On July 18, 2025, U.S. President Donald Trump signed the GENIUS Act, creating a federal framework for stablecoins in the country. This event attracted attention from both government officials and representatives of the cryptocurrency industry.
Significance of the GENIUS Act
The GENIUS Act is the first comprehensive federal law focused on stablecoins in the United States. Its main goal is to enhance regulatory oversight for stablecoins linked to the U.S. dollar, which is expected to facilitate the integration of the dollar into blockchain technology. The law aims to bolster consumer protection and strengthen market oversight.
Reactions to the Legislation
Reactions to the signed legislation vary. Representatives from major fintech companies expressed approval; however, some members of the Freedom Caucus raised concerns regarding aspects of central bank digital currency. The market shows interest in how this law might affect the dollar's position in blockchain ecosystems.
Historical Context and Market Implications
The GENIUS Act marks a significant shift toward federal regulation in financial digitization in the U.S. This law complements similar actions being taken in the European Union. As reported by CoinMarketCap, USDC currently trades at $1.00 with a market cap of over 64 billion dollars. Studies suggest that the new law could enhance market efficiency and compliance, pushing stablecoins toward mainstream finance.
The enactment of the GENIUS Act represents a crucial step in the regulation of cryptocurrency in the U.S., potentially strengthening the dollar's position in the global economy and increasing trust in stablecoins as a financing tool.
