Trump Enacts GENIUS Act, Landmark Move for U.S. Crypto Regulation

President Donald Trump signed the GENIUS Act into law on July 18, 2025, in Washington, marking a crucial development in U.S. cryptocurrency regulation. The act aims to establish the country as a key player in the crypto industry by providing significant regulatory clarity and protecting stablecoin holders.

The GENIUS Act, regarded as a pivotal moment in U.S. crypto legislation, was signed into law by President Trump, who called it “a massive validation” for the crypto industry. With bipartisan congressional support, the act passed the House 308-122 and the Senate 68-30. SEC Commissioner Paul Atkins highlighted the importance of the law, stating it establishes “clear rules of the road” for crypto investments.

GENIUS Act Promises Stability with 100% Stablecoin Reserves

Immediate changes include mandated 100% reserves for U.S. Dollar-backed stablecoins in liquid assets or short-term Treasuries. This provides much-needed transparency and aims to bolster investor confidence, potentially impacting protocols like USDT, USDC, and DAI.

Market reactions have largely been positive. Crypto industry leaders attended the signing ceremony, emphasizing the act’s potential to enhance the U.S.’s standing as a secure crypto market. White House statements underscore the act’s implications for innovation and consumer protections.

“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,” said President Donald J. Trump.

CoinMarketCap Analysis: Stablecoin Positions Secure Amid Regulatory Shift

Did you know? The GENIUS Act follows the EU’s MiCA implementation in 2024, which significantly increased stablecoin activity under regulated issuers, illustrating potential market behavior shifts due to new regulations.

As of July 19, 2025, Tether USDt (USDT) holds a market cap of $160.93 billion and maintains a market dominance of 4.16%, according to CoinMarketCap. The stablecoin’s price remains steady at $1.00, with minor price fluctuations observed over 90 days.

Insights from Coincu’s research team suggest that legislative clarity offers favorable conditions for market participants. Increased transparency and regulatory compliance could lead to robust stablecoin growth, potentially driving broader market adoption and facilitating financial innovation.