BREAKING: Trump Declares GENIUS Act Victory—Congressional Gridlock Smashed
Washington's crypto-climate just got hotter. Former President Trump claims a legislative coup with the GENIUS Act—framing it as a rare bipartisan breakthrough in a divided Congress.
Why it matters: The bill, shrouded in typical DC opacity, promises to 'streamline innovation' (read: likely carve out tax loopholes for tech oligarchs).
Between the lines: No details yet on funding mechanisms—but expect the usual dance of pork-barrel promises and Wall Street backslapping. As always, retail investors will be last to the trough.
Bottom line: In a town where 'progress' means kicking cans, Trump's betting this headline-grabber will shake loose some campaign donations. Genius move—or just another DC IOU?
Strategic Reversal Following Congressional Setback
The announcement represents a dramatic reversal from earlier Tuesday’s setback, when House Republicans failed to secure a 196-222 procedural vote that WOULD have advanced “Crypto Week” legislation. The failure stemmed from internal Republican divisions, with House Freedom Caucus members opposing the bundled package that included the GENIUS Act alongside the Clarity Act and defense appropriations.
The GENIUS Act establishes the first federal framework for dollar-pegged stablecoins, granting sweeping authority to the Department of Treasury and creating regulated pathways for private companies to issue digital dollars. The Senate passed the legislation with a 68-30 vote in June, with bipartisan support despite Democratic concerns over Trump’s cryptocurrency ventures.
Market Implications and Economic Projections
Treasury Secretary Scott Bessent has projected the U.S. stablecoin market could expand nearly eightfold to exceed $2 trillion within several years, underscoring the legislation’s potential economic impact. The bill aims to regulate the roughly $238 billion stablecoin market, creating a clearer framework for banks, companies and other entities to issue the digital currencies.
The renewed momentum follows sustained pressure from Trump, who has characterized stablecoin regulation as critical to maintaining American technological supremacy over China and Europe. Industry observers view the GENIUS Act as the crypto sector’s most achievable legislative priority, with established players seeking regulatory clarity to legitimize mainstream adoption.
“I want to thank the Congressmen/women for their quick and positive response,” Trump concluded, signaling confidence in Thursday’s procedural vote outcome.
