In a landmark moment for the cryptocurrency sector, U.S. President Donald Trump formally signed the GENIUS Act into law on Friday (local time), bringing in a full regulatory framework for payment stablecoins and solidifying America's vision to lead the world's digital economy.
Officially the Guiding and Establishing National Innovation for U.S. Stablecoins Act, the new legislation is seen as a landmark bill that seeks to regulate the application of dollar-backed digital tokens.
"On Friday, July 18, 2025, the President signed into law S.1582, the GENIUS Act, which authorizes regulation of payment stablecoins, and for other purposes," read a release from the White House.
"They named it after me," Trump jokes at ceremony
Surrounded by industry leaders in the cryptocurrency space, President Trump marked the occasion by touting the importance of the legislation and facetiously claiming responsibility for its acronym.
"The GENIUS Act — they named it after me. This is a hell of an act!" he testified during the signing ceremony, before announcing it as a "giant step" in making the United States the epicenter of crypto innovation.
To the wider crypto community, Trump had words of affirmation: "For years, you were mocked and dismissed… this signing is a massive validation of your hard work and pioneering spirit. Congratulations on this incredible achievement."
Unambiguous opposition to CBDCs
As the GENIUS Act encourages development in the private stablecoin space, Trump used the moment to reaffirm his strong opposition to a U.S. Central Bank Digital Currency (CBDC), announcing a stark policy divergence.
"I am also strongly committed to my promise never to permit the introduction of a Central Bank Digital Currency into America. It won't happen," he assured, raising applause among crypto proponents concerned that such government-issued currencies would threaten financial privacy.
Dollar's digital future: "coming onchain"
U.S. Treasury Secretary Scott Bessent welcomed the new law, stating that it will assist in maintaining the dollar's international dominance as financial systems modernize.
"Blockchain technologies will fuel the next decade of payments, and the U.S. dollar is going onchain," Bessent tweeted.
He also attributed Trump's vision for policy, stating, "Thanks to President Trump's visionary leadership, the GENIUS Act will help seal the U.S. dollar's status as the world reserve currency for generations to come."
The law establishes the foundation of how payment stablecoins — U.S. dollar-pegged digital tokens — are issued and regulated and seeks to strike a balance of consumer protection, financial innovation, and domestic economic interests.
Major elements of the act are:
- Setting legal standards for stablecoin issuers
- Implementing consumer protections
- Clarifying regulatory functions between the SEC (Securities and Exchange Commission) and CFTC (Commodity Futures Trading Commission)
- Facilitating innovation while safeguarding the primacy of the dollar
The GENIUS Act is one of the three significant crypto-related bills proposed during the current U.S. Crypto Week. The other two bills, the Clarity Act and the Anti-CBDC Surveillance State Act, are still waiting to be debated in the Senate.
Read also| Trump Says 10% Tariff Threat Deterred BRICS — Yet Their Summit Went On
Read also| Trump Calls for Release of ‘Credible’ Epstein Documents to the Public
