Trump Signs ‘GENIUS Act’ Establishing Stablecoin Regulations

President Donald J. Trump signed the “GENIUS Act” into law today, establishing the first federal regulatory framework for stablecoins in the United States. The Act marks a significant step towards U.S. leadership in cryptocurrency, impacting stablecoin regulation and market confidence.

The Act introduces regulatory clarity for dollar-backed stablecoins, which could enhance market confidence and drive institutional adoption. It’s expected to primarily affect stablecoins such as USDC, USDT, and DAI, without detailing specific protocols.

Trump’s GENIUS Act: A New Era for Stablecoins

President Trump signed the “GENIUS Act” today at the White House, solidifying the first federal regulatory framework for stablecoins in the U.S. The Act aims to foster American leadership in global finance and the cryptocurrency sector. According to Trump, this move creates a clear path for dollar-backed stablecoins.

The Act introduces regulatory clarity for dollar-backed stablecoins, which could enhance market confidence and drive institutional adoption. It’s expected to primarily affect stablecoins such as USDC, USDT, and DAI, without detailing specific protocols.

Community and industry reactions are largely optimistic. President Trump stated, “The Genius Act creates a clear and simple regulatory framework to establish and unleash the immense promise of dollar-backed stablecoins.” The White House described it as a move to “cement US dominance in crypto”.

GENIUS Act Sets Precedent with Federal Stablecoin Guidelines

Did you know? This move marks the first federal-level guidance on stablecoins, setting a precedent in the U.S. where past regulations focused on state-level oversight.

As of 03:43 UTC on July 20, 2025, USDC’s price remains at $1.00, with a market cap of $64,590,192,082 and market dominance of 1.66%. However, trading volume decreased by 52.69%, with 24-hour price changes showing a -1.01% shift, as per CoinMarketCap data.

Insights from Coincu suggest the “GENIUS Act” could encourage increased U.S. compliance focus in crypto markets. Stablecoin regulations may bolster institutional confidence and participation, impacting decentralized finance platforms reliant on regulated stablecoin liquidity.