On July 18, 2025, President Donald J. Trump signed the GENIUS Act into law, marking an important milestone for the United States in the area of digital assets. This legislation aims to create a comprehensive regulatory framework for stablecoins, emphasizing consumer protection through reserve backing requirements and promoting transparency among issuers. Additionally, the GENIUS Act seeks to bolster the global standing of the U.S. dollar by increasing demand for U.S. Treasuries and providing clear regulations that encourage responsible innovation in the digital asset market.

The GENIUS Act establishes the first federal regulatory system specifically for stablecoins, requiring issuers to maintain full reserve backing with liquid assets, such as U.S. dollars. It enforces strict marketing regulations to prevent deceptive practices and prioritizes the claims of stablecoin holders in the event of insolvency. Furthermore, by mandating compliance with the Bank Secrecy Act, the legislation strengthens national security measures against illicit activities in the digital currency sector, thereby enhancing enforcement against money laundering and fraud.

With the implementation of the GENIUS Act, President Trump aims to realize his vision of positioning the United States as a leader in cryptocurrency and digital assets. This act is part of broader initiatives, including previous executive orders intended to promote U.S. leadership in the digital economy. Through these measures, the administration seeks to attract substantial investment and innovation, fostering a competitive environment for digital assets in the global market.

Original: article