19-7-2025 – President Donald Trump signed the GENIUS Act into law Friday, establishing the first comprehensive federal regulatory framework for cryptocurrency in the United States and bringing oversight to the $238 billion stablecoin market.
The legislation creates uniform national standards for stablecoin issuers, replacing the patchwork of state-level regulations that have governed digital assets like Tether (USDT) and USD Coin (USDC). Under the new framework, stablecoin companies must meet federal reserve requirements and undergo regular audits to maintain their licenses.
Trump called the measure a “massive validation” for the digital asset industry during the White House signing ceremony, stating the legislation would strengthen the dollar’s global position while fostering financial innovation. The law addresses key concerns that have limited institutional adoption, including unclear regulatory pathways and compliance requirements that varied by jurisdiction.
Industry analysts expect the regulatory clarity to accelerate stablecoin integration into traditional banking systems and expand their use in decentralized finance platforms. Major stablecoin issuers have already signaled plans to pursue federal licensing under the new regime.
Market reaction has been measured, with USDT and USDC maintaining stable trading ranges despite the historic development. Congressional leaders from both parties praised the bipartisan effort, with House Financial Services Committee members calling it a model for future digital asset legislation.
The Treasury Department will begin accepting federal stablecoin license applications within 180 days, setting the stage for the first federally regulated cryptocurrency companies in U.S. history.
