Friday after bipartisan congressional approval, marking a pivotal moment for an industry long seeking regulatory clarity.
Provisions and Reactions
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Stablecoin Rules: Issuers must maintain 1:1 reserves in dollars or low-risk assets, aiming to stabilize the $150B+ market and integrate crypto into mainstream finance.
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Political Divide: The bill passed despite objections from consumer advocates warning of risks if issuers collapse. Some critics linked it to Trump’s family crypto ventures, though it drew support from half of Democrats and most Republicans.
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Industry Influence: The law follows years of aggressive lobbying and campaign donations by crypto firms, including backing for Trump in 2024.
What’s Next
Two related bills blocking a central bank digital currency (CBDC) and regulating broader crypto markets await Senate review. Analysts caution further progress may stall amid political headwinds, even as Bitcoin hits $120,000.
