Trump Signs Historic GENIUS Act: New Cryptocurrency Law Could Reshape Banking and Strengthen US Dollar

President Donald Trump signed the GENIUS Act into law on July 18, 2025, establishing the first major federal framework for cryptocurrency regulation in the United States. The bipartisan bill, which passed with 206 Republican and 102 Democratic votes in the House, sets clear rules for stablecoins—digital currencies pegged to the US dollar.

The GENIUS Act mandates that stablecoins must be fully backed by US dollars or Treasury reserves, ensuring a one-to-one collateral ratio. Larger issuers handling over $10 billion will face federal oversight, while smaller operators can work with state regulators. The law takes effect in 18 months unless agencies accelerate implementation.

This legislation creates a structured pathway for both traditional financial institutions and fintech firms to participate in the digital asset economy. Foreign stablecoin providers have a three-year compliance window to serve US markets.