US President Donald Trump has signed the “Guidance and Establishment of National Innovation for US Stablecoins” (GENIUS) Act, which has become the first federal regulation for the legalization and oversight of stablecoin issuance in the country. The signing ceremony was attended by leaders of major cryptocurrency companies who welcome the new standards for the industry.
This is reported by Business • Media
Key Requirements and Features of the New Law
According to the GENIUS Act, stablecoin issuers must ensure full backing of their assets with liquid means, including the US dollar. For companies with a market capitalization exceeding $50 billion, mandatory annual audits have been introduced. The document also includes restrictions for foreign issuers, prohibiting the activities of companies from jurisdictions that are under sanctions.
The bill passed both chambers of Congress despite opposition from some Republicans and concerns from Democrats. Congresswoman Maxine Waters noted that a conflict of interest could arise due to the connection with Trump’s family business—World Liberty Financial, which also works with stablecoins.
Industry Reaction and Market Impact
CEOs of leading companies were present at the signing ceremony, including Circle CEO Jeremy Allaire, who called GENIUS “one of the transformative laws of the decade.” Anchorage Digital’s head Nathan McCauley emphasized that this is the result of years of collaboration between the government and business.
“Today we are taking a giant step toward cementing America’s dominance in global finance and cryptocurrency by signing the landmark GENIUS Act,” Trump stated.
Also present at the ceremony were leaders from Coinbase, including CEO Brian Armstrong, Chief Legal Officer Paul Grewal, and Political Director Faryar Shirzad. The company considers the passage of GENIUS a historic moment for the global cryptocurrency sector.
Most industry representatives noted that the new law will serve as a benchmark not only for the US but also for the international stablecoin market. Analysts believe that the GENIUS Act may impact Tether’s position in the US.