Trump Signs First Stablecoin Law in the US
Date: 2025-07-21 Author: Oliver Abernathy Categories: CRYPTO PAYMENTS
Donald Trump, the current US President, signed a new law called the GENIUS Act, which for the first time at the federal level sets the framework for the issuance and circulation of stablecoins. This document was one of three approved by Congress on July 17, along with the CLARITY Act and the Anti-CBDC Act, covering various aspects of digital assets.
According to the new act, all stablecoins must be 100% backed by liquidity, and issuers with a capitalization of over $50 billion will be required to undergo mandatory audits once a year. In addition, the payment of interest or any income to holders of such coins is prohibited. The GENIUS Act also regulates the activities of foreign companies working with American users in the field of stablecoins.
During the signing ceremony, Trump noted that this step will help unlock the potential of dollar stablecoins by creating a simple and transparent legal basis for their use. The event was attended by well-known figures in the industry, including Gemini co-founders Cameron and Tyler Winklevoss, Circle CEO Jeremy Allaire, Tether CEO Paolo Ardoino, and Vladimir Tenev, who heads Robinhood.
Addressing representatives of the crypto community, Trump emphasized that their achievements have long been underestimated, but the new bill proves the importance of their work and commitment to innovation.
The document will come into force in six months or 120 days after the publication of detailed instructions from regulatory authorities. According to CoinGecko, the stablecoin market leader is Tether's USDT with a capitalization of about $161 billion. It is followed by Circle's USDC, whose volume is close to $65 billion.
The top of the largest stablecoins also includes USD1, a project of the DeFi platform World Liberty Financial, owned by the Trump family. The president's opponents have repeatedly emphasized the possible conflict of interest due to his participation in cryptocurrency initiatives, including the TRUMP meme coin.
It is curious that two days before the approval of the GENIUS Act, the House of Representatives rejected all three bills related to digital assets, but in the end they were still adopted.
With the introduction of the GENIUS Act, the United States took the first serious step towards the formation of transparent regulation of the stablecoin market, which has been actively developing in recent years and continues to attract the attention of investors and major industry players.
