BREAKING: Trump’s GENIUS Act Unleashes First-Ever Federal Crypto Framework

The crypto Wild West just got a sheriff—love it or hate it.

President Trump's signature on the GENIUS Act marks a tectonic shift: digital assets now operate under explicit federal oversight for the first time. No more regulatory limbo—just hard rules.

Wall Street's already gaming the system. Expect a gold rush of 'compliant' shitcoins within weeks.

This changes everything. Or nothing. Depends who's holding the bag.

TLDR

• President Donald Trump signed the GENIUS Act into law, marking the first major federal crypto regulation in the United States.
• The GENIUS Act establishes a clear regulatory framework for stablecoins issued within or distributed in the U.S.
• Stablecoins must now be fully backed by U.S. dollars or similarly liquid assets under the new law.
• Issuers with a market capitalisation of over $50 billion are required to undergo annual audits.
• The law includes new compliance standards for foreign stablecoin issuers operating in U.S. markets.

The United States established its first comprehensive crypto law as President Donald Trump signed the GENIUS Act into law. This landmark move sets a federal framework for regulating stablecoins across all issuing entities. The GENIUS Act positions the U.S. as a regulatory leader in the growing digital finance sector.

The legislation mandates that liquid assets like U.S. dollars or equivalents fully back all stablecoins. It also requires large issuers to undergo annual audits and comply with transparency standards. Foreign issuers must meet new eligibility criteria, and the law emphasises national security and compliance oversight.

Lawmakers in both the House and Senate passed the GENIUS Act with bipartisan support, marking a rare agreement on crypto policy. The House passed it with a 308–122 vote following Senate approval earlier in the week. Trump’s approval came shortly after, completing the legislative process and launching the federal oversight era for stablecoins.

USDT Leads Market as GENIUS Act Brings Stablecoin Oversight

Tether’s USDT remains the dominant stablecoin in circulation, holding $162 billion in supply as of July 18. Under the GENIUS Act, Tether will need to comply with new requirements for full reserve backing. The law also mandates independent audits for issuers exceeding a $50 billion market cap.

Tether CEO Paolo Ardoino attended the WHITE House signing, highlighting the industry’s involvement in shaping the new framework. The GENIUS Act applies uniformly, placing pressure on large issuers like USDT to maintain operational transparency. These measures aim to secure consumer trust and stabilize the broader digital asset market.

Stablecoin issuers must now maintain verifiable liquidity reserves, aligning operations with standards imposed by the new legislation. Tether and similar entities face new scrutiny from federal agencies. The GENIUS Act allows U.S. regulators to monitor large-scale activity and enforce accountability among private issuers.

USDC Adjusts Operations to Comply with GENIUS Act Regulations

Circle’s USDC, the second-largest stablecoin by market share, reports a total supply of around $63 billion. The GENIUS Act compels Circle to reinforce its reserve management and submit to annual third-party audits. This ensures compliance with asset backing rules enforced under the new federal guidelines.

CEO Jeremy Allaire confirmed his attendance at the bill signing, underscoring industry support for the legislation. USDC must now meet the same strict federal standards set for other major stablecoins. The GENIUS Act brings consistent regulations to a previously fragmented space.

En route to the @WhiteHouse for the historic signing of the GENIUS Act, one of the most transformative pieces of legislation in decades. Global financial system, welcome to the Internet!

— Jeremy Allaire – jda.eth / jdallaire.sol (@jerallaire) July 18, 2025

The act also sets compliance expectations for stablecoin issuers operating outside the U.S. but distributing within its borders. Companies like Circle must now adjust their frameworks to align with updated federal rules. This MOVE enhances transparency and prepares USDC for future global financial integration.

Stablecoin Law Sets Clear U.S. Direction

The GENIUS Act reflects a broader shift in U.S. strategy toward digital assets and global financial leadership. With Trump’s signature, the act sets clear expectations for stablecoin operations and issuer responsibilities. The legislation separates U.S. crypto policy from the previous administration’s inconsistent approach.

Trump noted the contrast with prior leadership, referencing past enforcement confusion and lack of regulatory clarity. Industry executives present at the signing emphasized the significance of this legislation. The GENIUS Act now serves as the foundation for further crypto-related bills advancing through Congress.

The law’s passage follows earlier legislative activity, including Trump’s repeal of a crypto tax rule involving custodial brokers. GENIUS builds on that action by formalizing stablecoin rules and expanding oversight mechanisms. These combined efforts signal a growing political consensus on digital asset regulation.