historic turning point for stablecoin

The House of Representatives has approved with 308 votes in favor and 122 against the GENIUS Act, the first legislative measure that legitimizes regulated stablecoins in the U.S. financial system.

The text is now on President Donald Trump’s desk, whose signature will represent the final step for its enactment.

What is the GENIUS Act and why does it mark a revolution for stablecoin and crypto?

GENIUS Act (“Giving Every National Investor Uniform Security”) is the first U.S. law entirely dedicated to providing recognition and regulation to stablecoins.

The approval on June 18, 2024, concludes months of work and bipartisan dialogue: over 100 Democrats and Republicans supported the measure, highlighting a concrete turning point for the crypto-economy.

With the GENIUS Act, companies in the sector will be able to offer stablecoins that comply with the security, legality, and transparency standards required to enter the mainstream U.S. financial system.

It represents, in fact, the first clear regulatory foundation for the full integration of decentralized finance with the rules of the major U.S. markets.

Once signed by Donald Trump, the GENIUS Act will introduce for the first time certain and uniform rules for the issuance, transparency, and management of stablecoins. As a result:

• Crypto companies will be able to access traditional banking and financial partnerships more easily;
• Investor istituzionali will finally have a clear framework on digital assets previously considered “grigi”;
• Regulators like SEC and Fed will have legal tools to oversee, prevent fraud, and protect consumers;
• More transparent and secure market: reduced risk of fraud, manipulation, illicit uses of stablecoin.

CLARITY Act: doubts and controversies 

According to Paul Atkins, SEC Secretary: “This law is a fundamental step to stimulate innovation and provide clear and certain rules.”

The sector sentiment is also expressed by Brad Garlinghouse of Ripple: “A historic motion that opens a new chapter for crypto and blockchain in the United States.”

The approval came during the so-called “crypto week” (June 17–21, 2024), in which the House sought to accelerate other innovative measures as well. However, the consensus was bipartisan only after a heated debate:

• Democratic opposition: request to introduce a presidential ethics in the law, after accusations of alleged illicit agreements of the Trump family with crypto companies;
• Concerns about CBDCs: fears of a possible introduction of “central bank digital currencies” as state currency have slowed down the discussion;
• Only a direct intervention by Trump allowed the impasse to be resolved and the voting to be accelerated.

Other projects like the CLARITY Act — dedicated to creating a comprehensive framework for all cryptocurrencies — remain pending.

The request for presidential ethical-financial regulations has slowed down the legislative process of the CLARITY, while the GENIUS Act has received the green light due to its more limited and specific scope.

What are the reactions of the sector and what to expect in the near future?

The response from the crypto community and major financial operators was immediate and positive.

Ripple, Coinbase, and other top players described the passing of the GENIUS Act as “a historic victory,” emphasizing the importance of greater regulatory clarity and the opening of the US market to global investors.

Many emphasize, however, that it will be crucial to monitor the implementing decrees and the concrete application of the rules, both to avoid new “gray” areas and to also push the CLARITY Act, considered a mandatory step for truly organic legislation on digital assets.

Starting today, with the anticipated signing by Trump, Bitcoin and stablecoin could have greater room for movement on major banking circuits, while DeFi companies will finally be able to reach out to institutional clients without regulatory risk.

Once the presidential signature is obtained, the GENIUS Act will make the United States the first country in the world to have adopted by law a detailed framework on stablecoins. This is an unprecedented case, potentially set to change the rules of international finance.

However, the real game will be played on the effectiveness of the implementing regulations and the ability to reconcile security and innovation. Keep an eye on the developments regarding the CLARITY Act and the next moves of the regulators!

The future depends on the speed with which the political system and industry can find new balances. To stay updated, follow the community and monitor its official channels: the cryptocurrency market could change face in the coming weeks.