President Donald Trump has enacted the GENIUS Act (Guiding and Establishing National Innovation for US Stablecoins Act) via a live signing ceremony on Friday. This piece of legislation, which standardizes regulations for stablecoins, gained approval in a bipartisan vote, ending with a tally of 308 to 122.
During the ceremony, Trump expressed his ambition to position the U.S. as the “crypto capital of the world.” In support, White House AI and Crypto Czar David Sacks stated that the law lays the groundwork for American leadership in the crypto sector by establishing “clear rules of the road” and modernizing “outdated” payment frameworks.
Stablecoins differ from other cryptocurrencies like Bitcoin in that their value is directly tied to a fiat currency, specifically the U.S. dollar, in this scenario. Under the GENIUS Act, it is mandated that “permitted payment stablecoin issuers” maintain reserves equating to every dollar’s worth of stablecoins issued. These reserves may comprise “any government-issued asset approved by regulators,” such as bank deposits and short-term treasury bills.
“Congratulations to our GREAT REPUBLICANS for being able to accomplish so much, a record, in so short a period of time,” Trump wrote on Truth Social Friday.
Watch the ceremony, here:
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President Donald Trump signed the GENIUS Act (Guiding and Establishing National Innovation for US Stablecoins Act) into law on Friday in a live ceremony. The legislation sets regulations for stablecoins and was passed in a bipartisan vote of 308 to 122.
At the signing ceremony, Trump said he wants to make the U.S. the “crypto capital of the world.” White House AI and Crypto Czar David Sacks said the law helps pave the way for American dominance in the crypto industry by “creating clear rules of the road” and updating “archaic” payment systems.
A stablecoin’s value is pegged to a fiat currency, in this case, the U.S. dollar. Cryptocurrencies like Bitcoin are not. The GENIUS Act makes it law that “permitted payment stablecoin issuers” must hold reserves for every dollar of stablecoins offered. A reserve can be “any government-issued asset approved by regulators,” such as bank deposits and short-term treasury bills.
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