The U.S. has taken a significant step by passing its first major national cryptocurrency law, marking a milestone for an industry that has long sought clear regulatory frameworks. The bill, known as the GENIUS Act, focuses on regulating stablecoins—cryptocurrencies backed by reliable assets such as the U.S. dollar.
President Donald Trump, who has shifted from skepticism to strong support for crypto, is expected to sign the bill into law shortly after the House approved it, following Senate approval last month. This legislation is one of three crypto-related bills moving through Congress with backing from the president.
What the GENIUS Act Does
The bill requires stablecoins to be backed one-for-one by U.S. dollars or other low-risk assets, aiming to bring stability to these digital currencies which are commonly used by traders to switch between different cryptocurrencies. Supporters believe the law will provide needed clarity for a growing sector and help the U.S. maintain leadership in payment innovation.
Critics warn the legislation could introduce new risks by legitimizing stablecoins without adequate consumer protections. There are fears that it may allow tech firms to engage in bank-like activities without proper oversight, potentially leaving customers vulnerable in bankruptcy situations. Some opponents also argued that supporting the bill implicitly condones Trump’s personal business interests in crypto, including his family’s promotion of related tokens.
Despite opposition, the bill saw significant bipartisan support, with about half of Democrats and a majority of Republicans voting in favor.
Other Crypto Bills and Future Outlook
The other two crypto bills—one preventing the Federal Reserve from creating a digital dollar and another outlining regulatory frameworks for other cryptocurrencies—have passed the House and now await action in the Senate, where Republicans hold a slim majority. However, experts suggest these bills face a tougher road ahead.
Amid this legislative activity, President Trump is reportedly preparing an executive order to allow retirement accounts to invest in private assets such as cryptocurrencies, gold, and private equity.
Bitcoin recently hit a new record price of over $120,000, underscoring growing investor interest.
Terry Haines of Pangaea Policy cautions that this legislative win for stablecoins might be the last for some time, given the scandals and delays. He notes, “When the easy part, stablecoin, takes four to five years and barely survives industry scandals, it’s not much to crow about.”
Author’s Opinion
While the GENIUS Act represents progress in providing clarity for stablecoins, it is only the beginning of a long and complex regulatory journey. Without stronger consumer protections and oversight, the industry risks repeating past mistakes. Lawmakers must remain vigilant and avoid complacency as the crypto landscape continues to evolve.
Featured image credit: Wikimedia Commons
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