US President Trump officially signedIt's called the GENIUS Act.The new financial regulatory bill establishes a clear regulatory framework for the stablecoin market, thereby consolidating the dollar's global dominance in the digital financial market. It is also regarded as a key turning point in the United States' historical cryptocurrency regulatory policy.
At the signing ceremony, Trump declared the GENIUS Act "perhaps the greatest revolution in financial technology since the advent of the internet," highlighting its profound impact on future financial infrastructure. The bill not only received bipartisan support in Congress, but also attracted senior executives from major US cryptocurrency companies such as Coinbase and Tether to witness the signing.
✅ GENIUS ACT SIGNED INTO LAW
"The GENIUS Act creates a clear and simple regulatory framework to establish & unleash the immense promise of dollar-backed stablecoins. This could be perhaps the GREATEST revolution in financial technology since the birth of the internet itself." pic.twitter.com/CH5pnznAuf
- The White House (@WhiteHouse) July 18, 2025
According to the bill, all future stablecoin issuers will be required to meet a series of compliance standards, including licensing requirements, reserve asset ratios, creditor protection measures in the event of bankruptcy, and enhanced anti-money laundering and financial transparency responsibilities. The bill specifically stipulates that stablecoins must be backed by "100% cash or short-term U.S. Treasury bonds" and pegged to the U.S. dollar at a 1:1 ratio.
Notably, the GENIUS Act explicitly distances itself from central bank digital currencies (CBDCs), rejecting the model of complete government control of digital currencies. Trump stated that this reform is market-driven, not state-led, and will help stimulate financial innovation while avoiding concerns about excessive government monitoring of individual transactions.
However, despite the bill's smooth passage and support from some industry players, its regulatory content has sparked controversy. Some Republican senators questioned whether the bill's overly friendly approach to large technology companies could lead to the misuse of financial data and privacy breaches. Democrats, on the other hand, pointed out that the bill still contains loopholes in consumer protection and regulatory oversight, posing potential risks to financial stability.
Furthermore, some Democratic lawmakers have raised concerns about the role of the USD1 stablecoin, a cryptocurrency company owned by World Liberty Financial, in which the Trump family is involved. They have questioned whether Trump is abusing his presidential power to profit from it, perhaps by using tax breaks or pardons in exchange for financial contributions. In response, the White House stated that Trump's personal assets have been transferred to his children through a trust, posing no direct conflict of interest with the presidency.
With the implementation of the GENIUS Act, the US stablecoin industry will face clearer regulatory guidance. This may also lead more countries to adopt similar policies, further institutionalizing the global digital currency ecosystem. The Trump administration is also attempting to reassert its dominance in global standard setting and the US dollar's hegemony in the next wave of fintech competition.
