The US House of Representatives has passed three cryptocurrency-related bills, including the GENIUS Act, marking a significant advancement in regulating the sector.
The GENIUS Act was signed into law by President Donald Trump on 18 July 2025, with the legislation supporting the development of the US’s position in the global digital currency evolution. The bill prioritises consumer protection, solidifies the USD’s reserve currency status, and scales national security. Additionally, the GENIUS ACT is expected to bring substantial investment and innovation into the country.
The GENIUS Act
According to the official press release provided by the White House, President Donald Trump supports the bill as it safeguards consumers from bad actors operating in financial markets. The legislation, which was approved by the US Senate on 18 June 2025, creates a Federal regulatory system for stablecoins, ensuring their stability and trust through robust reserve requirements. The Act demands that all reserve backing be with liquid assets like USD or short-term Treasuries and requires issuers to make monthly, public disclosures of the composition of reserves. Additionally, all stablecoin issues must fall in line with marketing rules to protect consumers across the US from deceptive practices. Most importantly, providers are forbidden from making misleading claims that their stablecoins are backed by the US Government, federally insured, or legal tender.
Furthermore, the GENIUS Act aligns with State and Federal stablecoin frameworks, aiming to ensure fair and consistent regulation throughout the US. If a stablecoin issuer faces insolvency, the legislation prioritises stablecoin holders’ claims over all other creditors, focusing on the security and protection of consumers.
At the same time, with the GENIUS Act, the US seeks to generate more demand for US debt and solidify the USD’s status as a global reserve currency by requiring stablecoin issuers to back their assets with Treasuries and USD. The legislation will also have a role in bringing more digital asset activity to the country by offering clear rules and facilitating responsible innovation in the stablecoin market.
The bill seeks to improve national security through the regulation and registration of stablecoin issuers, together with coordination with the Treasury Department on sanctions enforcement.
Industry response
As detailed by the BBC, supporters of the legislation mention that it is focused on offering clear rules for an expanding industry, ensuring that the US stays aligned with innovation in payment systems. The crypto sector has long been pushing for these measures with the aim of more people utilising digital currency and bringing it into the mainstream.
However, critics disagree with these statements, saying that the bill will introduce additional risks into the financial system by legitimising stablecoins without providing adequate protections for consumers. They also argued that the passage would enable the proliferation of assets that consumers will perceive as safe.
