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Trump Signs GENIUS Act Establishing First Federal Stablecoin Framework

Federal agencies have six months to draft regulations shaping reserve requirements, audit protocols, compliance measures for stablecoin issuers.

Representations of cryptocurrencies are seen in front of displayed decreasing stock graph in this illustration taken November 10, 2022. REUTERS/Dado Ruvic/Illustration/File photo
President Donald Trump, surrounded by lawmakers, signs the GENIUS Act into law during a ceremony in the East Room of the White House July 18, 2025, in Washington, D.C. (Photo by Anna Moneymaker/Getty Images)
U.S. President Donald Trump during a signing ceremony for the GENIUS Act in the East Room of the White House in Washington, DC, US, on July 18, 2025.
Stablecoins

Overview

  • The GENIUS Act, signed July 18, 2025, creates a federal licensing system for dollar-pegged stablecoins with expanded regulator authority.
  • Issuers must fully back tokens with low-risk assets such as U.S. Treasuries, submit monthly audit attestations, enforce anti-money laundering controls, empower legal asset freezes.
  • Shares of crypto-linked firms and prices of Ether and Bitcoin rallied in early trading as investors welcomed the regulatory clarity.
  • Reserve mandates are expected to boost demand for U.S. dollars and short-term government debt by requiring stablecoin reserves to consist of cash or Treasury bills.
  • Major issuers like Tether and Circle, which together represent over 80% of stablecoin circulation, are reconfiguring reserves and compliance processes ahead of implementation.