U.S. Moves Closer to Federal Stablecoin Regulation

President Trump supports the GENIUS Act, slated for a House vote during “Crypto Week.” This bill proposes establishing comprehensive regulation for U.S. stablecoins.

If passed, the GENIUS Act would shift regulatory oversight to banking agencies, fostering institutional adoption and further regulatory clarity in the digital asset space.

GENIUS Act Aims to Lead U.S. Digital Asset Sector

President Trump announced on social media the imminent vote on the GENIUS Act during “Crypto Week.” This legislative proposal aims to establish the United States as a leader in the digital asset sector. The Act focuses on removing the SEC and CFTC from direct oversight, reallocating responsibilities to federal banking entities.

This move is expected to redefine the regulatory landscape for stablecoins in the United States, allowing private companies to issue stablecoins under a clarified framework. The changes could drive institutional participation and enhance the digital asset market infrastructure.

“Happy Crypto Week. The House of Representatives is about to vote on a major bill, the GENIUS Act, aimed at making the United States the undisputed leader in the digital asset space. Digital assets represent the future, and the United States is far ahead. Let’s complete the first vote this afternoon (all Republicans should vote in favor). This is our moment. All of this is to make America great again, stronger and more excellent than ever before. We are leading the world and will work together with the Senate and the House to push more related legislation through.” — Donald Trump, President, United States

Market and community reactions indicate broad anticipation for the stability the Act promises to deliver. President Trump’s call for unanimous Republican support underscores the political momentum behind the initiative, aligning with long-term goals of nurturing innovation in digital finance.

Potential Impacts on Ethereum and Stablecoins

Did you know?
A similar regulatory push, MiCA, brought stablecoin growth in the EU; the GENIUS Act could propel a similar trend in the U.S. stablecoin growth in the EU

As of the last update, Ethereum (ETH) has a price at $3,081.63, a market cap of $371.99 billion, and 24-hour trading volume of $33.90 billion. ETH’s price increased 2.83% over 24 hours, and 17.59% in the last week, according to CoinMarketCap.

According to Coincu analysts, the GENIUS Act could introduce long-term financial benefits and technological advancements in the U.S. crypto landscape. It encourages institutional investment while potentially reducing market volatility via regulatory robustness and stability. See how technological advancements have impacted Ethereum.