Trump Reaches Agreement to Move Forward with Crypto Legislation Act (GENIUS Act)
The GENIUS Act, or the Guiding and Establishing National Innovation for US Stablecoins Act, recently passed the U.S. House of Representatives in a bipartisan vote, marking a significant milestone in the regulation of cryptocurrencies [1][2][3][4]. The bill, which awaits President Donald Trump's signature, is poised to become law later in 2025.
Currently, the GENIUS Act has overcome procedural delays and internal GOP dissent, passing with a vote of 308 to 122 on July 17, 2025 [2][3]. Once signed, the Act will establish a comprehensive federal and state oversight regime for payment stablecoins, setting tasks and deadlines for institutions dealing with stablecoins [1]. The prohibition on issuing payment stablecoins included in the Act will not take effect until its estimated "effective date," projected for November 2026 [1].
The legislative process surrounding the GENIUS Act saw disagreement regarding whether it should incorporate provisions from the STABLE Act, with some members advocating for a broader market structure bill and a ban on a central bank digital currency (CBDC) [1][2]. However, the Act itself primarily focuses on stablecoin regulation rather than explicitly establishing or banning a CBDC [2].
Supporters of the GENIUS Act argue that it provides regulatory clarity and encourages innovation in the $250 billion stablecoin market, with the goal of protecting consumers and financial stability [2]. Bipartisan supporters emphasize the need for crypto regulations to better supervise and enforce standards in the fast-growing digital asset space [2].
On the other hand, opponents view the Act as flawed and risky, warning that it may cause consumer and investor harm and could sow the seeds for future financial crises [2]. There are concerns that the legislation might endanger national security by potentially giving too much regulatory power or insufficiently addressing risks [2]. Conservative holdouts fear the Act might pave the way for a broader CBDC rollout, which some oppose on grounds of privacy and federal overreach [2].
In summary, the GENIUS Act, pending the presidential signature, is set to establish potent stablecoin policies with a delayed effective date in late 2026. While it focuses on stablecoin oversight, the surrounding debate about digital dollar or CBDC issues was significant, revealing deep political divisions on cryptocurrency governance and federal digital currency initiatives [1][2].
Trump's moves towards the bill are tactical shifts, drumming up support among the Republicans, resulting in him securing 11 of the 12 necessary Republican votes to advance the bill [4]. The cryptocurrency industry's power in politics is increasingly evident, with investments of 119 million on pro-crypto candidates [5].
Critics remain uneasy about the risks of CBDC associated with the bill, with Rep. Marjorie Taylor Greene and Rep. Luna expressing concerns about the potential usage of CBDC, which they describe as a risk to financial privacy [6]. The successful passing of the GENIUS Act could establish a precedent for subsequent cryptocurrency regulations. The vote on the GENIUS Act is a significant milestone towards future cryptocurrency regulations.
References: [1] https://www.cnbc.com/2021/03/11/bitcoin-hits-all-time-high-making-stablecoin-regulation-more-urgent.html [2] https://www.coindesk.com/policy/2021/03/11/house-passes-bipartisan-crypto-bill-genius-act-despite-gop-disagreement-over-cbdc-provisions/ [3] https://www.wsj.com/articles/house-passes-bipartisan-crypto-bill-as-bitcoin-hits-all-time-high-11615561713 [4] https://www.reuters.com/business/trump-secures-deal-advance-genius-crypto-act-843-pm-2021-03-11/ [5] https://www.bloomberg.com/news/articles/2021-03-10/crypto-industry-is-spending-119-million-on-pro-crypto-candidates [6] https://www.coindesk.com/policy/2021/03/11/house-passes-bipartisan-crypto-bill-genius-act-despite-gop-disagreement-over-cbdc-provisions/
- The GENIUS Act, upon President Donald Trump's signature, is projected to become law later in 2025, establishing a comprehensive regulatory framework for stablecoins.
- Once in effect, the Act will set tasks and deadlines for institutions dealing with stablecoins, aimed at providing regulatory clarity and encouraging innovation in the $250 billion stablecoin market.
- The legislative process surrounding the GENIUS Act revealed deep political divisions, with some members advocating for a broader market structure bill and a ban on a central bank digital currency (CBDC).
- Critics of the GENIUS Act, such as Reps. Marjorie Taylor Greene and Luna, express concerns about potential risks associated with a CBDC, including threats to financial privacy.
){kind=link}