WASHINGTON, D.C. President Donald Trump on Friday signed into law new regulations for stablecoins, marking a significant milestone for the cryptocurrency industry as it gains political traction and mainstream legitimacy.
The new law, titled the GENIUS Act or “Guiding and Establishing National Innovation for U.S. Stablecoins,” establishes the first federal standards and consumer protections for stablecoins, a type of cryptocurrency typically pegged to assets like the U.S. dollar to minimize price volatility. The legislation passed both the House and Senate with broad bipartisan support.
The law aims to strengthen public trust in digital assets and signals a shift in Washington’s approach to crypto. The industry, which has grown into a powerful lobbying force, played a significant role in Trump’s 2024 election victory through major campaign donations and influence.
“For years you were mocked and dismissed and counted out,” Trump told crypto executives during a White House signing ceremony attended by around 200 people, including top Republican lawmakers. “This signing is a massive validation of your hard work and your pioneering spirit.”
Trump, once a skeptic of cryptocurrency, has become one of its most vocal political champions. He praised industry leaders for earning “respect in such a short period of time” and described crypto as beneficial for the dollar and the U.S. economy. “That’s why I backed you at an early stage,” he said.
In a candid moment, Trump acknowledged the political motivations behind his support: “And I also did it for the votes,” he said, drawing laughter from the crowd.
The president also joked that the GENIUS Act was named after him. Under the new law, members of Congress and their families are prohibited from profiting off stablecoins. However, the restriction does not apply to the president and his family.
The Trump family reportedly holds a major stake in World Liberty Financial, a crypto venture that launched its own stablecoin earlier this year. The project received early investment from a fund based in the United Arab Emirates.
Meanwhile, the House passed two additional crypto-related bills on Thursday. One would create a new regulatory framework for digital assets, while the other seeks to block the Federal Reserve from launching its own central bank digital currency. Both bills now await Senate consideration.
The stablecoin market continues to grow rapidly. Circle, the U.S. issuer of the popular USDC stablecoin, recently debuted on the New York Stock Exchange and saw a surge in value amid heightened investor interest. Stablecoin issuers typically earn revenue by collecting interest from the reserves backing their digital tokens.
Edgardo Hernal started college at UP Diliman and received his BA in Economics from San Sebastian College, Manila, and Masters in Information Systems Management from Keller Graduate School of Management of DeVry University in Oak Brook, IL. He has 25 years of copy editing and management experience at Thomson West, a subsidiary of Thomson Reuters.
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