In a serious milestone for the crypto business, President Donald Trump and Congress this week put new laws in place for stablecoins, a sort of cryptocurrency tied to belongings just like the U.S. greenback.
They handed and signed the GENIUS Act into law.
What are stablecoins?
How cryptocurrencies work
As cryptocurrencies and associated applied sciences attain into politics, intertwine with the bigger economic system and affect the surroundings, everybody might use a way of what they’re and the way they work.
Large image view:
Stablecoins are a fast-growing nook of the cryptocurrency business which have produced monumental income for a few of the main gamers concerned.
They provide a buffer from cryptocurrency’s infamous volatility as a result of they’re pegged to real-world belongings, like U.S. {dollars} or gold. Usually, meaning a single stablecoin is price $1, making them a way more dependable digital asset for industrial transactions than different types of crypto.
What’s the GENIUS Act?
US President Donald Trump shows the GENIUS Act (Guiding and Establishing Nationwide Innovation for US Stablecoins Act), which codifies the usage of stablecoins — cryptocurrencies pegged to secure belongings just like the US greenback or US bonds — after signing
The GENIUS Act is the formal title for the stablecoin bill: Guiding and Establishing Nationwide Innovation for U.S. Stablecoins. The stablecoin bill regulates how stablecoin issuers function within the U.S.
The backstory:
The transfer to control the business has been bipartisan. The bill creates a federal framework to control the stablecoin business, which is at the moment ruled by a patchwork of present federal and state legal guidelines.
Presently:
President Trump signed the GENIUS Act into law Friday after it passed with bipartisan support in Congress.
What they’re saying:
Trump has repeatedly pledged to make the U.S. the “crypto capital of the world.”
“For years you have been mocked and dismissed and counted out,” Trump instructed crypto business executives at a White Home bill signing attended by about 200 individuals, together with a number of prime GOP lawmakers. “This signing is an enormous validation of your onerous work and your pioneering spirit.”
Trump mentioned in a White Home memo that the bill’s passage “might be maybe the best revolution in monetary expertise for the reason that beginning of the web itself.”
The opposite facet:
Trump’s involvement within the crypto business sophisticated the laws’s path, as some Democrats mentioned the laws might assist Trump enrich himself.
Trump launched a meme coin earlier this yr that has generated greater than $320 million in charges for its creators, in accordance with the blockchain evaluation agency Chainalysis.
And his household holds a major stake in World Liberty Monetary, a crypto challenge that launched its personal stablecoin earlier this yr and acquired an early enhance from an funding fund within the United Arab Emirates.
Large image view:
A provision of the GENIUS Act bans Congress members from profiting off stablecoins however excludes the president and his household.
The Supply: Data on this article was taken from public remarks given by President Trump through the bill’s public signing on Friday, July 18, 2025, and from a White Home memo on the passage. Background info was taken from The Related Press. This story was reported from Detroit.
