On July 17, 2025, the U.S. House of Representatives passed the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS Act) with a decisive 308-122 vote, marking a historic milestone for the cryptocurrency industry in the United States.
This bill, already approved by the Senate in June, now awaits President Donald Trump’s signature to become law, establishing the first federal framework for regulating stablecoins, cryptocurrencies pegged to assets like the U.S. dollar to maintain price stability.
The passage of the GENIUS Act signals a significant step toward integrating digital assets into mainstream finance, aligning with Trump’s vision to make the U.S. the “crypto capital of the planet.”
The GENIUS Act addresses the $238 billion stablecoin market, dominated by tokens like Circle’s USDC and Tether’s USDT. It mandates that issuers back their tokens with liquid assets, such as U.S. dollars or short-term Treasury bills, and disclose reserve compositions monthly to ensure transparency.
This framework aims to protect consumers by reducing risks associated with rapid sell-offs and ensuring priority repayment in bankruptcy scenarios. The bill also introduces anti-money laundering rules and compliance with anti-terrorism sanctions, addressing concerns about illicit use of stablecoins by ransomware hackers or sanctioned regimes.
Industry experts, including Blockchain Association CEO Summer Mersinger, hailed the vote as a “defining moment” for fostering trust and encouraging competition in the stablecoin market.
The passage follows intense lobbying from the crypto industry, which invested over $100 million in the 2024 election cycle to support pro-crypto candidates. However, the bill faced opposition from some Democrats, including Rep. Maxine Waters, who criticized it as a “gift-wrapped invitation” for Trump’s personal crypto ventures, such as his World Liberty Financial stablecoin, USD1.
Despite these concerns, bipartisan support from 18 Senate Democrats and House lawmakers underscores the bill’s broad appeal. The GENIUS Act is expected to enable traditional financial institutions, like JPMorganChase, and retailers, such as Amazon and Walmart, to issue their own stablecoins, potentially reducing transaction fees and disrupting legacy payment systems like Visa and Mastercard.
The bill’s implications extend beyond the U.S., as stablecoins facilitate cross-border payments and provide liquidity in emerging markets like Latin America and Sub-Saharan Africa.
By legitimizing stablecoins, the GENIUS Act could drive mainstream adoption, making them a viable alternative to traditional fiat currencies for payments and futures trading.
However, critics, including Sen. Elizabeth Warren, argue that the bill’s consumer protections are insufficient and fail to address conflicts of interest tied to Trump’s financial stakes in crypto. The House Financial Services Committee, chaired by French Hill, played a key role in advancing the legislation during “Crypto Week,” a period dedicated to crypto-friendly bills.
As the GENIUS Act heads to Trump’s desk, the crypto industry anticipates increased institutional investment and innovation. Analysts predict that clear regulations will unlock capital previously sidelined by uncertainty, boosting the market for tokenized assets, including music royalties and real estate.
The bill’s success also sets the stage for further legislation, such as the Clarity Act, which could redefine SEC and CFTC roles in crypto regulation. For updates on how this impacts the U.S. crypto landscape, visit our Market Insights section.
