The GENIUS Act Officially Becomes U.S. Law

Key Takeaways

• The GENIUS Act creates a legal foundation for fiat-backed stablecoins in the U.S.
• It clarifies that payment stablecoins are not securities, removing SEC burdens for qualifying issuers.
• The bill received bipartisan support but was celebrated most heavily by Republican leaders and crypto executives.
• This marks the first major federal crypto law passed under Trump’s new administration.
• More legislation is on the way, including the CLARITY Act and Anti-CBDC bill, both expected to stir Senate debate.

A Star-Studded Signing Ceremony

Crypto Executives on Center Stage

The GENIUS Act’s signing was not your average political event. Apart from Donald Trump, among those present were top executives from some of the world’s largest cryptocurrency companies, including:

• David Ripley, Kraken co-CEO 
• Cameron and Tyler Winklevoss, Gemini co-founders 
• Brian Armstrong, Coinbase CEO 
• Jeremy Allaire, Circle CEO 
• Paolo Ardoino, Tether CEO 
• Vladimir Tenev, Robinhood CEO

Sergey Nazarov Meeting Donald Trump

Source: Associated Press

These industry leaders have long advocated for regulatory clarity, and many were early supporters of Trump’s 2024 campaign.

What The GENIUS Act Means For Crypto Regulation

SEC Responds To New Law

The U.S. Securities and Exchange Commission (SEC) offered an official response shortly after the law’s passage.

New SEC Chair Paul Atkins, replacing Gary Gensler, emphasized that the act provides “clear rules of the road” for stablecoin issuers.

Commissioner Hester Peirce’s Perspective

Commissioner Hester Peirce, who now leads the SEC’s crypto task force, praised the act for its focus on payments innovation:

“Privately issued stablecoins already enjoy broad use as a payments mechanism. The GENIUS Act puts a regulatory framework around them, aiming to protect users and the financial system.”

She also confirmed that payment stablecoins will not be classified as securities, exempting them from burdensome SEC reporting requirements, so long as they meet transparency and reserve criteria.

Trump’s Broader Crypto Agenda

Since taking office in January, Trump has aligned himself closely with the crypto industry. His initiatives include:

• Pardoning Silk Road founder Ross Ulbricht
• Establishing a national Bitcoin reserve
• Appointing crypto-friendly officials like Paul Atkins to leadership roles 

President Donald Trump Signing The GENIUS Act

Source: Associated Press

While Trump acknowledged that support from the crypto community could help him politically, he also stressed the importance of blockchain in shaping the future of U.S. innovation.

The CLARITY Act & Anti-CBDC Bill

The GENIUS Act is just one of three major crypto-related bills gaining traction in Congress. Two others are now moving to the Senate:

• The CLARITY Act – Aims to provide definitions and roles for digital asset intermediaries.
• The Anti-CBDC Surveillance State Act – Seeks to ban government-issued central bank digital currencies (CBDCs).

While both received bipartisan support in the House, opposition is expected in the Senate, particularly due to concerns over Trump’s personal financial ties to crypto firms.

FAQ

What is the GENIUS Act?

The GENIUS Act stands for Guiding and Establishing National Innovation for US Stablecoins. It is a federal law that sets rules for the issuance and backing of stablecoins, focusing on transparency, consumer protection, and innovation.

Are stablecoins now legal in the U.S.?

Yes, stablecoins that meet the act’s requirements, such as full fiat reserves and 1:1 redeemability, are now officially recognized and regulated under U.S. law.

How does this affect the SEC’s role?

The SEC will no longer classify qualified payment stablecoins as securities. This shift limits the SEC’s oversight while still allowing it to enforce fraud and misconduct provisions.

Why did crypto executives support this bill?

The GENIUS Act provides long-awaited clarity for stablecoin issuers, reducing regulatory uncertainty and allowing U.S.-based crypto companies to innovate without fear of arbitrary enforcement.

What are the next steps for crypto regulation?

The CLARITY Act and the Anti-CBDC Surveillance State Act are both awaiting Senate consideration. Their outcomes will further shape the regulatory landscape for digital assets in the U.S.