Lawmakers anticipate the US Genius Act for stablecoins to secure approval within a ten-day period
The GENIUS Act: Establishing a Federal Framework for Stablecoins in the United States
The GENIUS Act, a comprehensive regulatory framework for stablecoins in the US, has been enacted into law as of July 18, 2025. The bill passed both the Senate and House with bipartisan support and was signed by President Donald Trump.
The Senate passed the GENIUS Act on June 17, 2025, with a vote of 68–30. The House followed suit on July 17, 2025, with a bipartisan vote of 308–122. President Trump signed the act into law on July 18, marking a significant legislative achievement for his administration’s digital asset regulatory agenda.
The Act prohibits the issuance of payment stablecoins in the US unless issuers are permitted entities under federal or state regimes that comply with strict reserve, redemption, compliance, and disclosure requirements. The prohibition's effective date is estimated around November 2026, with various regulatory rulemakings expected before then.
Under the GENIUS Act, stablecoin issuers must be insured depository institutions such as banks or approved nonbank financial institutions, requiring 1:1 reserves backing with U.S. dollars or low-risk assets like Treasuries, monthly audits, and compliance with anti-money laundering (AML) and anti-terrorism financing rules under the Bank Secrecy Act. The act also imposes consumer protection rules, including prohibitions on misrepresenting stablecoins as legal tender or federally insured, and privacy safeguards prohibiting using transaction data for marketing without consent.
In addition to the GENIUS Act, the CLARITY Act — aimed at clarifying the regulatory authority between the SEC and the CFTC over digital assets — has passed the House and is expected to be considered by the Senate in Fall 2025.
President Trump's impact on the progress of stablecoin legislation has been significant and positive in terms of legislative momentum. His administration championed a comprehensive regulatory framework, with the GENIUS Act being a centerpiece achievement signed into law by him shortly after Congressional passage. Trump's direct signature on the bill expedited the enactment process, making the US one of the first countries to establish federal stablecoin regulations.
As the GENIUS Act is now law, creating a federal framework with clear requirements and an implementation timeline extending into late 2026, additional digital asset regulations such as the CLARITY Act are advancing through Congress. President Trump’s involvement has been pivotal in moving these legislative efforts forward rapidly and with bipartisan support.
- With President Trump's administration advocating for a comprehensive regulatory framework, the enactment of the GENIUS Act into law on July 18, 2025, marked a significant milestone in the United States' digital asset industry.
- The GENIUS Act, a bipartisan bill that prohibits the issuance of payment stablecoins unless issuers are insured depository institutions, has set strict reserve, redemption, compliance, and disclosure requirements in the legal framework for this sector.
- As the politics surrounding stablecoins evolved, insights gleaned from general-news sources indicated that the US was on track to become one of the first countries to establish federal stablecoin regulations, thanks in part to President Trump's decisive action.
- The passage of the GENIUS Act and the expected consideration of the CLARITY Act in the Senate signify a shift in the legal landscape for the stablecoin industry, potentially attracting more retail capital investment in this growing segment.
