In a major breakthrough for U.S. digital asset policy, the House of Representatives on July 17, 2025, passed the GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins)—the country’s first federal framework to regulate stablecoins. Passed with strong bipartisan support in a 308–122 vote, the legislation follows the Senate’s approval in June and now awaits President Donald Trump’s signature, which is expected within days.
The GENIUS Act mandates that payment stablecoins must be fully backed 1:1 by high-quality liquid assets such as U.S. dollars, Treasuries, or deposits held at the Federal Reserve. It also imposes strict audit requirements and monthly reserve disclosures to promote transparency and consumer trust.
Under the bill, stablecoin issuers will be regulated based on size: those with over $10 billion in circulation will fall under federal oversight, while smaller issuers can continue under state regulation. This dual-track system seeks to balance innovation with robust consumer protection.
Crypto Week Climax and Political Compromise
The GENIUS Act’s passage capped off what lawmakers referred to as “Crypto Week”—a coordinated legislative push to bring digital asset regulation to the forefront. Alongside the stablecoin bill, the House also advanced the CLARITY Act, clarifying the jurisdictional roles of the SEC and CFTC, and the Anti-CBDC Surveillance State Act, which prohibits the Federal Reserve from issuing a central bank digital currency.
Tensions briefly derailed proceedings when conservative Republicans blocked votes, demanding that the stablecoin regulation be tied to a CBDC ban. The impasse was resolved after negotiators agreed to incorporate the CBDC restriction into the annual National Defense Authorization Act.
President Trump, who has championed pro-crypto policies during his 2024 campaign and presidency, personally met with lawmakers at the White House to resolve the standoff. His support proved instrumental in uniting factions behind the bill. Trump is expected to sign the GENIUS Act imminently, further reinforcing his administration’s push for U.S. leadership in the crypto space.
Market Optimism and Industry Reaction
Crypto industry leaders and investors praised the bill as a critical step toward regulatory clarity. Dante Disparte, Chief Strategy Officer at Circle, said the legislation was “a defining moment for the future of money and internet finance.” Market response was equally bullish—Bitcoin hovered around $119,300 and Ethereum gained over 1%, trading at $3,429 after the House vote.
However, the bill has faced criticism from Democratic lawmakers. Representative Maxine Waters and Senator Elizabeth Warren voiced concern over ethical gaps—particularly that the law bans lawmakers from profiting off stablecoins but does not extend those restrictions to the president or their family. Trump’s involvement in crypto-themed ventures like his TrumpCoin has raised eyebrows over potential conflicts of interest.
Despite this, the GENIUS Act is expected to reshape how stablecoins operate in the U.S. Federal agencies including the Treasury, Federal Reserve, and CFTC are now tasked with drafting detailed implementation rules within 180 days, setting the stage for full rollout by mid-2026.
As the U.S. finally joins other nations in formally regulating stablecoins, the GENIUS Act marks a pivotal moment for the future of digital currency and the broader crypto ecosystem.
