Trump Signs GENIUS Act, Establishing U.S. Crypto Framework

President Donald Trump signed the GENIUS Act on July 18, 2025, establishing a regulatory framework for stablecoins in the United States.

The introduction of the GENIUS Act is significant as it aims to create legal clarity for stablecoins, fulfill Trump’s promise of making the U.S. a crypto hub, and stimulate demand for U.S. dollar reserves.

GENIUS Act Aims to Bolster U.S. Global Crypto Leadership

President Donald Trump signed the GENIUS Act on July 18, 2025, fulfilling a campaign promise to make the U.S. a leader in digital currency regulation. This legislation creates a clear framework for stablecoins, marking a decisive shift from previous regulation methods. By requiring 100% reserves, it aims to boost confidence in digital assets. The impact of the GENIUS Act extends beyond regulation, as its measures could lead to increased U.S. Treasury bond demand, further solidifying the U.S. dollar’s global standing. Crypto executives, including those from major firms, endorsed the move, attending the White House ceremony. President Trump stated,

indicating broad industry support.

“I pledged that we would bring back American liberty and leadership and make the United States the crypto capital of the world, and that’s what we’ve done. The Genius Act creates a clear and simple regulatory framework to establish and unleash the immense promise of dollar-backed stablecoins.”

GENIUS Act’s Potential to Drive Future DeFi Growth

Did you know? The GENIUS Act’s clear framework for stablecoins differs from past regulatory attempts like the unsuccessful STABLE Act, which lacked bipartisan backing and industry support, marking a historic regulatory shift.

According to CoinMarketCap, USDC is priced at $1.00 with a market cap of 64.77 billion. Its trading volume over 24 hours fell by 26.43%. The USDC price showed negligible shifts across several time frames.

Insights from the Coincu research team suggest the GENIUS Act could catalyze institutional interest, by offering a stable, regulated environment for crypto operations. This legislative change is positioned to enhance trust and accelerate market integration, potentially fuelling future DeFi growth.