Trump Signs GENIUS Act – The First U.S. Federal Crypto Law

Maniek Kozlowski
Jul 18
2 min read

On July 18, 2025, President Donald Trump signed the GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins Act), marking the first-ever federal legislation regulating stablecoins – cryptocurrencies pegged to the U.S. dollar.

✅ Key Benefits and Opportunities for the Crypto Industry

Clear rules of the game – Mandatory 1:1 reserves, monthly audits, and transparency requirements build trust among investors and consumers.
Consumer protection and AML – Enhanced anti–money laundering measures strengthen market security.
Mainstream adoption – Regulatory clarity paves the way for major corporations like Google, Uber, Apple, and Shopify to integrate stablecoins into their payment systems .
Boosting U.S. competitiveness – Trump emphasized the goal of maintaining the global dominance of the U.S. dollar and leadership in digital asset innovation .

📈 Which Cryptocurrencies Stand to Gain?

Stablecoins: USDC, USDT, and other USD-pegged tokens will likely benefit from regulatory certainty and growing trust.
Payment-oriented projects: Stablecoins used in e-commerce and everyday transactions are expected to see broader adoption.
Crypto infrastructure: Exchanges and wallets that facilitate stablecoin use are set to grow along with trading volumes.

📉 Which Could Lose Out?

Volatile cryptocurrencies: Bitcoin and Ethereum may face short-term pressure as capital shifts to more stable assets .
Algorithmic stablecoins: GENIUS Act favors fiat-backed tokens with actual reserves, potentially sidelining experimental or under-collateralized models .
Shadow banking models: Crypto entities mimicking traditional banks may face tighter scrutiny and oversight.

🚀 What’s Next?

U.S. regulators (SEC, Fed) have six months to develop detailed implementation rules.
Related bills – CLARITY Act and anti-CBDC legislation – are still awaiting Senate approval .
Stablecoins could transform from speculative assets into mainstream payment tools, with fintech giants playing a key role.

🔍 Summary

The GENIUS Act marks a historic milestone in U.S. and global crypto regulation – the first federal law targeting stablecoins. It delivers transparency, safety, and a gateway for stablecoins to become a legitimate means of payment, unlocking significant opportunities for the crypto industry. USD-pegged tokens stand to benefit the most, while more volatile or under-collateralized assets may face increased competition and regulatory pressure.