Trump Signs GENIUS Act, Establishing Stablecoin Regulations

President Donald Trump has enacted the GENIUS Act, marking the first significant federal legislation to regulate stablecoins—digital currencies pegged to assets such as the US dollar. The new law sets out requirements for stablecoin issuers, including rules on reserve management, bankruptcy procedures, and anti-money laundering measures.

The signing ceremony at the White House was attended by industry leaders, including the CEOs of Coinbase and Tether. Trump contrasted his administration's approach to that of the previous administration, stating, "I got you guys out of so much trouble." He described the law as "a massive validation" of the crypto community's efforts and said his support for the industry would strengthen the US dollar, adding that he also sought the votes of crypto supporters.

The GENIUS Act passed both chambers of Congress with bipartisan backing. Supporters argue it introduces necessary safeguards and maintains US competitiveness in digital finance. However, some lawmakers voiced concerns. Senator Josh Hawley (R-MO) criticized the bill as a "huge giveaway to Big Tech," warning it could lead to increased data collection by stablecoin issuers. Senator Elizabeth Warren (D-MA), the Senate Banking Committee's ranking member, argued the legislation "is riddled with loopholes and contains weak safeguards for consumers, national security, and financial stability."

Warren and other Democrats also raised potential conflict-of-interest issues, noting Trump's family involvement in a crypto firm that recently launched its own stablecoin. The White House has stated that the president's assets are held in a trust managed by his children, denying any conflict. In a Senate speech, Warren alleged the law could facilitate corruption, describing it as "the single greatest corruption scandal in American history."

During the signing, Trump sought to shift focus to criticisms of his predecessor, emphasizing the significance of the bill's passage.