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On Friday, U.S. President Donald Trump signed new legislation that creates a formal regulatory framework for stablecoins—cryptocurrencies pegged to the U.S. dollar. The move marks a significant milestone for the digital asset industry, potentially opening the door for stable-coins to become a routine method of payment and money transfer.
The legislation, known as the GENIUS Act, was approved in the House of Representatives by a vote of 308 to 122, garnering support from nearly half of Democratic lawmakers and the majority of Republicans. It had previously cleared the Senate.
This development represents a major victory for the digital asset sector, which has pushed for clear regulations in an effort to gain legitimacy and shed its reputation as an unregulated frontier of innovation and risk-taking.
At the signing event, attended by numerous officials, lawmakers, and industry leaders, Trump praised the law as a major achievement. “This is a big win for the dollar and for the country,” he said, recognising the efforts of those involved in shaping the legislation.
Treasury Secretary Scott Bessent echoed that sentiment, saying the law would help strengthen the dollar’s role as the world’s reserve currency, expand global access to dollar-based transactions, and increase demand for U.S. Treasury securities that back stablecoins.
Stablecoins are intended to maintain a stable value—typically pegged 1:1 to the U.S. dollar—and are already widely used in digital asset markets to quickly move funds between tokens. Industry advocates hope this new legal clarity will encourage everyday use for instant payments and transfers.
Under the new rules, stable-coin issuers must back their tokens with highly liquid assets, such as U.S. dollars and short-term Treasuries, and publicly report the makeup of their reserves each month.
Supporters believe the law will boost confidence in stable-coins and accelerate adoption by banks, retailers, and consumers. The market for these digital assets is already valued at over $260 billion, and some estimates suggest it could reach $2 trillion by 2028 under the new regulatory environment.
The law’s passage follows years of lobbying by the crypto sector, which spent over $245 million in campaign donations during last year’s elections to support candidates favourable to digital asset innovation, including Trump.
At the signing, Trump thanked industry leaders for their backing during the 2024 election, reiterating his vision to restore American leadership and position the U.S. as a global hub for cryptocurrency. He has also launched his own digital token, $TRUMP, and holds a stake in a crypto firm called World Liberty Financial.
However, not everyone is on board with the legislation. Some critics argue it falls short in addressing key issues, such as limiting the influence of large tech firms that could issue their own stablecoins, tightening anti-money laundering standards, and restricting foreign-controlled stablecoin providers.
“There are still major gaps in this law that leave our financial system open to abuse,” warned Scott Greytak, deputy executive director of Transparency International U.S.
Meanwhile, large U.S. banks are beginning to explore involvement in the digital asset space, though their initial efforts are expected to remain cautious—limited to experimental programs, partnerships, or restricted crypto trading.
Several firms in the sector, including Circle and Ripple, are pursuing banking licenses, which would allow them to streamline operations and reduce costs by cutting out intermediaries.
Supporters of the new law believe it could also create significant new demand for short-term government debt, as stablecoin issuers will need to hold larger amounts of U.S. Treasuries to comply with reserve requirements.
Earlier this year, Trump also signed an executive order focused on building a strategic bitcoin reserve—part of a broader effort to overhaul U.S. digital asset policy.
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