19-6-2025 – President Donald Trump has thrown his weight behind the GENIUS Act, a pioneering Senate bill crafted to regulate stablecoins. Hailing it as a masterstroke, Trump took to Truth Social to champion the legislation, urging the House of Representatives to swiftly greenlight the bill without tacking on extraneous provisions. He envisions the Act propelling the United States to the forefront of digital asset innovation, unlocking a torrent of investment and ingenuity.
The GENIUS Act, which sailed through the Senate with a decisive 68-30 vote, marks the nation’s first foray into regulating stablecoins—digital tokens pegged to the US dollar. The legislation mandates stringent safeguards, including full 1:1 reserve backing, robust licensing requirements, and rigorous anti-money laundering protocols. By curbing reckless reserve management, the Act seeks to shield consumers and bolster market stability.
Yet, the bill’s journey is not without hurdles. While House Republicans largely endorse stablecoin regulation, some advocate bundling the GENIUS Act with a broader cryptocurrency framework that would delineate regulatory roles across agencies. Trump, however, has sounded a cautionary note, warning that such a merger risks stalling the bill’s momentum and dimming America’s competitive edge.
Senator Bill Hagerty, the bill’s architect, echoes Trump’s call for haste, expressing hope that the law will be signed before the Fourth of July. He has cautioned against amendments or mergers that could jeopardle Senate resistance, where a 60-vote threshold looms large.
Despite its bipartisan support, the GENIUS Act has sparked debate. Senator Elizabeth Warren has raised eyebrows, suggesting the bill could inadvertently favour Trump’s kin, who are linked to stablecoin ventures like USD1. Meanwhile, Senator Mark Warner, while acknowledging the urgency of keeping pace in the global digital asset race, has voiced reservations about the legislation’s scope.
Major financial institutions stand poised to dive into the stablecoin market once the rules take effect. The Act aims to position US dollar-backed stablecoins as global frontrunners, particularly against Asian regulatory rivals.
