U.S. Passes Landmark GENIUS Act to Regulate Stablecoins as Crypto Market Tops $4 Trillion

President Donald Trump signed the GENIUS Act into law on July 18, marking the first federal legislation to regulate stablecoins. The move follows Congressional approval on July 17 and coincides with the cryptocurrency market surpassing $4 trillion in capitalization.

The legislation establishes federal and state oversight for dollar-backed stablecoins, reshaping financial infrastructure. Trump has embraced the crypto spotlight, launching his own stablecoin, NFTs, and memecoin—positioning himself as a pro-digital asset leader.

NFTs and memecoins diverge fundamentally: NFTs represent unique digital ownership in art or gaming, while memecoins are interchangeable tokens driven by social trends. Regulatory treatment varies significantly—the SEC often classifies memecoins as collectibles, while the IRS may impose 28% capital gains taxes on certain NFTs.